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.