83R14052 JAM-F
 
  By: Ritter H.B. No. 2720
 
  Substitute the following for H.B. No. 2720:
 
  By:  Callegari C.S.H.B. No. 2720
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the applicability of the law governing emergency
  authorizations by the Texas Commission on Environmental Quality for
  the use of state water to certain emergency orders concerning water
  rights issued by the executive director of the commission.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 11.053, Water Code, is
  amended to read as follows:
         Sec. 11.053.  COMMISSION AUTHORITY TO SUSPEND OR ADJUST
  [EMERGENCY ORDER CONCERNING] WATER RIGHTS DURING PERIODS OF DROUGHT
  OR WATER SHORTAGE.
         SECTION 2.  Section 11.053(a), Water Code, is amended to
  read as follows:
         (a)  During a period of drought or other emergency shortage
  of water, as defined by commission rule, the executive director by
  order may, in accordance with the priority of water rights
  established by Section 11.027:
               (1)  temporarily suspend the right of any person who
  holds a water right to use the water; and
               (2)  temporarily adjust the diversions of water by
  water rights holders to address an imminent hazard to the health,
  safety, or welfare of the public.
         SECTION 3.  The heading to Section 11.139, Water Code, is
  amended to read as follows:
         Sec. 11.139.  REQUEST TO TRANSFER WATER TEMPORARILY
  [EMERGENCY AUTHORIZATIONS].
         SECTION 4.  Section 11.139, Water Code, is amended by
  amending Subsections (b), (h), and (j) and adding Subsection (m) to
  read as follows:
         (b)  A person desiring to obtain an emergency authorization
  to transfer water temporarily under Subsection (h) [this section]
  shall submit to the commission a sworn application containing the
  following information:
               (1)  a description of the condition of emergency
  justifying the granting of the emergency authorization;
               (2)  a statement setting forth facts which support the
  findings required under this section;
               (3)  an estimate of the dates on which the proposed
  authorization should begin and end;
               (4)  a description of the action sought and the
  activity proposed to be allowed, mandated, or prohibited; and
               (5)  any other statements or information required by
  the commission.
         (h)  The commission may grant an emergency authorization
  under this section for the temporary transfer and use of all or part
  of a permit, certified filing, or certificate of adjudication for
  other than domestic or municipal use to a retail or wholesale water
  supplier for public health and safety purposes. In addition to the
  requirements contained in Subsection (b) [of this section], the
  commission may direct that the applicant will timely pay the
  amounts for which the applicant may be potentially liable under
  Subsection (j) [of this section] and to the extent authorized by law
  will fully indemnify and hold harmless the state, the executive
  director, and the commission from any and all liability for the
  authorization sought. The commission may order bond or other
  surety in a form acceptable to the commission as a condition for
  such emergency authorization. The commission may not grant an
  emergency authorization under this section which would cause a
  violation of a federal regulation. The commission may not grant an
  emergency authorization under this subsection until a method for
  calculating and remitting the compensation due under Subsection (j)
  has been agreed on by the person to be granted an emergency
  authorization for the temporary transfer and the holder of the
  water right or the water right holder's agent or lessee from whom
  the use is to be transferred.
         (j)  The person granted an emergency authorization for a
  temporary transfer under Subsection (h) [of this section] is liable
  to the holder of the water right [owner] and the water right
  holder's [owner's] agent or lessee from whom the use is transferred
  for the fair market value of the water transferred as well as for
  any damages caused by the transfer of use. If, within 60 days of the
  termination of the authorization, the parties do not agree on the
  amount due, or if full payment is not made, either party may file a
  complaint with the commission to determine the amount due. The
  commission may use dispute resolution procedures for a complaint
  filed under this subsection. After exhausting all administrative
  remedies under this subsection, an owner from whom the use is
  transferred may file suit to recover or determine the amount due in
  a district court in the county where the owner resides or has its
  headquarters. The prevailing party in a suit filed under this
  subsection is entitled to recover court costs and reasonable
  attorney's fees.
         (m)  This section does not apply to a suspension or
  adjustment ordered by the executive director under Section 11.053.
         SECTION 5.  This Act takes effect September 1, 2013.