|  | 
      
        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | 
      
        |  | relating to the review of groundwater conservation districts by the | 
      
        |  | state auditor. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Section 35.018(b), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (b)  The report must include: | 
      
        |  | (1)  the names and locations of all priority | 
      
        |  | groundwater management areas and districts created or attempted to | 
      
        |  | be created on or after November 5, 1985, the effective date of | 
      
        |  | Chapter 133 (H.B. No. 2), Acts of the 69th Legislature, Regular | 
      
        |  | Session, 1985; | 
      
        |  | (2)  the authority under which each priority | 
      
        |  | groundwater management area and district was proposed for creation; | 
      
        |  | (3)  a detailed analysis of each election held to | 
      
        |  | confirm the creation of a district, including analysis of election | 
      
        |  | results, possible reasons for the success or failure to confirm the | 
      
        |  | creation of a district, and the possibility for future voter | 
      
        |  | approval of districts in areas in which attempts to create | 
      
        |  | districts failed; | 
      
        |  | (4)  a detailed analysis of the activities of each | 
      
        |  | district created, including those districts which are implementing | 
      
        |  | management plans certified under Section 36.1072; | 
      
        |  | (5)  a report on [ audits performed on districts under  | 
      
        |  | Section 36.302 and] remedial actions taken under Section 36.303; | 
      
        |  | (6)  recommendations for changes in this chapter and | 
      
        |  | Chapter 36 that will facilitate the creation of priority | 
      
        |  | groundwater management areas and the creation and operation of | 
      
        |  | districts; | 
      
        |  | (7)  a report on educational efforts in newly | 
      
        |  | designated priority groundwater management areas; and | 
      
        |  | (8)  any other information and recommendations that the | 
      
        |  | commission considers relevant. | 
      
        |  | SECTION 2.  Section 36.061(b), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (b)  The state auditor may conduct a financial audit [ the  | 
      
        |  | records] of any district if the state auditor determines that the | 
      
        |  | audit is necessary. | 
      
        |  | SECTION 3.  Section 36.1072(f), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (f)  If the executive administrator does not approve the | 
      
        |  | district's management plan, the executive administrator shall | 
      
        |  | provide to the district, in writing, the reasons for the | 
      
        |  | action.  Not later than the 180th day after the date a district | 
      
        |  | receives notice that its management plan has not been approved, the | 
      
        |  | district may submit a revised management plan for review and | 
      
        |  | approval.  The executive administrator's decision may be appealed | 
      
        |  | to the development board.  If the development board decides not to | 
      
        |  | approve the district's management plan on appeal, the district may | 
      
        |  | request that the conflict be mediated.  The district and the board | 
      
        |  | may seek the assistance of the Center for Public Policy Dispute | 
      
        |  | Resolution at The University of Texas School of Law or an | 
      
        |  | alternative dispute resolution system established under Chapter | 
      
        |  | 152, Civil Practice and Remedies Code, in obtaining a qualified | 
      
        |  | impartial third party to mediate the conflict.  The cost of the | 
      
        |  | mediation services must be specified in the agreement between the | 
      
        |  | parties and the Center for Public Policy Dispute Resolution or the | 
      
        |  | alternative dispute resolution system.  If the parties do not | 
      
        |  | resolve the conflict through mediation, the decision of the | 
      
        |  | development board not to approve the district's management plan may | 
      
        |  | be appealed to a district court in Travis County.  Costs for the | 
      
        |  | appeal shall be set by the court hearing the appeal.  An appeal | 
      
        |  | under this subsection is by trial de novo.  The commission shall | 
      
        |  | not take enforcement action against a district under Subchapter I | 
      
        |  | until the latest of the expiration of the 180-day period, the date | 
      
        |  | the development board has taken final action withholding approval | 
      
        |  | of a revised management plan, the date the mediation is completed, | 
      
        |  | or the date a final judgment upholding the board's decision is | 
      
        |  | entered by a district court.  An enforcement action may not be | 
      
        |  | taken against a district by the commission [ or the state auditor] | 
      
        |  | under Subchapter I because the district's management plan and the | 
      
        |  | approved regional water plan are in conflict while the parties are | 
      
        |  | attempting to resolve the conflict before the development board, in | 
      
        |  | mediation, or in court.  Rules of the district continue in full | 
      
        |  | force and effect until all appeals under this subsection have been | 
      
        |  | exhausted and the final judgment is adverse to the district. | 
      
        |  | SECTION 4.  Section 36.303(a), Water Code, is amended to | 
      
        |  | read as follows: | 
      
        |  | (a)  If Section [ 36.108,] 36.301 or 36.3011[, or 36.302(f)] | 
      
        |  | applies, the commission, after notice and hearing in accordance | 
      
        |  | with Chapter 2001, Government Code, shall take action the | 
      
        |  | commission considers appropriate, including: | 
      
        |  | (1)  issuing an order requiring the district to take | 
      
        |  | certain actions or to refrain from taking certain actions; | 
      
        |  | (2)  dissolving the board in accordance with Sections | 
      
        |  | 36.305 and 36.307 and calling an election for the purpose of | 
      
        |  | electing a new board; | 
      
        |  | (3)  requesting the attorney general to bring suit for | 
      
        |  | the appointment of a receiver to collect the assets and carry on the | 
      
        |  | business of the groundwater conservation district; or | 
      
        |  | (4)  dissolving the district in accordance with | 
      
        |  | Sections 36.304, 36.305, and 36.308. | 
      
        |  | SECTION 5.  Section 36.302, Water Code, is repealed. | 
      
        |  | SECTION 6.  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, 2015. | 
      
        |  |  | 
      
        |  | * * * * * |