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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the San Jacinto River Authority to |
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implement a groundwater reduction plan for the conservation of |
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groundwater and the reduction of groundwater withdrawals in |
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Montgomery County, and to issue bonds of the authority. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 426, Acts of the 45th Legislature, |
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Regular Session, 1937, is amended by adding Sections 11 through 11M |
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to read as follows: |
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Sec. 11. GROUNDWATER REDUCTION PLANNING AUTHORITY. |
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Consistent with the purposes of Section 59, Article XVI, Texas |
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Constitution, and in addition to all rights, powers, privileges, |
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authority, and functions conferred by other sections of this Act, |
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the authority is authorized to provide for the conservation, |
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preservation, protection, recharge, and prevention of waste of |
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groundwater and for the reduction of groundwater withdrawals by |
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developing, implementing, and enforcing a groundwater reduction |
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plan to facilitate compliance with the applicable rules, orders, |
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regulations, or requirements of the Lone Star Groundwater |
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Conservation District. If the authority determines to exercise the |
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powers and authority described by Sections 11 through 11M of this |
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Act and to implement a groundwater reduction plan for all or |
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substantially all of Montgomery County, the authority shall have |
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the continuing duty and responsibility to implement and enforce |
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such plan, including the responsibility to develop sufficient |
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alternative water supply resources consistent with the purposes |
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described in this section, subject to the limitations of |
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engineering, financial, and legal feasibility. |
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Sec. 11A. DEFINITIONS. In Sections 11 through 11M of this |
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Act: |
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(1) "Authority" means the San Jacinto River Authority. |
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(2) "Board" means the board of directors of the |
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authority. |
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(3) "Conservation district" means the Lone Star |
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Groundwater Conservation District. |
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(4) "District" means any district or authority created |
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under Sections 52(b)(1) and (2), Article III, or Section 59, |
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Article XVI, Texas Constitution, regardless of the manner of |
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creation, other than the conservation district, a navigation |
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district, a port authority, or a district that does not have legal |
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authority to provide retail water service. |
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(5) "Groundwater reduction plan" means a plan adopted |
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or implemented by the authority to supply water, reduce reliance on |
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groundwater, control groundwater pumping or usage by regulated |
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users, or restrict, allocate, or require water usage among |
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regulated users in order to fully and timely comply with or exceed |
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requirements imposed by the conservation district, including any |
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applicable groundwater reduction requirements and any related |
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water supply plan, water conservation plan, or drought contingency |
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plan of the authority. |
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(6) "Local government" means a municipality, county, |
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district, or other political subdivision of this state or a |
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combination of two or more of those entities. |
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(7) "Participant" means a regulated user |
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participating in the authority's groundwater reduction plan. |
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(8) "Person" means an individual, corporation, |
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organization, government or governmental subdivision or agency, |
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district, local government, business trust, estate, trust, |
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partnership, association, and any other legal entity. |
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(9) "Regulated user" means a person located in whole |
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or in part, or with a service area, certificated area, or boundaries |
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located in whole or in part, in Montgomery County that is subject to |
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any rule, order, regulation, or requirement of the conservation |
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district imposing groundwater withdrawal reductions, except for |
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any person that owns or operates a single groundwater well serving |
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not more than two single-family residential dwellings or units. |
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Sec. 11B. ADDITIONAL POWERS AND DUTIES. (a) In |
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furtherance of Section 11 of this Act and in addition to all rights, |
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powers, privileges, authority, and functions conferred by other |
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sections of this Act, the authority is authorized to take any and |
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all actions necessary or convenient to: |
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(1) design, finance, construct, acquire by purchase, |
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gift, lease, contract, or any other legal means, operate, maintain, |
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repair, improve, or extend water treatment or supply systems as |
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necessary to implement the authority's groundwater reduction plan, |
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including all additions to such systems and all land, improvements, |
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facilities, plants, equipment, appliances, interests in property, |
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water rights or contract rights for water supply, and regional, |
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regulatory, or joint use participation rights, or contract rights |
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needed for, and administrative facilities needed in connection with |
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such systems; |
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(2) enter into contracts of limited or unlimited |
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duration, notwithstanding the provisions of other law or municipal |
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charter provisions to the contrary, with persons inside or outside |
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the authority's boundaries, on terms and conditions the board |
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considers desirable, fair, and advantageous for the exercise of the |
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rights, powers, privileges, authority, and functions contemplated |
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by this Act; |
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(3) allocate water among participants; |
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(4) coordinate water services provided by or among |
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participants; |
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(5) provide wholesale and retail water services to any |
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participant by order, rule, policy, or on open account, without the |
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necessity for execution of a written contract with such |
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participant; |
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(6) store, sell, or reuse water or any by-product from |
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the operations of the authority's water systems; |
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(7) adopt and enforce rules and administrative |
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policies reasonably required to implement Sections 11 through 11M |
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of this Act, including rules governing procedures before the board |
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and regarding implementation, enforcement, and any other matters |
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related to the authority's groundwater reduction plan; and |
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(8) otherwise administer and enforce Sections 11 |
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through 11M of this Act. |
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(b) The authority may not utilize the systems, facilities, |
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or properties developed to implement the authority groundwater |
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reduction plan to provide treated surface water outside of |
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Montgomery County, except as permitted by Subsection (i), Section |
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11F of this Act, or as necessary to serve a participant located in |
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part outside of Montgomery County. |
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(c) Notwithstanding Subdivision (5), Subsection (a) of this |
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section, the authority may not provide retail water service to a |
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person located within the boundaries or certificated area of either |
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a district or municipality or a retail public utility participating |
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in the authority's groundwater reduction plan on the date the |
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authority awards a contract for the construction of, or executes a |
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contract for the acquisition of, water supply facilities to serve |
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that retail user, unless: |
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(1) the district or municipality or the retail public |
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utility consents in writing to the authority's provision of such |
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retail water service; or |
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(2) the retail water user is a regulated user, the |
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authority has provided the district or municipality or retail |
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public utility with written notice of the request for service from |
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the retail water user, the authority has provided the district or |
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municipality or retail public utility with reasonable opportunity |
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to negotiate an agreement for the requested service with the retail |
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water user, and the district or municipality or retail public |
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utility has not entered into an agreement for the requested service |
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with the retail water user on or before the 120th day after the date |
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the authority has provided the district or municipality or retail |
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public utility written notice of the request for service from the |
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retail water user. For purposes of this subsection, the boundaries |
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of a municipality shall include territory within the |
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extraterritorial jurisdiction of the municipality. |
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(d) If a retail water user is added to the boundaries or |
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certificated area of a district or municipality or a retail public |
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utility after the date the authority awards a contract for the |
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construction of, or executes a contract for the acquisition of, |
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water supply facilities to serve that retail water user, and the |
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district or municipality or retail public utility is a participant, |
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the authority may provide retail water service to that retail water |
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user without consent. |
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(e) Except as provided by Subsection (c) of this section, |
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the right and power of the authority to provide or continue the |
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provision of wholesale water service to any participant is not |
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limited, restricted, curtailed, or discontinued by: |
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(1) any part or provision of this section; or |
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(2) the annexation or inclusion within the boundaries, |
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extraterritorial jurisdiction, or service area by a municipality, |
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district, retail public utility, or other person, for full or |
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limited purposes, of all or any portion of the boundaries or service |
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area of any participant. |
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(f) Any local government, district, retail public utility, |
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or other person succeeding to the assets and obligations of a |
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participant, whether by annexation, consolidation, merger, |
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abolition, or otherwise, shall assume the rights, powers, |
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authority, obligations, and indebtedness of such participant under |
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Sections 11 through 11M of this Act. |
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Sec. 11C. INITIAL AREA; INCLUSION IN GROUNDWATER REDUCTION |
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PLAN. (a) The authority shall have jurisdiction to enforce the |
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rights, powers, privileges, authority, and functions contemplated |
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by Sections 11 through 11M of this Act with respect to regulated |
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users located in whole or in part within Montgomery County, except |
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where expressly prohibited by this Act, but only on or after the |
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date such regulated users are included as participants in the |
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authority's groundwater reduction plan. |
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(b) A person that is a regulated user on the effective date |
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of this section may petition to be included in the authority's |
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groundwater reduction plan by filing with the authority a duly |
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authorized and executed petition requesting inclusion. The board |
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shall grant the petition and order the regulated user included in |
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the authority's groundwater reduction plan if the petition includes |
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an accurate legal description of the boundaries of the regulated |
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user's service area, or other documents, descriptions, or maps that |
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sufficiently identify the area proposed to be included in lieu of |
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such legal description, and the petition is filed with the board not |
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later than the 120th day after the effective date of the initial |
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groundwater reduction plan adopted by the authority under Section |
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11E of this Act. Such order shall be adopted not later than the |
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120th day after the last date for filing a petition for inclusion. |
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(c) If a person that is a regulated user on the effective |
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date of this section is not included in the authority's groundwater |
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reduction plan under Subsection (b) of this section, the authority |
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may not include the regulated user in any groundwater reduction |
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plan adopted or implemented by the authority unless the regulated |
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user is subsequently added to the authority's groundwater reduction |
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plan under Section 11D of this Act. |
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(d) After a regulated user is included in the authority's |
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groundwater reduction plan under Subsection (b) of this section, |
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the authority may exclude the regulated user from its groundwater |
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reduction plan, at its sole discretion and on terms and conditions |
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the board considers appropriate, on the filing with the board of a |
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duly authorized and executed petition requesting exclusion. This |
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subsection shall not be construed to limit the power of the |
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authority to exclude a regulated user from its groundwater |
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reduction plan, without the filing of a petition, under Section 11H |
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of this Act. |
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Sec. 11D. ADDITIONS TO GROUNDWATER REDUCTION PLAN. |
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(a) Any person that becomes a regulated user after the period has |
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expired for filing a petition for inclusion under Section 11C of |
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this Act shall become a participant without further action by the |
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authority or such person. The authority and the conservation |
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district may enter into such agreements as may be appropriate to |
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provide information to the authority reasonably necessary to |
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identify and contact such participants. The authority by rule may |
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require a participant to provide the authority with any necessary |
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documents pertaining to the participant's service area and the |
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actual or projected water demands of such service area. |
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(b) A regulated user that was not included in the |
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authority's groundwater reduction plan under Section 11C of this |
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Act may subsequently file with the board a duly authorized and |
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executed petition requesting that all or part of the regulated |
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user's service area be included in the authority's groundwater |
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reduction plan. The petition must include an accurate legal |
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description of the boundaries of the regulated user's service area |
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to be included or other documents, descriptions, or maps that |
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sufficiently identify the area proposed to be included in lieu of |
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such legal description. The authority may grant the petition if, in |
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its sound discretion, the authority determines that: |
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(1) it is feasible from an engineering and economic |
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standpoint to do so; |
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(2) granting the petition will not: |
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(A) result in material increases in costs to the |
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participants in the authority's groundwater reduction plan; |
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(B) result in any material delay in the |
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implementation of the authority's groundwater reduction plan; or |
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(C) expose the authority or any participant to |
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additional construction or financing costs, fines, or penalties or |
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noncompliance with applicable regulatory requirements. |
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(c) The authority may require a regulated user, all or part |
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of whose service area is included in the authority's groundwater |
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reduction plan under Subsection (b) of this section, to pay to the |
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authority, for the benefit of the participants, a reasonable and |
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equitable charge determined by the authority to mitigate or fairly |
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distribute among the participants any additional costs to be |
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incurred by the inclusion of the additional service area in the |
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authority's groundwater reduction plan. If the authority has |
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outstanding or unissued bonds, notes, or other obligations to |
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finance the costs of the authority's provision of water supply |
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facilities and services under the authority's groundwater |
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reduction plan, the petition shall constitute the election and |
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agreement of the petitioning regulated user to assume the regulated |
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user's pro rata share of the principal of and interest on such |
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outstanding or unissued bonds, notes, or other obligations. This |
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subsection shall not apply to an annexation to or expansion of a |
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participant's boundaries, extraterritorial jurisdiction, or |
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service area, as applicable, notwithstanding that such annexation |
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or expansion may include, in whole or in part, territory within or |
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previously within the boundaries or service area of a regulated |
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user that was not included in the authority's groundwater reduction |
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plan under Section 11C of this Act. |
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(d) The authority by rule may require participants to |
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provide the authority with written notice of the effective date of |
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an annexation to or expansion of the regulated user's boundaries or |
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service area, together with copies of any necessary documents, |
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descriptions, maps, and projected or actual water demands of the |
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annexed or expanded boundaries or service area. Except to the |
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extent otherwise provided by rule, order, or written agreement of |
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the authority, the boundary or service area expansion of a |
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participant does not affect: |
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(1) the authority's powers and authority inside or |
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outside the expanded boundary or service area of the participant; |
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(2) the authority's groundwater reduction plan or |
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contracts; or |
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(3) the authority's authority to assess fees, user |
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fees, rates, charges, or special assessments inside or outside the |
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expanded boundaries or service area of the participant. |
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(e) The addition of territory to the authority's groundwater |
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reduction plan under this section does not affect the validity of |
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the authority's bonds, notes, or other obligations authorized, |
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issued, or incurred before or after such addition. |
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Sec. 11E. GROUNDWATER REDUCTION, WATER SUPPLY, |
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CONSERVATION, AND DROUGHT CONTINGENCY PLANS. (a) The authority |
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may wholly or partly develop, prepare, adopt, amend, revise, |
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implement, enforce, manage, or participate in a groundwater |
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reduction plan as necessary, in the discretion of the authority, to |
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facilitate full and timely compliance with applicable conservation |
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district rules, orders, regulations, or requirements. A |
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groundwater reduction plan may: |
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(1) specify the measures to be taken by regulated |
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users to reduce groundwater withdrawals; |
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(2) identify alternative sources of water, including |
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water from the authority, to be provided to regulated users; |
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(3) identify or estimate the rates, terms, and |
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conditions under which alternative sources of water will be |
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provided, which may be changed from time to time as considered |
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necessary by the authority; |
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(4) specify the dates and the extents to which |
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participants must reduce or cease usage of groundwater and accept |
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water from alternative sources, including water from the authority; |
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(5) require conversion or overconversion by regulated |
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users in any designated portion of the plan area to alternative |
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water sources in excess of the minimum requirements imposed by the |
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conservation district, including any applicable groundwater |
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reduction requirements, so long as and to the extent that the |
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conversion or overconversion is necessary or appropriate in |
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implementing the authority's groundwater reduction plan and the |
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costs are apportioned among participants through the authority's |
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fees, user fees, rates, and charges under Section 11F of this Act; |
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(6) provide that the groundwater reduction plan shall |
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be the exclusive groundwater reduction plan that is binding and |
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mandatory on regulated users included in the plan; |
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(7) limit, prohibit, or permit the export of |
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groundwater from, or the importation of water from any source to, |
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participants; |
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(8) require the joint use by one or more participants |
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of the water supply or delivery systems or facilities of a |
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participant to facilitate the delivery of alternative water |
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supplies, but only to the extent feasible without diminishing or |
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impairing the delivery capabilities of the systems or facilities of |
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a participant for its own uses and only upon proper compensation to |
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the participant; |
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(9) include other terms and measures that are |
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consistent with the powers and duties of the authority; and |
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(10) be amended from time to time at the discretion of |
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the authority. |
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(b) The initial groundwater reduction plan of the authority |
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may not be adopted until the later of: |
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(1) the effective date of any final rule, order, |
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regulation, or requirement adopted by the conservation district |
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that imposes groundwater withdrawal reductions applicable to a |
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regulated user; or |
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(2) the effective date of one or more written |
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agreements, each with an initial term of not less than 40 years, |
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that grant the authority the right to receive water supply services |
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from all or substantially all of the remaining permitted yield for |
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municipal use in and to the Lake Conroe Dam and Reservoir Project |
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not then permitted to the authority. |
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(c) Notwithstanding any other provisions of Sections 11 |
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through 11M of this Act, the authority may rescind the adoption of |
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the initial groundwater reduction plan by written order of the |
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board adopted not later than the 240th day or before the 120th day |
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following the adoption of the initial groundwater reduction plan if |
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the authority finds, in its sole discretion, that the |
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implementation of the initial groundwater reduction plan is not |
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practicable or feasible for any reason or will not achieve the |
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purposes of Sections 11 through 11M of this Act. On and after the |
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date of the order of the board rescinding the initial groundwater |
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reduction plan, the authority shall have no obligation to continue |
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to develop or implement a groundwater reduction plan for the |
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benefit of any regulated user, including a regulated user that |
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filed a petition to be included in the authority's groundwater |
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reduction plan under Subsection (b), Section 11C of this Act, or |
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that would otherwise be included in the authority's groundwater |
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reduction plan under Subsection (a), Section 11D of this Act. |
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Written notice of the adoption of an order rescinding adoption of |
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the initial groundwater reduction plan shall be provided within 30 |
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days to each regulated user that filed a petition to be included in |
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the authority's groundwater reduction plan under Section 11C of |
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this Act, but the failure of a regulated user to receive notice |
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shall not obligate the authority to continue to develop or |
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implement a groundwater reduction plan for the benefit of the |
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regulated user. |
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(d) Fees, user fees, rates, charges, and special |
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assessments of the authority may be imposed by the authority as |
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provided by this Act for a regulated user's participation in and |
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benefit derived from the authority's groundwater reduction plan. |
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(e) The authority by rule may develop, prepare, adopt, |
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amend, revise, implement, enforce, and manage a comprehensive water |
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supply plan, water conservation plan, or drought contingency plan |
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for and applicable to participants. |
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Sec. 11F. FEES, USER FEES, RATES, AND CHARGES. (a) The |
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authority may establish fees, user fees, rates, and charges |
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applicable to any participant and make reasonable classifications |
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of participants for purposes of such fees, rates, and charges as are |
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necessary by the authority to implement and enforce the plans, |
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powers, and authority conferred by Sections 11 through 11M of this |
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Act, but the fees, rates, and charges may not be imposed before the |
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last date for the authority to adopt an order granting a petition to |
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be included in the authority's groundwater reduction plan under |
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Subsection (b), Section 11C of this Act. |
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(b) Among other criteria and classifications, the authority |
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may charge a participant a fee or user fee according to the amount |
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of water pumped from the participant's groundwater well. If |
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ownership of a groundwater well changes, both the prior and |
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subsequent well owners are responsible to the authority as |
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participants, jointly and severally, for all fees and user fees |
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imposed by the authority under this Act, and any related penalties |
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and interest, for water pumped from the groundwater well before the |
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change in ownership. |
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(c) The board shall make reasonable efforts to notify each |
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participant, by publication or by written notice, of the date, |
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time, and location of the meeting of the board at which the board |
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intends to adopt a proposed rate, fee, user fee, or charge under |
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this section and the amount of the proposed rate, fee, user fee, or |
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charge. The board's failure to provide actual notice to each |
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participant does not invalidate a rate, fee, user fee, or charge |
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adopted by the board under this section. |
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(d) The board shall exempt from any rate, fee, user fee, or |
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charge under this section persons or classes of groundwater wells |
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that are not subject to any groundwater reduction requirement |
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imposed by the conservation district, but if any such persons or |
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classes of groundwater wells subsequently become subject to a |
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groundwater reduction requirement imposed by the conservation |
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district, the authority may thereafter impose such rate, fee, user |
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fee, or charge. For purposes of this subsection, a person or a |
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groundwater well is subject to a groundwater reduction requirement |
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if the conservation district has adopted or adopts a requirement or |
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rule that withdrawals from the groundwater well, or from the |
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groundwater well and other groundwater wells collectively, be |
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reduced, including a groundwater reduction requirement that does |
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not need to be satisfied until a future date. |
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(e) Notwithstanding Subsection (d) of this section, any |
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person that owns or operates a single groundwater well serving not |
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more than two single-family residential dwellings or units, and any |
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groundwater well in such class, shall be exempt from any rate, fee, |
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user fee, or charge under this section or any special assessment |
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under Section 11G of this Act. The board by rule may exempt any |
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other persons or classes of groundwater wells from any rate, fee, |
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user fee, or charge under this section. |
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(f) The authority may establish fees, user fees, rates, and |
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charges that are sufficient to: |
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(1) achieve water conservation; |
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(2) prevent waste of water; |
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(3) serve as a disincentive to pumping groundwater; |
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(4) develop, implement, or enforce a groundwater |
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reduction plan; |
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(5) accomplish the purposes of Sections 11 through 11M |
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of this Act, including making available alternative water supplies; |
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(6) purchase, lease, reserve, option, or contract for |
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alternative water supplies; |
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(7) enable the authority to meet administrative, |
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operations, and maintenance expenses relating to the authority's |
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groundwater reduction plan; |
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(8) pay the principal of and interest on notes, bonds, |
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and other obligations issued or incurred or to be issued or incurred |
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in connection with the exercise of the authority's rights, powers, |
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privileges, authority, and functions under Sections 11 through 11M |
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of this Act; |
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(9) satisfy all rate covenants relating to the |
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issuance of notes, bonds, and other obligations; and |
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(10) establish, accumulate, maintain, or replenish |
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one or more operating, debt service, contingency, or emergency |
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reserve funds as deemed necessary by the authority. |
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(g) The rates, fees, user fees, and charges of the authority |
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shall at all times be established and imposed in order to equitably |
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apportion the costs of the authority's groundwater reduction plan |
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among the participants, as nearly as practicable on a uniform |
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basis, such that no special advantage or disadvantage is realized |
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by a participant or class of participants because of proximity or |
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access to alternative water supplies of the authority, geographical |
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location, the time of inclusion within the groundwater reduction |
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plan, the nature or extent of the water demands of the participant, |
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or because the participant or class of participants is using |
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groundwater, or alternative water supplies, or both. |
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(h) The authority may also impose rates, fees, user fees, or |
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charges for the importation of water by a participant. |
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(i) To the extent that any fees, user fees, rates, charges, |
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or special assessments collected by the authority from participants |
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in the authority's groundwater reduction plan under this Act are |
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used to pay or reimburse the authority or one or more of its |
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operating divisions for the costs of developing, holding, |
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purchasing, leasing, reserving, optioning, or contracting for |
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alternative water supplies, the first and prior use of such |
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alternative water supplies shall be for the benefit of the |
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participants. Nothing in this Act shall be deemed or construed to |
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limit the right and power of the authority or one or more of its |
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other operating divisions to sell, option, or reserve water |
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supplies that in the judgment of the authority are surplus to the |
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needs of the participants, on a temporary, seasonal, periodic, or |
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permanent basis, to other persons, so long as any net income or |
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revenues from such sale, optioning, or reservation are first used |
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to reimburse the participants for any actual costs, expenses, or |
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carrying costs and interest paid by or on behalf of the participants |
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for such water supplies. |
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(j) The rates, fees, user fees, and charges imposed by the |
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authority under this section shall be at all times the lowest |
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charges which are: |
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(1) consistent with good management practices by the |
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authority; |
|
(2) necessary and proper to pay or provide for full and |
|
timely payment of the items described in Subsection (f) of this |
|
section; |
|
(3) consistent with the authority's statutory and |
|
constitutional duties and responsibilities; and |
|
(4) just, reasonable, and nondiscriminatory. |
|
(k) The charges imposed by the authority under this section |
|
shall be reviewed and adjusted from time to time by the authority in |
|
order to ensure that the charges are not in excess of the needs of |
|
the authority for the purposes of this section and that, other than |
|
amounts properly allocable to the payment of the general and |
|
administrative expenses of the authority relating to the |
|
groundwater reduction plan, such charges will not be used for any |
|
other corporate purpose of the authority. |
|
Sec. 11G. ASSESSMENTS. (a) The board may undertake |
|
improvement projects or services that confer a special benefit on |
|
all or a defined part of the service area of one or more |
|
participants and may impose special assessments on property in the |
|
defined area, including property of a local government, based on |
|
the benefit conferred by the improvement project or service, to pay |
|
all or part of the costs of the project or service. The authority |
|
may finance with special assessments any improvement project or |
|
service authorized by this Act or other law, including water |
|
delivery systems or facilities or water supplies for recreational, |
|
environmental, aesthetic, or other nonconsumptive uses. |
|
(b) Services or improvement projects may be financed with |
|
special assessments only after the board holds a public hearing on |
|
the advisability of the improvement project or service and the |
|
proposed assessments. |
|
(c) The board shall publish notice of the hearing in a |
|
newspaper or newspapers with general circulation in Montgomery |
|
County. The publication must be made not later than the 30th day |
|
before the date of the hearing. |
|
(d) Notice provided under this section must include: |
|
(1) the time and place of the hearing; |
|
(2) the general nature of the proposed improvement |
|
project or service; |
|
(3) the estimated cost of the improvement project or |
|
service, including projected interest and associated financing |
|
costs; and |
|
(4) the proposed method of assessment. |
|
(e) Written notice containing the information required by |
|
Subsection (d) of this section shall be sent by certified mail, |
|
return receipt requested, not later than the 30th day before the |
|
date of the hearing, to each participant affected by such proposed |
|
assessment. |
|
(f) Following a hearing conducted by the board on a proposed |
|
improvement project or service, the board shall make written |
|
findings and conclusions relating to the advisability of the |
|
improvement project or service, the nature of the improvement |
|
project or service, the estimated costs, and the area benefited. |
|
(g) After conclusion of a hearing conducted by a hearings |
|
examiner on a proposed improvement project or service, the hearings |
|
examiner shall file with the board a written report of the |
|
examiner's findings and conclusions. The board may act upon such |
|
findings and conclusions at any meeting of the board at which notice |
|
of the meeting is given as provided by Chapter 551, Government Code, |
|
without the necessity for further notice. |
|
(h) At adjournment of a hearing on proposed assessments, or |
|
after consideration of a hearings examiner's findings and |
|
conclusions on the proposed assessments, the board shall hear and |
|
rule on all objections to each proposed assessment. After the board |
|
hears and rules on such objections, the board, by order: |
|
(1) shall fix the amount of and impose the assessments |
|
as special assessments on each affected property; |
|
(2) shall specify the method of payment of the |
|
assessments; and |
|
(3) may provide that such assessments, including |
|
interest, be paid in periodic installments or be subject to |
|
prepayment charges if prepaid. |
|
(i) Periodic installment payments of assessments must be in |
|
amounts sufficient to meet all costs for the associated improvement |
|
projects or services and must continue in effect for the period |
|
required to fully and timely pay for the services to be rendered or |
|
any bonds, notes, or other obligations issued or incurred by the |
|
authority to finance any associated improvement projects. The |
|
board may provide interest charges or penalties for failure to make |
|
timely payment and may impose a fee to cover delinquencies and |
|
expenses of collection. |
|
(j) The board shall equitably apportion the cost of an |
|
improvement project or services, to be assessed against the |
|
property according to the special benefits that accrue to the |
|
property because of the improvement project or services. Among |
|
other classifications of benefits received, the board may assess |
|
costs according to the number of gallons of groundwater pumped from |
|
groundwater wells that are within or that serve such property and |
|
are subject to a groundwater reduction requirement imposed by the |
|
conservation district. |
|
(k) A person that becomes a participant after the authority |
|
has imposed assessments may waive the right to notice and an |
|
assessment hearing and may agree to the imposition and payment of |
|
assessments at an agreed rate. A participant may waive the right to |
|
notice and an assessment hearing for territory within its |
|
boundaries or service area added to the authority's groundwater |
|
reduction plan and may agree to the imposition and payment of |
|
assessments at an agreed rate. |
|
(l) The board shall provide for the preparation of an |
|
assessment roll showing the assessments against each property and |
|
the board's basis for the assessment. The assessment roll shall be: |
|
(1) filed with the secretary of the board or another |
|
officer who performs similar functions; and |
|
(2) open for public inspection. |
|
(m) After notice and hearing in the manner required for an |
|
original assessment, the board may make supplemental assessments to |
|
correct omissions or mistakes or to address changed circumstances |
|
relating to the total costs of the improvement project or service or |
|
to covering delinquencies or costs of collection. |
|
(n) The board may not impose or enforce a special assessment |
|
under this section unless: |
|
(1) one or more participants request in writing that |
|
the authority undertake an improvement project or services that |
|
confer a special benefit on the requesting participant or |
|
participants; or |
|
(2) one or more participants have failed to commence |
|
construction of facilities or provide for equipment necessary to |
|
accept water from alternative sources by a date that is 120 days or |
|
more after written notice from the authority of the availability of |
|
such water from alternative sources and of the rules of the |
|
authority requiring such action. |
|
Sec. 11H. INTEREST AND PENALTIES; COLLECTIONS; LIEN. |
|
(a) The board may require the payment of interest on any late or |
|
unpaid fees, user fees, rates, charges, and special assessments due |
|
the authority, but the interest rate may not exceed the interest |
|
rate permitted by Section 2251.025, Government Code. The board may |
|
also impose penalties for the failure to make a complete or timely |
|
payment to the authority. In addition, the board may exclude a |
|
participant, or the service area or territory or a groundwater well |
|
owned or controlled by a participant, from the authority's |
|
groundwater reduction plan for failure to make a complete or timely |
|
payment to the authority. The authority is entitled to reasonable |
|
attorney's fees incurred by the authority in enforcing its rules or |
|
in collecting any delinquent fees, user fees, rates, charges, and |
|
special assessments and any related penalties and interest. |
|
(b) In addition to being the legal responsibility of a |
|
participant or well owner, the fees, user fees, rates, charges, and |
|
special assessments imposed by the authority under Sections 11F and |
|
11G of this Act, any related penalties and interest, and collection |
|
expenses and reasonable attorney's fees incurred by the authority: |
|
(1) are a first and prior lien against the groundwater |
|
well to which they apply; and |
|
(2) are superior to any other lien or claim, other than |
|
a lien or claim for county, school district, or municipal ad valorem |
|
taxes. |
|
(c) A lien under this section is effective from the date of |
|
the resolution or order of the board imposing the fee, user fee, |
|
rate, charge, or special assessment until paid. The board may |
|
enforce the lien in the same manner that a municipal utility |
|
district operating under Chapters 49 and 54, Water Code, may |
|
enforce an ad valorem tax lien against real property. |
|
Sec. 11I. ADMINISTRATIVE PENALTY; INJUNCTION. (a) A |
|
person who violates a rule or order of the authority imposed under |
|
Sections 11 through 11M of this Act is subject to an administrative |
|
penalty, payable to the authority: |
|
(1) in an amount of not more than $5,000, as determined |
|
by the board, for each violation or each day of a continuing |
|
violation; or |
|
(2) in an amount in excess of $5,000, as determined by |
|
the board, necessary to recoup any administrative fines or |
|
penalties imposed against the authority resulting from one or more |
|
violations of the rules or orders of the authority by one or more |
|
participants. |
|
(b) The authority may bring an action to recover the penalty |
|
in a district court in the county where the violation occurred. |
|
(c) The authority may bring an action for injunctive relief |
|
in a district court in the county where a violation of a rule or |
|
order of the authority occurs or is threatened to occur. The court |
|
may grant to the authority, without bond or other undertaking, a |
|
prohibitory or mandatory injunction, as warranted by the facts, |
|
including a temporary restraining order, temporary injunction, or |
|
permanent injunction. |
|
(d) The authority may bring an action for an administrative |
|
penalty and injunctive relief in the same proceeding. |
|
Sec. 11J. WAIVER OF IMMUNITY. Immunity from suit, |
|
judgment, or liability of any local government participating in the |
|
authority's groundwater reduction plan is hereby waived, but only |
|
to the limited extent necessary to permit the authority to exercise |
|
and enforce the rights, powers, privileges, and authority granted |
|
in Sections 11 through 11M of this Act against any such local |
|
government. |
|
Sec. 11K. ELIGIBILITY FOR FINANCIAL ASSISTANCE. In |
|
addition to any other financial assistance program for which the |
|
authority may be eligible, the rights, powers, privileges, and |
|
authority conferred by Sections 11 through 11M of this Act shall be |
|
construed as authorizing the authority to receive financial |
|
assistance through the Groundwater District Loan Program |
|
administered by the Texas Water Development Board. |
|
Sec. 11L. PUBLIC HEARINGS. The board by rule may establish |
|
the procedures for conducting public hearings and whether any |
|
hearing shall be conducted by the board or a hearings examiner. Any |
|
public hearing may be adjourned from time to time to a date, time, |
|
and location specified upon adjournment, without the necessity for |
|
further notice. |
|
Sec. 11M. OPERATING DIVISION. (a) To facilitate the |
|
implementation of a groundwater reduction plan, the authority |
|
shall: |
|
(1) establish and maintain a separate operating |
|
division of the authority with separate books of account that shall |
|
be audited annually; |
|
(2) contract for, lease, or purchase, by and for the |
|
separate operating division, services, land, equipment, and |
|
facilities, including administrative and management services and |
|
facilities, and water and water byproducts, from the authority or |
|
one or more other operating divisions of the authority or from other |
|
persons; and |
|
(3) allocate to the separate operating division a |
|
proportional share of the direct and indirect costs of the |
|
authority's general and administrative, managerial, accounting, |
|
legal, fiscal, clerical, human resources, support services, and |
|
technical services. |
|
(b) The separate operating division shall be operated for |
|
the exclusive benefit of the participants in the authority's |
|
groundwater reduction plan and not for the use or benefit of any |
|
water user outside the plan area, on a break-even basis, without |
|
profit or loss to the separate operating division, such that, |
|
except as provided in Subsection (i), Section 11F of this Act, the |
|
assets, income, responsibilities, liabilities, and debts of the |
|
separate operating division are not a charge against, an obligation |
|
or responsibility of, or an asset of or income source to any other |
|
operating division of the authority. Nothing in this subsection |
|
shall be deemed or construed to limit or restrict the right and |
|
power of the authority or one or more of its other operating |
|
divisions to: |
|
(1) prepare, maintain, audit, or report its financial |
|
position on a consolidated basis with one or more other operating |
|
divisions of the authority; |
|
(2) sell untreated water to such separate operating |
|
division from one or more other operating divisions of the |
|
authority or from other sources at generally prevailing and |
|
applicable rates adopted by the authority; or |
|
(3) recover or be reimbursed the costs described in |
|
Subsection (a) of this section. |
|
SECTION 2. Sections 10, 10a, 10b, 10c, and 10d, Chapter 426, |
|
Acts of the 45th Legislature, Regular Session, 1937, are repealed. |
|
SECTION 3. Chapter 426, Acts of the 45th Legislature, |
|
Regular Session, 1937, is amended by adding Section 10A to read as |
|
follows: |
|
Sec. 10A. PUBLIC SECURITIES. (a) In this section: |
|
(1) "Public security" has the meaning assigned by |
|
Chapter 1201, Government Code. |
|
(2) "Credit agreement," "security agreement," and |
|
"security interest" have the meanings assigned by Chapter 1208, |
|
Government Code. |
|
(b) The authority is authorized to issue, sell, and deliver |
|
its public securities in the manner provided by this section or |
|
other law, including Chapter 1371, Government Code, to finance or |
|
pay for any project, improvement, program, plan, or purpose of the |
|
authority or to refund or refinance any public security. |
|
(c) Public securities of the authority may be sold by the |
|
board or by delegation of authority to an officer or employee of the |
|
authority, at public or private sale, in such form, at such price, |
|
on such terms and conditions, and at such interest rate or rates, |
|
whether fixed, variable, floating, adjustable, or otherwise, as the |
|
board may determine appropriate, provided the net effective |
|
interest rate does not exceed the maximum rate allowed by law. |
|
(d) Without the necessity for an election, public |
|
securities of the authority may be made payable from all or any |
|
designated portion or combination of any revenues, receipts, fees, |
|
user fees, rates, charges, special assessments, contract revenues, |
|
income, proceeds of refunding public securities, or funds from any |
|
other source of the authority other than ad valorem taxes. Public |
|
securities of the authority payable in whole or in part from ad |
|
valorem taxes may be issued only after approval by a majority of the |
|
qualified electors of all or a defined portion of the service area |
|
of the authority voting at an election held for that purpose. The |
|
board may call and conduct elections within all or a defined portion |
|
of the service area of the authority for that purpose. |
|
(e) Public securities of the authority may be secured by |
|
means of a security agreement or credit agreement, or both, and with |
|
such security interest or interests, other than a mortgage interest |
|
on real property, and with such parity or priority of pledge and |
|
lien as the board may determine to be appropriate. |
|
SECTION 4. The repeal of laws under Section 2 of this Act |
|
shall not affect the validity, enforceability, security, priority |
|
of lien, or other terms and conditions of any bonds, notes, or |
|
obligations of the San Jacinto River Authority issued or incurred |
|
prior to the effective date of this Act. |
|
SECTION 5. The legislature finds that proper and legal |
|
notice of the intention to introduce this Act, setting forth the |
|
general substance of this Act, has been published as provided by |
|
law, and such notice and a copy of this Act have been furnished to |
|
all persons, agencies, officials, or entities to which they are |
|
required to be furnished by the constitution and laws of this state, |
|
including the governor, who has submitted the notice and Act to the |
|
Texas Commission on Environmental Quality, and that the Texas |
|
Commission on Environmental Quality has filed its recommendations |
|
relating to this Act with the governor, lieutenant governor, and |
|
speaker of the house of representatives within the required time, |
|
and that all requirements of the constitution and laws of this state |
|
and the rules and procedures of the legislature with respect to the |
|
notice, introduction, and passage of this Act have been fulfilled |
|
and accomplished. |
|
SECTION 6. The legislature finds, determines, and declares |
|
its intent that: |
|
(1) the conservation and preservation of groundwater |
|
resources in Montgomery County is essential to the economic |
|
well-being and public health of the state as a whole; |
|
(2) effective measures to reduce groundwater |
|
withdrawals by large-volume groundwater users in Montgomery County |
|
must be implemented immediately; |
|
(3) the withdrawal of groundwater from shallow |
|
aquifers for domestic or household use by individuals has no |
|
significant negative impact on groundwater resources in Montgomery |
|
County; and |
|
(4) under no circumstances shall this Act be |
|
interpreted, deemed, or construed to apply to or to authorize the |
|
reduction of groundwater withdrawal by any person that owns or |
|
operates a single groundwater well serving not more than two |
|
single-family residential dwellings or units. |
|
SECTION 7. The provisions of this Act are severable. If any |
|
word, phrase, clause, sentence, section, provision, or part of this |
|
Act is held invalid or unconstitutional, it shall not affect the |
|
validity of the remaining portions, and it is declared to be the |
|
legislative intent that this Act would have been passed as to the |
|
remaining portions regardless of the invalidity of any part. |
|
SECTION 8. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2009. |