By: Lucio III (Senate Sponsor - Perry) H.B. No. 950
(In the Senate - Received from the House May 4, 2015;
May 5, 2015, read first time and referred to Committee on
Agriculture, Water, and Rural Affairs; May 26, 2015, reported
favorably by the following vote: Yeas 6, Nays 0; May 26, 2015, sent
to printer.)
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.
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