Texas 2009 - 81st Regular

Texas Senate Bill SB2489 Compare Versions

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1	1	By: Williams S.B. No. 2489
2	2	(In the Senate - Filed April 2, 2009; April 2, 2009, read
3	3	first time and referred to Committee on Natural Resources;
4	4	April 28, 2009, reported favorably by the following vote: Yeas 10,
5	5	Nays 0; April 28, 2009, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the authority of the San Jacinto River Authority to
11	11	implement a groundwater reduction plan for the conservation of
12	12	groundwater and the reduction of groundwater withdrawals in
13	13	Montgomery County, and to issue bonds of the authority; providing
14	14	administrative penalties.
15	15	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
16	16	SECTION 1. Chapter 426, Acts of the 45th Legislature,
17	17	Regular Session, 1937, is amended by adding Sections 11 through 11M
18	18	to read as follows:
19	19	Sec. 11. GROUNDWATER REDUCTION PLANNING AUTHORITY.
20	20	Consistent with the purposes of Section 59, Article XVI, Texas
21	21	Constitution, and in addition to all rights, powers, privileges,
22	22	authority, and functions conferred by other sections of this Act,
23	23	the authority is authorized to provide for the conservation,
24	24	preservation, protection, recharge, and prevention of waste of
25	25	groundwater and for the reduction of groundwater withdrawals by
26	26	developing, implementing, and enforcing a groundwater reduction
27	27	plan to facilitate compliance with the applicable rules, orders,
28	28	regulations, or requirements of the Lone Star Groundwater
29	29	Conservation District. If the authority determines to exercise the
30	30	powers and authority described by Sections 11 through 11M of this
31	31	Act and to implement a groundwater reduction plan for all or
32	32	substantially all of Montgomery County, the authority shall have
33	33	the continuing duty and responsibility to implement and enforce
34	34	such plan, including the responsibility to develop sufficient
35	35	alternative water supply resources consistent with the purposes
36	36	described in this section, subject to the limitations of
37	37	engineering, financial, and legal feasibility.
38	38	Sec. 11A. DEFINITIONS. In Sections 11 through 11M of this
39	39	Act:
40	40	(1) "Authority" means the San Jacinto River Authority.
41	41	(2) "Board" means the board of directors of the
42	42	authority.
43	43	(3) "Conservation district" means the Lone Star
44	44	Groundwater Conservation District.
45	45	(4) "District" means any district or authority created
46	46	under Sections 52(b)(1) and (2), Article III, or Section 59,
47	47	Article XVI, Texas Constitution, regardless of the manner of
48	48	creation, other than the conservation district, a navigation
49	49	district, a port authority, or a district that does not have legal
50	50	authority to provide retail water service.
51	51	(5) "Groundwater reduction plan" means a plan adopted
52	52	or implemented by the authority to supply water, reduce reliance on
53	53	groundwater, control groundwater pumping or usage by regulated
54	54	users, or restrict, allocate, or require water usage among
55	55	regulated users in order to fully and timely comply with or exceed
56	56	requirements imposed by the conservation district, including any
57	57	applicable groundwater reduction requirements and any related
58	58	water supply plan, water conservation plan, or drought contingency
59	59	plan of the authority.
60	60	(6) "Local government" means a municipality, county,
61	61	district, or other political subdivision of this state or a
62	62	combination of two or more of those entities.
63	63	(7) "Participant" means a regulated user
64	64	participating in the authority's groundwater reduction plan.
65	65	(8) "Person" means an individual, corporation,
66	66	organization, government or governmental subdivision or agency,
67	67	district, local government, business trust, estate, trust,
68	68	partnership, association, and any other legal entity.
69	69	(9) "Regulated user" means a person located in whole
70	70	or in part, or with a service area, certificated area, or boundaries
71	71	located in whole or in part, in Montgomery County that is subject to
72	72	any rule, order, regulation, or requirement of the conservation
73	73	district imposing groundwater withdrawal reductions, except for
74	74	any person that owns or operates a single groundwater well serving
75	75	not more than two single-family residential dwellings or units.
76	76	Sec. 11B. ADDITIONAL POWERS AND DUTIES. (a) In
77	77	furtherance of Section 11 of this Act and in addition to all rights,
78	78	powers, privileges, authority, and functions conferred by other
79	79	sections of this Act, the authority is authorized to take any and
80	80	all actions necessary or convenient to:
81	81	(1) design, finance, construct, acquire by purchase,
82	82	gift, lease, contract, or any other legal means, operate, maintain,
83	83	repair, improve, or extend water treatment or supply systems as
84	84	necessary to implement the authority's groundwater reduction plan,
85	85	including all additions to such systems and all land, improvements,
86	86	facilities, plants, equipment, appliances, interests in property,
87	87	water rights or contract rights for water supply, and regional,
88	88	regulatory, or joint use participation rights, or contract rights
89	89	needed for, and administrative facilities needed in connection with
90	90	such systems;
91	91	(2) enter into contracts of limited or unlimited
92	92	duration, notwithstanding the provisions of other law or municipal
93	93	charter provisions to the contrary, with persons inside or outside
94	94	the authority's boundaries, on terms and conditions the board
95	95	considers desirable, fair, and advantageous for the exercise of the
96	96	rights, powers, privileges, authority, and functions contemplated
97	97	by this Act;
98	98	(3) allocate water among participants;
99	99	(4) coordinate water services provided by or among
100	100	participants;
101	101	(5) provide wholesale and retail water services to any
102	102	participant by order, rule, policy, or on open account, without the
103	103	necessity for execution of a written contract with such
104	104	participant;
105	105	(6) store, sell, or reuse water or any by-product from
106	106	the operations of the authority's water systems;
107	107	(7) adopt and enforce rules and administrative
108	108	policies reasonably required to implement Sections 11 through 11M
109	109	of this Act, including rules governing procedures before the board
110	110	and regarding implementation, enforcement, and any other matters
111	111	related to the authority's groundwater reduction plan; and
112	112	(8) otherwise administer and enforce Sections 11
113	113	through 11M of this Act.
114	114	(b) The authority may not utilize the systems, facilities,
115	115	or properties developed to implement the authority groundwater
116	116	reduction plan to provide treated surface water outside of
117	117	Montgomery County, except as permitted by Subsection (i), Section
118	118	11F of this Act, or as necessary to serve a participant located in
119	119	part outside of Montgomery County.
120	120	(c) Notwithstanding Subdivision (5), Subsection (a) of this
121	121	section, the authority may not provide retail water service to a
122	122	person located within the boundaries or certificated area of either
123	123	a district or municipality or a retail public utility participating
124	124	in the authority's groundwater reduction plan on the date the
125	125	authority awards a contract for the construction of, or executes a
126	126	contract for the acquisition of, water supply facilities to serve
127	127	that retail user, unless:
128	128	(1) the district or municipality or the retail public
129	129	utility consents in writing to the authority's provision of such
130	130	retail water service; or
131	131	(2) the retail water user is a regulated user, the
132	132	authority has provided the district or municipality or retail
133	133	public utility with written notice of the request for service from
134	134	the retail water user, the authority has provided the district or
135	135	municipality or retail public utility with reasonable opportunity
136	136	to negotiate an agreement for the requested service with the retail
137	137	water user, and the district or municipality or retail public
138	138	utility has not entered into an agreement for the requested service
139	139	with the retail water user on or before the 120th day after the date
140	140	the authority has provided the district or municipality or retail
141	141	public utility written notice of the request for service from the
142	142	retail water user. For purposes of this subsection, the boundaries
143	143	of a municipality shall include territory within the
144	144	extraterritorial jurisdiction of the municipality.
145	145	(d) If a retail water user is added to the boundaries or
146	146	certificated area of a district or municipality or a retail public
147	147	utility after the date the authority awards a contract for the
148	148	construction of, or executes a contract for the acquisition of,
149	149	water supply facilities to serve that retail water user, and the
150	150	district or municipality or retail public utility is a participant,
151	151	the authority may provide retail water service to that retail water
152	152	user without consent.
153	153	(e) Except as provided by Subsection (c) of this section,
154	154	the right and power of the authority to provide or continue the
155	155	provision of wholesale water service to any participant is not
156	156	limited, restricted, curtailed, or discontinued by:
157	157	(1) any part or provision of this section; or
158	158	(2) the annexation or inclusion within the boundaries,
159	159	extraterritorial jurisdiction, or service area by a municipality,
160	160	district, retail public utility, or other person, for full or
161	161	limited purposes, of all or any portion of the boundaries or service
162	162	area of any participant.
163	163	(f) Any local government, district, retail public utility,
164	164	or other person succeeding to the assets and obligations of a
165	165	participant, whether by annexation, consolidation, merger,
166	166	abolition, or otherwise, shall assume the rights, powers,
167	167	authority, obligations, and indebtedness of such participant under
168	168	Sections 11 through 11M of this Act.
169	169	Sec. 11C. INITIAL AREA; INCLUSION IN GROUNDWATER REDUCTION
170	170	PLAN. (a) The authority shall have jurisdiction to enforce the
171	171	rights, powers, privileges, authority, and functions contemplated
172	172	by Sections 11 through 11M of this Act with respect to regulated
173	173	users located in whole or in part within Montgomery County, except
174	174	where expressly prohibited by this Act, but only on or after the
175	175	date such regulated users are included as participants in the
176	176	authority's groundwater reduction plan.
177	177	(b) A person that is a regulated user on the effective date
178	178	of this section may petition to be included in the authority's
179	179	groundwater reduction plan by filing with the authority a duly
180	180	authorized and executed petition requesting inclusion. The board
181	181	shall grant the petition and order the regulated user included in
182	182	the authority's groundwater reduction plan if the petition includes
183	183	an accurate legal description of the boundaries of the regulated
184	184	user's service area, or other documents, descriptions, or maps that
185	185	sufficiently identify the area proposed to be included in lieu of
186	186	such legal description, and the petition is filed with the board not
187	187	later than the 120th day after the effective date of the initial
188	188	groundwater reduction plan adopted by the authority under Section
189	189	11E of this Act. Such order shall be adopted not later than the
190	190	120th day after the last date for filing a petition for inclusion.
191	191	(c) If a person that is a regulated user on the effective
192	192	date of this section is not included in the authority's groundwater
193	193	reduction plan under Subsection (b) of this section, the authority
194	194	may not include the regulated user in any groundwater reduction
195	195	plan adopted or implemented by the authority unless the regulated
196	196	user is subsequently added to the authority's groundwater reduction
197	197	plan under Section 11D of this Act.
198	198	(d) After a regulated user is included in the authority's
199	199	groundwater reduction plan under Subsection (b) of this section,
200	200	the authority may exclude the regulated user from its groundwater
201	201	reduction plan, at its sole discretion and on terms and conditions
202	202	the board considers appropriate, on the filing with the board of a
203	203	duly authorized and executed petition requesting exclusion. This
204	204	subsection shall not be construed to limit the power of the
205	205	authority to exclude a regulated user from its groundwater
206	206	reduction plan, without the filing of a petition, under Section 11H
207	207	of this Act.
208	208	Sec. 11D. ADDITIONS TO GROUNDWATER REDUCTION PLAN.
209	209	(a) Any person that becomes a regulated user after the period has
210	210	expired for filing a petition for inclusion under Section 11C of
211	211	this Act shall become a participant without further action by the
212	212	authority or such person. The authority and the conservation
213	213	district may enter into such agreements as may be appropriate to
214	214	provide information to the authority reasonably necessary to
215	215	identify and contact such participants. The authority by rule may
216	216	require a participant to provide the authority with any necessary
217	217	documents pertaining to the participant's service area and the
218	218	actual or projected water demands of such service area.
219	219	(b) A regulated user that was not included in the
220	220	authority's groundwater reduction plan under Section 11C of this
221	221	Act may subsequently file with the board a duly authorized and
222	222	executed petition requesting that all or part of the regulated
223	223	user's service area be included in the authority's groundwater
224	224	reduction plan. The petition must include an accurate legal
225	225	description of the boundaries of the regulated user's service area
226	226	to be included or other documents, descriptions, or maps that
227	227	sufficiently identify the area proposed to be included in lieu of
228	228	such legal description. The authority may grant the petition if, in
229	229	its sound discretion, the authority determines that:
230	230	(1) it is feasible from an engineering and economic
231	231	standpoint to do so;
232	232	(2) granting the petition will not:
233	233	(A) result in material increases in costs to the
234	234	participants in the authority's groundwater reduction plan;
235	235	(B) result in any material delay in the
236	236	implementation of the authority's groundwater reduction plan; or
237	237	(C) expose the authority or any participant to
238	238	additional construction or financing costs, fines, or penalties or
239	239	noncompliance with applicable regulatory requirements.
240	240	(c) The authority may require a regulated user, all or part
241	241	of whose service area is included in the authority's groundwater
242	242	reduction plan under Subsection (b) of this section, to pay to the
243	243	authority, for the benefit of the participants, a reasonable and
244	244	equitable charge determined by the authority to mitigate or fairly
245	245	distribute among the participants any additional costs to be
246	246	incurred by the inclusion of the additional service area in the
247	247	authority's groundwater reduction plan. If the authority has
248	248	outstanding or unissued bonds, notes, or other obligations to
249	249	finance the costs of the authority's provision of water supply
250	250	facilities and services under the authority's groundwater
251	251	reduction plan, the petition shall constitute the election and
252	252	agreement of the petitioning regulated user to assume the regulated
253	253	user's pro rata share of the principal of and interest on such
254	254	outstanding or unissued bonds, notes, or other obligations. This
255	255	subsection shall not apply to an annexation to or expansion of a
256	256	participant's boundaries, extraterritorial jurisdiction, or
257	257	service area, as applicable, notwithstanding that such annexation
258	258	or expansion may include, in whole or in part, territory within or
259	259	previously within the boundaries or service area of a regulated
260	260	user that was not included in the authority's groundwater reduction
261	261	plan under Section 11C of this Act.
262	262	(d) The authority by rule may require participants to
263	263	provide the authority with written notice of the effective date of
264	264	an annexation to or expansion of the regulated user's boundaries or
265	265	service area, together with copies of any necessary documents,
266	266	descriptions, maps, and projected or actual water demands of the
267	267	annexed or expanded boundaries or service area. Except to the
268	268	extent otherwise provided by rule, order, or written agreement of
269	269	the authority, the boundary or service area expansion of a
270	270	participant does not affect:
271	271	(1) the authority's powers and authority inside or
272	272	outside the expanded boundary or service area of the participant;
273	273	(2) the authority's groundwater reduction plan or
274	274	contracts; or
275	275	(3) the authority's authority to assess fees, user
276	276	fees, rates, charges, or special assessments inside or outside the
277	277	expanded boundaries or service area of the participant.
278	278	(e) The addition of territory to the authority's
279	279	groundwater reduction plan under this section does not affect the
280	280	validity of the authority's bonds, notes, or other obligations
281	281	authorized, issued, or incurred before or after such addition.
282	282	Sec. 11E. GROUNDWATER REDUCTION, WATER SUPPLY,
283	283	CONSERVATION, AND DROUGHT CONTINGENCY PLANS. (a) The authority
284	284	may wholly or partly develop, prepare, adopt, amend, revise,
285	285	implement, enforce, manage, or participate in a groundwater
286	286	reduction plan as necessary, in the discretion of the authority, to
287	287	facilitate full and timely compliance with applicable conservation
288	288	district rules, orders, regulations, or requirements. A
289	289	groundwater reduction plan may:
290	290	(1) specify the measures to be taken by regulated
291	291	users to reduce groundwater withdrawals;
292	292	(2) identify alternative sources of water, including
293	293	water from the authority, to be provided to regulated users;
294	294	(3) identify or estimate the rates, terms, and
295	295	conditions under which alternative sources of water will be
296	296	provided, which may be changed from time to time as considered
297	297	necessary by the authority;
298	298	(4) specify the dates and the extents to which
299	299	participants must reduce or cease usage of groundwater and accept
300	300	water from alternative sources, including water from the authority;
301	301	(5) require conversion or overconversion by regulated
302	302	users in any designated portion of the plan area to alternative
303	303	water sources in excess of the minimum requirements imposed by the
304	304	conservation district, including any applicable groundwater
305	305	reduction requirements, so long as and to the extent that the
306	306	conversion or overconversion is necessary or appropriate in
307	307	implementing the authority's groundwater reduction plan and the
308	308	costs are apportioned among participants through the authority's
309	309	fees, user fees, rates, and charges under Section 11F of this Act;
310	310	(6) provide that the groundwater reduction plan shall
311	311	be the exclusive groundwater reduction plan that is binding and
312	312	mandatory on regulated users included in the plan;
313	313	(7) limit, prohibit, or permit the export of
314	314	groundwater from, or the importation of water from any source to,
315	315	participants;
316	316	(8) require the joint use by one or more participants
317	317	of the water supply or delivery systems or facilities of a
318	318	participant to facilitate the delivery of alternative water
319	319	supplies, but only to the extent feasible without diminishing or
320	320	impairing the delivery capabilities of the systems or facilities of
321	321	a participant for its own uses and only upon proper compensation to
322	322	the participant;
323	323	(9) include other terms and measures that are
324	324	consistent with the powers and duties of the authority; and
325	325	(10) be amended from time to time at the discretion of
326	326	the authority.
327	327	(b) The initial groundwater reduction plan of the authority
328	328	may not be adopted until the later of:
329	329	(1) the effective date of any final rule, order,
330	330	regulation, or requirement adopted by the conservation district
331	331	that imposes groundwater withdrawal reductions applicable to a
332	332	regulated user; or
333	333	(2) the effective date of one or more written
334	334	agreements, each with an initial term of not less than 40 years,
335	335	that grant the authority the right to receive water supply services
336	336	from all or substantially all of the remaining permitted yield for
337	337	municipal use in and to the Lake Conroe Dam and Reservoir Project
338	338	not then permitted to the authority.
339	339	(c) Notwithstanding any other provisions of Sections 11
340	340	through 11M of this Act, the authority may rescind the adoption of
341	341	the initial groundwater reduction plan by written order of the
342	342	board adopted not later than the 240th day or before the 120th day
343	343	following the adoption of the initial groundwater reduction plan if
344	344	the authority finds, in its sole discretion, that the
345	345	implementation of the initial groundwater reduction plan is not
346	346	practicable or feasible for any reason or will not achieve the
347	347	purposes of Sections 11 through 11M of this Act. On and after the
348	348	date of the order of the board rescinding the initial groundwater
349	349	reduction plan, the authority shall have no obligation to continue
350	350	to develop or implement a groundwater reduction plan for the
351	351	benefit of any regulated user, including a regulated user that
352	352	filed a petition to be included in the authority's groundwater
353	353	reduction plan under Subsection (b), Section 11C of this Act, or
354	354	that would otherwise be included in the authority's groundwater
355	355	reduction plan under Subsection (a), Section 11D of this Act.
356	356	Written notice of the adoption of an order rescinding adoption of
357	357	the initial groundwater reduction plan shall be provided within 30
358	358	days to each regulated user that filed a petition to be included in
359	359	the authority's groundwater reduction plan under Section 11C of
360	360	this Act, but the failure of a regulated user to receive notice
361	361	shall not obligate the authority to continue to develop or
362	362	implement a groundwater reduction plan for the benefit of the
363	363	regulated user.
364	364	(d) Fees, user fees, rates, charges, and special
365	365	assessments of the authority may be imposed by the authority as
366	366	provided by this Act for a regulated user's participation in and
367	367	benefit derived from the authority's groundwater reduction plan.
368	368	(e) The authority by rule may develop, prepare, adopt,
369	369	amend, revise, implement, enforce, and manage a comprehensive water
370	370	supply plan, water conservation plan, or drought contingency plan
371	371	for and applicable to participants.
372	372	Sec. 11F. FEES, USER FEES, RATES, AND CHARGES. (a) The
373	373	authority may establish fees, user fees, rates, and charges
374	374	applicable to any participant and make reasonable classifications
375	375	of participants for purposes of such fees, rates, and charges as are
376	376	necessary by the authority to implement and enforce the plans,
377	377	powers, and authority conferred by Sections 11 through 11M of this
378	378	Act, but the fees, rates, and charges may not be imposed before the
379	379	last date for the authority to adopt an order granting a petition to
380	380	be included in the authority's groundwater reduction plan under
381	381	Subsection (b), Section 11C of this Act.
382	382	(b) Among other criteria and classifications, the authority
383	383	may charge a participant a fee or user fee according to the amount
384	384	of water pumped from the participant's groundwater well. If
385	385	ownership of a groundwater well changes, both the prior and
386	386	subsequent well owners are responsible to the authority as
387	387	participants, jointly and severally, for all fees and user fees
388	388	imposed by the authority under this Act, and any related penalties
389	389	and interest, for water pumped from the groundwater well before the
390	390	change in ownership.
391	391	(c) The board shall make reasonable efforts to notify each
392	392	participant, by publication or by written notice, of the date,
393	393	time, and location of the meeting of the board at which the board
394	394	intends to adopt a proposed rate, fee, user fee, or charge under
395	395	this section and the amount of the proposed rate, fee, user fee, or
396	396	charge. The board's failure to provide actual notice to each
397	397	participant does not invalidate a rate, fee, user fee, or charge
398	398	adopted by the board under this section.
399	399	(d) The board shall exempt from any rate, fee, user fee, or
400	400	charge under this section persons or classes of groundwater wells
401	401	that are not subject to any groundwater reduction requirement
402	402	imposed by the conservation district, but if any such persons or
403	403	classes of groundwater wells subsequently become subject to a
404	404	groundwater reduction requirement imposed by the conservation
405	405	district, the authority may thereafter impose such rate, fee, user
406	406	fee, or charge. For purposes of this subsection, a person or a
407	407	groundwater well is subject to a groundwater reduction requirement
408	408	if the conservation district has adopted or adopts a requirement or
409	409	rule that withdrawals from the groundwater well, or from the
410	410	groundwater well and other groundwater wells collectively, be
411	411	reduced, including a groundwater reduction requirement that does
412	412	not need to be satisfied until a future date.
413	413	(e) Notwithstanding Subsection (d) of this section, any
414	414	person that owns or operates a single groundwater well serving not
415	415	more than two single-family residential dwellings or units, and any
416	416	groundwater well in such class, shall be exempt from any rate, fee,
417	417	user fee, or charge under this section or any special assessment
418	418	under Section 11G of this Act. The board by rule may exempt any
419	419	other persons or classes of groundwater wells from any rate, fee,
420	420	user fee, or charge under this section.
421	421	(f) The authority may establish fees, user fees, rates, and
422	422	charges that are sufficient to:
423	423	(1) achieve water conservation;
424	424	(2) prevent waste of water;
425	425	(3) serve as a disincentive to pumping groundwater;
426	426	(4) develop, implement, or enforce a groundwater
427	427	reduction plan;
428	428	(5) accomplish the purposes of Sections 11 through 11M
429	429	of this Act, including making available alternative water supplies;
430	430	(6) purchase, lease, reserve, option, or contract for
431	431	alternative water supplies;
432	432	(7) enable the authority to meet administrative,
433	433	operations, and maintenance expenses relating to the authority's
434	434	groundwater reduction plan;
435	435	(8) pay the principal of and interest on notes, bonds,
436	436	and other obligations issued or incurred or to be issued or incurred
437	437	in connection with the exercise of the authority's rights, powers,
438	438	privileges, authority, and functions under Sections 11 through 11M
439	439	of this Act;
440	440	(9) satisfy all rate covenants relating to the
441	441	issuance of notes, bonds, and other obligations; and
442	442	(10) establish, accumulate, maintain, or replenish
443	443	one or more operating, debt service, contingency, or emergency
444	444	reserve funds as deemed necessary by the authority.
445	445	(g) The rates, fees, user fees, and charges of the authority
446	446	shall at all times be established and imposed in order to equitably
447	447	apportion the costs of the authority's groundwater reduction plan
448	448	among the participants, as nearly as practicable on a uniform
449	449	basis, such that no special advantage or disadvantage is realized
450	450	by a participant or class of participants because of proximity or
451	451	access to alternative water supplies of the authority, geographical
452	452	location, the time of inclusion within the groundwater reduction
453	453	plan, the nature or extent of the water demands of the participant,
454	454	or because the participant or class of participants is using
455	455	groundwater, or alternative water supplies, or both.
456	456	(h) The authority may also impose rates, fees, user fees, or
457	457	charges for the importation of water by a participant.
458	458	(i) To the extent that any fees, user fees, rates, charges,
459	459	or special assessments collected by the authority from participants
460	460	in the authority's groundwater reduction plan under this Act are
461	461	used to pay or reimburse the authority or one or more of its
462	462	operating divisions for the costs of developing, holding,
463	463	purchasing, leasing, reserving, optioning, or contracting for
464	464	alternative water supplies, the first and prior use of such
465	465	alternative water supplies shall be for the benefit of the
466	466	participants. Nothing in this Act shall be deemed or construed to
467	467	limit the right and power of the authority or one or more of its
468	468	other operating divisions to sell, option, or reserve water
469	469	supplies that in the judgment of the authority are surplus to the
470	470	needs of the participants, on a temporary, seasonal, periodic, or
471	471	permanent basis, to other persons, so long as any net income or
472	472	revenues from such sale, optioning, or reservation are first used
473	473	to reimburse the participants for any actual costs, expenses, or
474	474	carrying costs and interest paid by or on behalf of the participants
475	475	for such water supplies.
476	476	(j) The rates, fees, user fees, and charges imposed by the
477	477	authority under this section shall be at all times the lowest
478	478	charges which are:
479	479	(1) consistent with good management practices by the
480	480	authority;
481	481	(2) necessary and proper to pay or provide for full and
482	482	timely payment of the items described in Subsection (f) of this
483	483	section;
484	484	(3) consistent with the authority's statutory and
485	485	constitutional duties and responsibilities; and
486	486	(4) just, reasonable, and nondiscriminatory.
487	487	(k) The charges imposed by the authority under this section
488	488	shall be reviewed and adjusted from time to time by the authority in
489	489	order to ensure that the charges are not in excess of the needs of
490	490	the authority for the purposes of this section and that, other than
491	491	amounts properly allocable to the payment of the general and
492	492	administrative expenses of the authority relating to the
493	493	groundwater reduction plan, such charges will not be used for any
494	494	other corporate purpose of the authority.
495	495	Sec. 11G. ASSESSMENTS. (a) The board may undertake
496	496	improvement projects or services that confer a special benefit on
497	497	all or a defined part of the service area of one or more
498	498	participants and may impose special assessments on property in the
499	499	defined area, including property of a local government, based on
500	500	the benefit conferred by the improvement project or service, to pay
501	501	all or part of the costs of the project or service. The authority
502	502	may finance with special assessments any improvement project or
503	503	service authorized by this Act or other law, including water
504	504	delivery systems or facilities or water supplies for recreational,
505	505	environmental, aesthetic, or other nonconsumptive uses.
506	506	(b) Services or improvement projects may be financed with
507	507	special assessments only after the board holds a public hearing on
508	508	the advisability of the improvement project or service and the
509	509	proposed assessments.
510	510	(c) The board shall publish notice of the hearing in a
511	511	newspaper or newspapers with general circulation in Montgomery
512	512	County. The publication must be made not later than the 30th day
513	513	before the date of the hearing.
514	514	(d) Notice provided under this section must include:
515	515	(1) the time and place of the hearing;
516	516	(2) the general nature of the proposed improvement
517	517	project or service;
518	518	(3) the estimated cost of the improvement project or
519	519	service, including projected interest and associated financing
520	520	costs; and
521	521	(4) the proposed method of assessment.
522	522	(e) Written notice containing the information required by
523	523	Subsection (d) of this section shall be sent by certified mail,
524	524	return receipt requested, not later than the 30th day before the
525	525	date of the hearing, to each participant affected by such proposed
526	526	assessment.
527	527	(f) Following a hearing conducted by the board on a proposed
528	528	improvement project or service, the board shall make written
529	529	findings and conclusions relating to the advisability of the
530	530	improvement project or service, the nature of the improvement
531	531	project or service, the estimated costs, and the area benefited.
532	532	(g) After conclusion of a hearing conducted by a hearings
533	533	examiner on a proposed improvement project or service, the hearings
534	534	examiner shall file with the board a written report of the
535	535	examiner's findings and conclusions. The board may act upon such
536	536	findings and conclusions at any meeting of the board at which notice
537	537	of the meeting is given as provided by Chapter 551, Government Code,
538	538	without the necessity for further notice.
539	539	(h) At adjournment of a hearing on proposed assessments, or
540	540	after consideration of a hearings examiner's findings and
541	541	conclusions on the proposed assessments, the board shall hear and
542	542	rule on all objections to each proposed assessment. After the board
543	543	hears and rules on such objections, the board, by order:
544	544	(1) shall fix the amount of and impose the assessments
545	545	as special assessments on each affected property;
546	546	(2) shall specify the method of payment of the
547	547	assessments; and
548	548	(3) may provide that such assessments, including
549	549	interest, be paid in periodic installments or be subject to
550	550	prepayment charges if prepaid.
551	551	(i) Periodic installment payments of assessments must be in
552	552	amounts sufficient to meet all costs for the associated improvement
553	553	projects or services and must continue in effect for the period
554	554	required to fully and timely pay for the services to be rendered or
555	555	any bonds, notes, or other obligations issued or incurred by the
556	556	authority to finance any associated improvement projects. The
557	557	board may provide interest charges or penalties for failure to make
558	558	timely payment and may impose a fee to cover delinquencies and
559	559	expenses of collection.
560	560	(j) The board shall equitably apportion the cost of an
561	561	improvement project or services, to be assessed against the
562	562	property according to the special benefits that accrue to the
563	563	property because of the improvement project or services. Among
564	564	other classifications of benefits received, the board may assess
565	565	costs according to the number of gallons of groundwater pumped from
566	566	groundwater wells that are within or that serve such property and
567	567	are subject to a groundwater reduction requirement imposed by the
568	568	conservation district.
569	569	(k) A person that becomes a participant after the authority
570	570	has imposed assessments may waive the right to notice and an
571	571	assessment hearing and may agree to the imposition and payment of
572	572	assessments at an agreed rate. A participant may waive the right to
573	573	notice and an assessment hearing for territory within its
574	574	boundaries or service area added to the authority's groundwater
575	575	reduction plan and may agree to the imposition and payment of
576	576	assessments at an agreed rate.
577	577	(l) The board shall provide for the preparation of an
578	578	assessment roll showing the assessments against each property and
579	579	the board's basis for the assessment. The assessment roll shall be:
580	580	(1) filed with the secretary of the board or another
581	581	officer who performs similar functions; and
582	582	(2) open for public inspection.
583	583	(m) After notice and hearing in the manner required for an
584	584	original assessment, the board may make supplemental assessments to
585	585	correct omissions or mistakes or to address changed circumstances
586	586	relating to the total costs of the improvement project or service or
587	587	to covering delinquencies or costs of collection.
588	588	(n) The board may not impose or enforce a special assessment
589	589	under this section unless:
590	590	(1) one or more participants request in writing that
591	591	the authority undertake an improvement project or services that
592	592	confer a special benefit on the requesting participant or
593	593	participants; or
594	594	(2) one or more participants have failed to commence
595	595	construction of facilities or provide for equipment necessary to
596	596	accept water from alternative sources by a date that is 120 days or
597	597	more after written notice from the authority of the availability of
598	598	such water from alternative sources and of the rules of the
599	599	authority requiring such action.
600	600	Sec. 11H. INTEREST AND PENALTIES; COLLECTIONS; LIEN.
601	601	(a) The board may require the payment of interest on any late or
602	602	unpaid fees, user fees, rates, charges, and special assessments due
603	603	the authority, but the interest rate may not exceed the interest
604	604	rate permitted by Section 2251.025, Government Code. The board may
605	605	also impose penalties for the failure to make a complete or timely
606	606	payment to the authority. In addition, the board may exclude a
607	607	participant, or the service area or territory or a groundwater well
608	608	owned or controlled by a participant, from the authority's
609	609	groundwater reduction plan for failure to make a complete or timely
610	610	payment to the authority. The authority is entitled to reasonable
611	611	attorney's fees incurred by the authority in enforcing its rules or
612	612	in collecting any delinquent fees, user fees, rates, charges, and
613	613	special assessments and any related penalties and interest.
614	614	(b) In addition to being the legal responsibility of a
615	615	participant or well owner, the fees, user fees, rates, charges, and
616	616	special assessments imposed by the authority under Sections 11F and
617	617	11G of this Act, any related penalties and interest, and collection
618	618	expenses and reasonable attorney's fees incurred by the authority:
619	619	(1) are a first and prior lien against the groundwater
620	620	well to which they apply; and
621	621	(2) are superior to any other lien or claim, other than
622	622	a lien or claim for county, school district, or municipal ad valorem
623	623	taxes.
624	624	(c) A lien under this section is effective from the date of
625	625	the resolution or order of the board imposing the fee, user fee,
626	626	rate, charge, or special assessment until paid. The board may
627	627	enforce the lien in the same manner that a municipal utility
628	628	district operating under Chapters 49 and 54, Water Code, may
629	629	enforce an ad valorem tax lien against real property.
630	630	Sec. 11I. ADMINISTRATIVE PENALTY; INJUNCTION. (a) A
631	631	person who violates a rule or order of the authority imposed under
632	632	Sections 11 through 11M of this Act is subject to an administrative
633	633	penalty, payable to the authority:
634	634	(1) in an amount of not more than $5,000, as determined
635	635	by the board, for each violation or each day of a continuing
636	636	violation; or
637	637	(2) in an amount in excess of $5,000, as determined by
638	638	the board, necessary to recoup any administrative fines or
639	639	penalties imposed against the authority resulting from one or more
640	640	violations of the rules or orders of the authority by one or more
641	641	participants.
642	642	(b) The authority may bring an action to recover the penalty
643	643	in a district court in the county where the violation occurred.
644	644	(c) The authority may bring an action for injunctive relief
645	645	in a district court in the county where a violation of a rule or
646	646	order of the authority occurs or is threatened to occur. The court
647	647	may grant to the authority, without bond or other undertaking, a
648	648	prohibitory or mandatory injunction, as warranted by the facts,
649	649	including a temporary restraining order, temporary injunction, or
650	650	permanent injunction.
651	651	(d) The authority may bring an action for an administrative
652	652	penalty and injunctive relief in the same proceeding.
653	653	Sec. 11J. WAIVER OF IMMUNITY. Immunity from suit,
654	654	judgment, or liability of any local government participating in the
655	655	authority's groundwater reduction plan is hereby waived, but only
656	656	to the limited extent necessary to permit the authority to exercise
657	657	and enforce the rights, powers, privileges, and authority granted
658	658	in Sections 11 through 11M of this Act against any such local
659	659	government.
660	660	Sec. 11K. ELIGIBILITY FOR FINANCIAL ASSISTANCE. In
661	661	addition to any other financial assistance program for which the
662	662	authority may be eligible, the rights, powers, privileges, and
663	663	authority conferred by Sections 11 through 11M of this Act shall be
664	664	construed as authorizing the authority to receive financial
665	665	assistance through the Groundwater District Loan Program
666	666	administered by the Texas Water Development Board.
667	667	Sec. 11L. PUBLIC HEARINGS. The board by rule may establish
668	668	the procedures for conducting public hearings and whether any
669	669	hearing shall be conducted by the board or a hearings examiner. Any
670	670	public hearing may be adjourned from time to time to a date, time,
671	671	and location specified upon adjournment, without the necessity for
672	672	further notice.
673	673	Sec. 11M. OPERATING DIVISION. (a) To facilitate the
674	674	implementation of a groundwater reduction plan, the authority
675	675	shall:
676	676	(1) establish and maintain a separate operating
677	677	division of the authority with separate books of account that shall
678	678	be audited annually;
679	679	(2) contract for, lease, or purchase, by and for the
680	680	separate operating division, services, land, equipment, and
681	681	facilities, including administrative and management services and
682	682	facilities, and water and water byproducts, from the authority or
683	683	one or more other operating divisions of the authority or from other
684	684	persons; and
685	685	(3) allocate to the separate operating division a
686	686	proportional share of the direct and indirect costs of the
687	687	authority's general and administrative, managerial, accounting,
688	688	legal, fiscal, clerical, human resources, support services, and
689	689	technical services.
690	690	(b) The separate operating division shall be operated for
691	691	the exclusive benefit of the participants in the authority's
692	692	groundwater reduction plan and not for the use or benefit of any
693	693	water user outside the plan area, on a break-even basis, without
694	694	profit or loss to the separate operating division, such that,
695	695	except as provided in Subsection (i), Section 11F of this Act, the
696	696	assets, income, responsibilities, liabilities, and debts of the
697	697	separate operating division are not a charge against, an obligation
698	698	or responsibility of, or an asset of or income source to any other
699	699	operating division of the authority. Nothing in this subsection
700	700	shall be deemed or construed to limit or restrict the right and
701	701	power of the authority or one or more of its other operating
702	702	divisions to:
703	703	(1) prepare, maintain, audit, or report its financial
704	704	position on a consolidated basis with one or more other operating
705	705	divisions of the authority;
706	706	(2) sell untreated water to such separate operating
707	707	division from one or more other operating divisions of the
708	708	authority or from other sources at generally prevailing and
709	709	applicable rates adopted by the authority; or
710	710	(3) recover or be reimbursed the costs described in
711	711	Subsection (a) of this section.
712	712	SECTION 2. Sections 10, 10a, 10b, 10c, and 10d, Chapter 426,
713	713	Acts of the 45th Legislature, Regular Session, 1937, are repealed.
714	714	SECTION 3. Chapter 426, Acts of the 45th Legislature,
715	715	Regular Session, 1937, is amended by adding Section 10A to read as
716	716	follows:
717	717	Sec. 10A. PUBLIC SECURITIES. (a) In this section:
718	718	(1) "Public security" has the meaning assigned by
719	719	Chapter 1201, Government Code.
720	720	(2) "Credit agreement," "security agreement," and
721	721	"security interest" have the meanings assigned by Chapter 1208,
722	722	Government Code.
723	723	(b) The authority is authorized to issue, sell, and deliver
724	724	its public securities in the manner provided by this section or
725	725	other law, including Chapter 1371, Government Code, to finance or
726	726	pay for any project, improvement, program, plan, or purpose of the
727	727	authority or to refund or refinance any public security.
728	728	(c) Public securities of the authority may be sold by the
729	729	board or by delegation of authority to an officer or employee of the
730	730	authority, at public or private sale, in such form, at such price,
731	731	on such terms and conditions, and at such interest rate or rates,
732	732	whether fixed, variable, floating, adjustable, or otherwise, as the
733	733	board may determine appropriate, provided the net effective
734	734	interest rate does not exceed the maximum rate allowed by law.
735	735	(d) Without the necessity for an election, public
736	736	securities of the authority may be made payable from all or any
737	737	designated portion or combination of any revenues, receipts, fees,
738	738	user fees, rates, charges, special assessments, contract revenues,
739	739	income, proceeds of refunding public securities, or funds from any
740	740	other source of the authority other than ad valorem taxes. Public
741	741	securities of the authority payable in whole or in part from ad
742	742	valorem taxes may be issued only after approval by a majority of the
743	743	qualified electors of all or a defined portion of the service area
744	744	of the authority voting at an election held for that purpose. The
745	745	board may call and conduct elections within all or a defined portion
746	746	of the service area of the authority for that purpose.
747	747	(e) Public securities of the authority may be secured by
748	748	means of a security agreement or credit agreement, or both, and with
749	749	such security interest or interests, other than a mortgage interest
750	750	on real property, and with such parity or priority of pledge and
751	751	lien as the board may determine to be appropriate.
752	752	SECTION 4. The repeal of laws under Section 2 of this Act
753	753	shall not affect the validity, enforceability, security, priority
754	754	of lien, or other terms and conditions of any bonds, notes, or
755	755	obligations of the San Jacinto River Authority issued or incurred
756	756	prior to the effective date of this Act.
757	757	SECTION 5. The legislature finds that proper and legal
758	758	notice of the intention to introduce this Act, setting forth the
759	759	general substance of this Act, has been published as provided by
760	760	law, and such notice and a copy of this Act have been furnished to
761	761	all persons, agencies, officials, or entities to which they are
762	762	required to be furnished by the constitution and laws of this state,
763	763	including the governor, who has submitted the notice and Act to the
764	764	Texas Commission on Environmental Quality, and that the Texas
765	765	Commission on Environmental Quality has filed its recommendations
766	766	relating to this Act with the governor, lieutenant governor, and
767	767	speaker of the house of representatives within the required time,
768	768	and that all requirements of the constitution and laws of this state
769	769	and the rules and procedures of the legislature with respect to the
770	770	notice, introduction, and passage of this Act have been fulfilled
771	771	and accomplished.
772	772	SECTION 6. The legislature finds, determines, and declares
773	773	its intent that:
774	774	(1) the conservation and preservation of groundwater
775	775	resources in Montgomery County is essential to the economic
776	776	well-being and public health of the state as a whole;
777	777	(2) effective measures to reduce groundwater
778	778	withdrawals by large-volume groundwater users in Montgomery County
779	779	must be implemented immediately;
780	780	(3) the withdrawal of groundwater from shallow
781	781	aquifers for domestic or household use by individuals has no
782	782	significant negative impact on groundwater resources in Montgomery
783	783	County; and
784	784	(4) under no circumstances shall this Act be
785	785	interpreted, deemed, or construed to apply to or to authorize the
786	786	reduction of groundwater withdrawal by any person that owns or
787	787	operates a single groundwater well serving not more than two
788	788	single-family residential dwellings or units.
789	789	SECTION 7. The provisions of this Act are severable. If any
790	790	word, phrase, clause, sentence, section, provision, or part of this
791	791	Act is held invalid or unconstitutional, it shall not affect the
792	792	validity of the remaining portions, and it is declared to be the
793	793	legislative intent that this Act would have been passed as to the
794	794	remaining portions regardless of the invalidity of any part.
795	795	SECTION 8. This Act takes effect immediately if it receives
796	796	a vote of two-thirds of all the members elected to each house, as
797	797	provided by Section 39, Article III, Texas Constitution. If this
798	798	Act does not receive the vote necessary for immediate effect, this
799	799	Act takes effect September 1, 2009.
800	800	* * * * *