By: Estes S.B. No. 1588
A BILL TO BE ENTITLED
AN ACT
relating to the management of the water resources of the state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 1502, Government Code, is
amended to read as follows:
CHAPTER 1502. PUBLIC SECURITIES FOR MUNICIPAL UTILITIES, PARKS,
[OR] POOLS, OR WATER CONSERVATION INFRASTRUCTURE
SECTION 2. Section 1502.001, Government Code, is amended by
adding Subdivision (4) to read as follows:
(4) "Water conservation infrastructure" means
property, interests in property, buildings, structures,
activities, services, operations, or other facilities owned by a
municipality or any person contracting with a municipality that is
found by the governing body of the municipality to conserve,
preserve, or treat water, wastewater, stormwater, or other water
resources of the municipality.
SECTION 3. The heading to Section 1502.002, Government
Code, is amended to read as follows:
Sec. 1502.002. GENERAL AUTHORITY FOR UTILITY SYSTEMS,
PARKS, [AND] POOLS, AND WATER CONSERVATION INFRASTRUCTURE.
SECTION 4. Section 1502.002(a), Government Code, is amended
to read as follows:
(a) A municipality may acquire, purchase, construct,
improve, enlarge, equip, operate, or maintain any property,
including channels or bodies of water known as resacas, interests
in property, buildings, structures, activities, services,
operations, or other facilities, with respect to:
(1) a utility system;
(2) a park; [or]
(3) a swimming pool; or
(4) water conservation infrastructure.
SECTION 5. Subchapter A, Chapter 1502, Government Code, is
amended by adding Sections 1502.005 and 1502.006 to read as
follows:
Sec. 1502.005. DECLARATION OF PUBLIC PURPOSE. Under
Section 52-a, Article III, Texas Constitution, a municipality may
undertake to provide or provide funding for water conservation
infrastructure in accordance with this chapter that the
municipality determines to be:
(1) in furtherance of the development and
diversification of the economy of the municipality;
(2) in furtherance of the conservation, preservation,
or treatment of water resources of the municipality; and
(3) beneficial to the operation of its utility system.
Sec. 1502.006. ADDITIONAL POWERS RELATED TO PROVISION OF
WATER CONSERVATION INFRASTRUCTURE. A municipality may exercise any
power granted to the municipality by Chapter 380, Local Government
Code, in providing or providing funding for water conservation
infrastructure under this chapter.
SECTION 6. The heading to Subchapter B, Chapter 1502,
Government Code, is amended to read as follows:
SUBCHAPTER B. PUBLIC SECURITIES FOR UTILITY SYSTEMS, PARKS, [OR]
POOLS, OR WATER CONSERVATION INFRASTRUCTURE
SECTION 7. Section 1502.051(a), Government Code, is amended
to read as follows:
(a) The governing body of a municipality may provide funds
to acquire, purchase, construct, improve, renovate, enlarge, or
equip property, buildings, structures, facilities, or related
infrastructure for:
(1) a utility system;
(2) a park; [or]
(3) a swimming pool; or
(4) water conservation infrastructure.
SECTION 8. Section 1502.052(a), Government Code, is amended
to read as follows:
(a) The governing body of a municipality may pledge to the
payment of any public securities issued or any obligations incurred
under Section 1502.051(c) all or any part of the revenue of:
(1) a utility system;
(2) a park; [or]
(3) a swimming pool; or
(4) water conservation infrastructure.
SECTION 9. Section 1502.053, Government Code, is amended to
read as follows:
Sec. 1502.053. GRANT OF FRANCHISE. As additional security
for public securities issued or obligations incurred under this
chapter, the municipality by the terms of the encumbrance may grant
a purchaser under sale or foreclosure a franchise to operate the
encumbered utility system, park, [or] pool, or water conservation
infrastructure for a term not to exceed 20 years from the date of
purchase, subject to all laws regulating the operation of the
utility system, park, [or] pool, or water conservation
infrastructure in force at the time of the sale or foreclosure.
SECTION 10. Section 1502.054(a), Government Code, is
amended to read as follows:
(a) A public security issued or an obligation incurred under
this chapter:
(1) is not a debt of the municipality;
(2) may be a charge only on the encumbered utility
system, park, [or] pool, or water conservation infrastructure; and
(3) may not be included in determining the
municipality's power to issue public securities for any purpose
authorized by law.
SECTION 11. Section 1502.055(a), Government Code, is
amended to read as follows:
(a) Unless authorized by a majority vote of the qualified
voters of the municipality, a municipality may not sell a utility
system, park, [or] pool, or municipally owned water conservation
infrastructure.
SECTION 12. Section 1502.056(a), Government Code, is
amended to read as follows:
(a) If the revenue of a utility system, park, [or] swimming
pool, or water conservation infrastructure secures the payment of
public securities issued or obligations incurred under this
chapter, each expense of operation and maintenance, including all
salaries, labor, materials, interest, repairs and extensions
necessary to provide efficient service, and each proper item of
expense, is a first lien against that revenue. For a municipality
with a population of more than one million but less than two
million, the first lien against the revenue of a municipally owned
utility system that secures the payment of public securities issued
or obligations incurred under this chapter also applies to funding,
as a necessary operations expense, for a bill payment assistance
program for utility system customers who:
(1) have been threatened with disconnection from
service for nonpayment of bills and who have been determined by the
municipality to be low-income customers; or
(2) are military veterans who have significantly
decreased abilities to regulate their bodies' core temperatures
because of severe burns received in combat.
SECTION 13. Sections 1502.058(a) and (c), Government Code,
are amended to read as follows:
(a) Except as provided by Subsection (b) or (c), by Section
1502.059, or by Section 271.052, Local Government Code, a
municipality may not use the revenue of a utility system, park, [or]
swimming pool, or water conservation infrastructure to pay any
other debt, expense, or obligation of the municipality until the
debt secured by the revenue is finally paid.
(c) This section does not apply to a payment made from
surplus revenue of a utility system, park, [or] swimming pool, or
water conservation infrastructure, as provided by the proceedings
authorizing the issuance of public securities under this chapter.
SECTION 14. Section 1502.060(a), Government Code, is
amended to read as follows:
(a) To the extent provided by the proceedings authorizing
the issuance of the public securities issued under this chapter, a
municipality may:
(1) use proceeds from the sale of public securities
issued to provide funds for a utility system under this chapter for
any purpose authorized by Section 1502.051(a)(1) or (b);
(2) use proceeds from the sale of public securities
issued to provide funds for a park under this chapter for any
purpose authorized by Section 1502.051(a)(2); [or]
(3) use proceeds from the sale of public securities to
provide funds for a swimming pool under this chapter for any purpose
authorized by Section 1502.051(a)(3); or
(4) use proceeds from the sale of public securities
issued to provide funds for water conservation infrastructure under
this chapter for any purpose authorized by Section 1502.006 or
1502.051(a)(4).
SECTION 15. Section 1502.066, Government Code, is amended
to read as follows:
Sec. 1502.066. RECORDS. The mayor of the municipality
shall establish and maintain a complete system of records for a
utility system, park, [or] swimming pool, or water conservation
infrastructure the revenue of which is encumbered under this
chapter that:
(1) shows any free service provided and the value of
the free service; and
(2) shows separately the amounts spent and the amounts
set aside for operation, salaries, labor, materials, repairs,
maintenance, depreciation, replacements, extensions, interest, and
the creation of a sinking fund to pay the public securities and
debt.
SECTION 16. Section 1502.068, Government Code, is amended
to read as follows:
Sec. 1502.068. ANNUAL REPORT. (a) Annually, on the date
determined by the governing body of the municipality, the
superintendent or manager of a utility system, park, [or] pool, or
water conservation infrastructure or another person designated by
the governing body shall file with the mayor and governing body of
the municipality a detailed report of the operation of the system,
park, [or] pool, or water conservation infrastructure for the
preceding 12-month period specified by the governing body.
(b) The report must show the total amount of money collected
and the balance due, and the total disbursements made and the
amounts remaining unpaid, resulting from the operation of the
utility system, park, [or] pool, or water conservation
infrastructure during that year.
(c) If the municipality provides loans or grants of public
money to persons to acquire, purchase, construct, improve,
renovate, enlarge, or equip water conservation infrastructure, the
report must contain:
(1) the types of water conservation infrastructure
projects funded;
(2) the controls imposed by the municipality on the
persons receiving loans or grants to ensure that the public
purposes described by Section 1502.005 are being carried out; and
(3) an analysis of the results of how the funded water
conservation infrastructure projects achieved the intended results
in furtherance of the public purposes described by Section
1502.005.
SECTION 17. Section 1502.069(a), Government Code, is
amended to read as follows:
(a) A mayor commits an offense if the mayor fails to:
(1) establish the system of records required by
Section 1502.066 before the 91st day after the date the utility
system, park, [or] pool, or water conservation infrastructure is
completed; or
(2) maintain the system of records required by Section
1502.066.
SECTION 18. Section 1502.074, Government Code, is amended
to read as follows:
Sec. 1502.074. CIVIL ENFORCEMENT. A person who resides in a
municipality and is a taxpayer or holder of a public security issued
or an obligation incurred under this chapter and secured by the
revenue of the municipality's utility system, park, [or] swimming
pool, or water conservation infrastructure as provided by this
chapter is entitled to enforce this chapter by appropriate civil
action in a district court in the county in which the municipality
is located.
SECTION 19. Section 341.039, Health and Safety Code, is
amended by adding Subsection (a-1) and amending Subsection (c) to
read as follows:
(a-1) The standards adopted by the commission under
Subsection (a)(2) must permit the use of graywater for toilet and
urinal flushing.
(c) The commission may not require a permit for the domestic
use of less than 400 gallons of graywater each day if the graywater:
(1) originates from a private residence;
(2) is used by the occupants of that residence for
gardening, composting, [or] landscaping, or toilet or urinal
flushing at the residence;
(3) is collected using a system that overflows into a
sewage collection or on-site wastewater treatment and disposal
system;
(4) is stored in tanks that:
(A) are clearly labeled as nonpotable water;
(B) restrict access, especially to children; and
(C) eliminate habitat for mosquitoes and other
vectors;
(5) uses piping clearly identified as a nonpotable
water conduit, including identification through the use of purple
pipe, purple tape, or similar markings;
(6) is generated without the formation of ponds or
pools of graywater;
(7) does not create runoff across the property lines
or onto any paved surface; and
(8) is distributed by a surface or subsurface system
that does not spray into the air.
SECTION 20. Section 11.085(v), Water Code, is amended to
read as follows:
(v) The provisions of this section, except Subsection (a),
do not apply to:
(1) a proposed transfer which in combination with any
existing transfers totals less than 3,000 acre-feet of water per
annum from the same permit, certified filing, or certificate of
adjudication;
(2) a request for an emergency transfer of water;
(3) a proposed transfer from a basin to its adjoining
coastal basin;
(4) a proposed transfer from the part of the
geographic area of a county or municipality, or the part of the
retail service area of a retail public utility as defined by Section
13.002, that is within the basin of origin for use in that part of
the geographic area of the county or municipality, or that
contiguous part of the retail service area of the utility, not
within the basin of origin; [or]
(5) a proposed transfer of water that is:
(A) imported from a source located wholly outside
the boundaries of this state, except water that is imported from a
source located in the United Mexican States;
(B) for use in this state; and
(C) transported by using the bed and banks of any
flowing natural stream located in this state; or
(6) a proposed transfer from a basin to another basin
identified as a water management strategy or an alternate water
management strategy in the state water plan.
SECTION 21. Subchapter E, Chapter 13, Water Code, is
amended by adding Section 13.1461 to read as follows:
Sec. 13.1461. CORRECTIONAL FACILITY COMPLIANCE WITH
CONSERVATION MEASURES. A retail public utility may require the
operator of a correctional facility, as defined by Section
1.07(14), Penal Code, that receives retail water or sewer utility
service from the retail public utility to comply with water
conservation measures adopted or implemented by the retail public
utility.
SECTION 22. Subchapter J, Chapter 15, Water Code, is
amended by adding Section 15.6042 to read as follows:
Sec. 15.6042. CROSS-COLLATERALIZATION OF FUNDS. (a) In
this section, "state revolving fund bonds" means revenue bonds
issued by the board to provide funds for the revolving fund, the
safe drinking water revolving fund, or an additional state
revolving fund.
(b) Notwithstanding any other law to the contrary, the board
by resolution may approve the use of assets of the revolving fund,
the safe drinking water revolving fund, or an additional state
revolving fund as a source of revenue or security, or both revenue
and security, for the payment of the principal of and interest on
state revolving fund bonds.
SECTION 23. Section 26.0311, Water Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) The standards adopted by the commission under
Subsection (b)(2) must permit the use of graywater for toilet and
urinal flushing.
SECTION 24. Subchapter B, Chapter 27, Water Code, is
amended by adding Section 27.026 to read as follows:
Sec. 27.026. DUAL AUTHORIZATION OF INJECTION WELLS TO
INJECT NONHAZARDOUS BRINE FROM DESALINATION OPERATIONS OR
NONHAZARDOUS DRINKING WATER TREATMENT RESIDUALS. (a) The
commission may authorize by individual permit, by general permit,
or by rule a Class V injection well for the injection of
nonhazardous brine from a desalination operation or nonhazardous
drinking water treatment residuals into a Class II injection well
that is also permitted by the railroad commission under Subchapter
C.
(b) The commission and railroad commission by rule shall
enter or amend a memorandum of understanding to implement and
administer this section.
SECTION 25. Section 36.001, Water Code, is amended by
amending Subdivisions (8) and (16) and adding Subdivision (31) to
read as follows:
(8) "Waste" means any one or more of the following:
(A) withdrawal of groundwater from a groundwater
reservoir at a rate and in an amount that causes or threatens to
cause intrusion into the reservoir of water unsuitable for
agricultural, gardening, domestic, or stock raising purposes;
(B) the flowing or producing of wells from a
groundwater reservoir if the water produced is not used for a
beneficial purpose;
(C) escape of groundwater from a groundwater
reservoir to any other reservoir or geologic strata that does not
contain groundwater;
(D) pollution or harmful alteration of
groundwater in a groundwater reservoir by saltwater or by other
deleterious matter admitted from another stratum or from the
surface of the ground;
(E) willfully [wilfully] or negligently causing,
suffering, or allowing groundwater to escape into any river, creek,
natural watercourse, depression, lake, reservoir, drain, sewer,
street, highway, road, or road ditch, or onto any land other than
that of the owner of the well unless such discharge is authorized by
permit, rule, or order issued by the commission under Chapter 26;
(F) groundwater pumped for irrigation that
escapes as irrigation tailwater onto land other than that of the
owner of the well unless permission has been granted by the occupant
of the land receiving the discharge; or
(G) for water produced from an artesian well,
"waste" also has the meaning assigned by Section 11.205.
(16) "Loan fund" means the groundwater conservation
district loan assistance fund created under Section 36.371.
(31) "Operating permit" as used in this chapter means
any type of permit issued by a district that relates to the
operation of or production from a water well, which may include
authorization to drill or complete a water well if the district
does not require a separate permit for drilling or completing a
water well.
SECTION 26. Section 36.017(i), Water Code, is amended to
read as follows:
(i) If a majority of the votes cast at the election are
against the levy of a maintenance tax, the district shall set
[production] fees authorized by this chapter to pay for the
district's regulation of groundwater in the district[, including
fees based on the amount of water to be withdrawn from a well].
SECTION 27. Section 36.0171(h), Water Code, is amended to
read as follows:
(h) If the majority of the votes cast at the election are
against the levy of a maintenance tax, the district shall set
[production] fees authorized by this chapter in accordance with
Section 35.013(g-1) to pay for the district's regulation of
groundwater in the district[, including fees based on the amount of
water to be withdrawn from a well].
SECTION 28. Section 36.058, Water Code, is amended to read
as follows:
Sec. 36.058. CONFLICTS OF INTEREST. A director of a
district is subject to the provisions of Chapters [Chapter] 171 and
176, Local Government Code, relating to the regulation of conflicts
of officers of local governments.
SECTION 29. Section 36.061(a), Water Code, is amended to
read as follows:
(a) Subject to the law governing the district, the board
shall adopt the following in writing:
(1) a code of ethics for district directors, officers,
employees, and persons who are engaged in handling investments for
the district;
(2) a policy relating to travel expenditures;
(3) a policy relating to district investments that
ensures that:
(A) purchases and sales of investments are
initiated by authorized individuals, conform to investment
objectives and regulations, and are properly documented and
approved; and
(B) periodic review is made of district
investments to evaluate investment performance and security;
(4) policies and procedures for selection,
monitoring, or review and evaluation of professional services; and
(5) policies that ensure a better use of management
information, including:
(A) budgets for use in planning and controlling
cost; and
(B) an audit or finance committee of the board.[;
and
[(C) uniform reporting requirements that use
"Audits of State and Local Governmental Units" as a guide on audit
working papers and that uses "Governmental Accounting and Financial
Reporting Standards."]
SECTION 30. Section 36.116(c), Water Code, is amended to
read as follows:
(c) In regulating the production of groundwater based on
tract size or acreage, a district may consider the service needs or
service area of a retail public [water] utility. For the purposes
of this subsection, "retail public [water] utility" shall have the
meaning provided by [at] Section 13.002.
SECTION 31. Sections 36.117(a) and (d), Water Code, are
amended to read as follows:
(a) A district by rule may provide an exemption from the
district's requirement to obtain [a drilling permit, an operating
permit, or] any [other] permit required by this chapter or the
district's rules.
(d) A district may cancel a previously granted exemption[,]
and may require an operating permit for or restrict production from
a well and assess any appropriate fees[,] if:
(1) [the well is located in the Hill Country Priority
Groundwater Management Area and] the groundwater withdrawals that
were exempted under Subsection (b)(1) are no longer used solely for
domestic use or to provide water for livestock or poultry;
(2) the groundwater withdrawals that were exempted
under Subsection (b)(2) are no longer used solely to supply water
for a rig that is actively engaged in drilling or exploration
operations for an oil or gas well permitted by the Railroad
Commission of Texas; or
(3) the groundwater withdrawals that were exempted
under Subsection (b)(3) are no longer necessary for mining
activities or are greater than the amount necessary for mining
activities specified in the permit issued by the Railroad
Commission of Texas under Chapter 134, Natural Resources Code.
SECTION 32. Section 36.122(e), Water Code, is amended to
read as follows:
(e) The district may impose an export [a reasonable] fee or
surcharge [for an export fee] using one of the following methods:
(1) a fee negotiated between the district and the
exporter [transporter];
(2) a rate not to exceed the equivalent of the
district's tax rate per hundred dollars of valuation for each
thousand gallons of water exported from [transferred out of] the
district or 2.5 cents per thousand gallons of water, if the district
assesses a tax rate of less than 2.5 cents per hundred dollars of
valuation; or
(3) for a fee-based district, a 50 percent [export]
surcharge, in addition to the district's production fee, for water
exported from [transferred out of] the district.
SECTION 33. Sections 36.153(a), (b), and (d), Water Code,
are amended to read as follows:
(a) Annually and subject to Subsection (c), the board shall
have an audit made of the financial condition of the district. The
district audit shall be performed according to the generally
accepted government auditing standards adopted by the American
Institute of Certified Public Accountants.
(b) Financial statements shall be prepared in accordance
with generally accepted accounting principles as adopted by the
American Institute of Certified Public Accountants. The annual
audit and other district records must be open to inspection during
regular business hours at the principal office of the district.
(d) A financially dormant district may elect not to conduct
an audit and instead submit to the executive director a financial
dormancy affidavit [instead of complying with the audit
requirements of Section 49.191].
SECTION 34. Section 36.157(a), Water Code, is amended to
read as follows:
(a) A district, or the county or counties where the district
is to be located, may pay all costs and expenses necessarily
incurred in the creation and organization of a district, including
legal fees and other incidental expenses, and may reimburse any
person, including a county, for money advanced for these purposes.
SECTION 35. Section 36.159, Water Code, is amended to read
as follows:
Sec. 36.159. GROUNDWATER CONSERVATION DISTRICT MANAGEMENT
PLAN FUNDS. The Texas Water Development Board may allocate funds
from the water assistance fund to a district to:
(1) conduct initial data collections under this
chapter;
(2) [, to] develop and implement a long-term
management plan under Section 36.1071;[,] and
(3) [to] participate in regional water plans.
SECTION 36. Section 36.204, Water Code, is amended by
adding Subsection (c) to read as follows:
(c) Sections 26.04(c)-(j), 26.05(b), (c), (d), (e), and
(g), and 26.07, Tax Code, do not apply to a tax levied and collected
under this chapter or an ad valorem tax levied and collected for the
payment of the interest on and principal of bonds issued by a
district.
SECTION 37. Sections 36.205(f) and (g), Water Code, are
amended to read as follows:
(f) A district, including a district described under
Subsection (d), may assess a production fee under Subsection (c)
and an export fee under Subsection (g), if applicable, for any water
produced under an exemption under Section 36.117 if that water is
subsequently sold to another person.
(g) A district may assess an export [a transportation] fee
under Section 36.122.
SECTION 38. Section 36.206(a), Water Code, is amended to
read as follows:
(a) A temporary board may set [user] fees authorized by this
chapter to pay for the creation and initial operation of a district,
until such time as the district creation has been confirmed and a
permanent board has been elected by a majority vote of the qualified
voters voting in the district in an election called for those
purposes.
SECTION 39. Section 36.207, Water Code, is amended to read
as follows:
Sec. 36.207. USE OF [PERMIT] FEES [AUTHORIZED BY SPECIAL
LAW]. A district may use funds obtained from administrative,
production, or export [permit] fees collected under a [pursuant to
the] special law governing the district or this chapter for any
purpose consistent with the district's approved management plan,
including, without limitation, making grants, loans, or
contractual payments to achieve, facilitate, or expedite
reductions in groundwater pumping or the development or
distribution of alternative water supplies.
SECTION 40. Section 36.251, Water Code, is amended to read
as follows:
Sec. 36.251. SUIT AGAINST DISTRICT. (a) A person, firm,
corporation, or association of persons affected by and dissatisfied
with any [provision or with any] rule or order made by a district,
including an appeal of a decision on a permit application, is
entitled to file a suit against the district or its directors to
challenge the validity of the law, rule, or order.
(b) Only the district, the applicant, and parties to a
contested case hearing may participate in an appeal of a decision on
the application that was the subject of that contested case
hearing. An appeal of a decision on a permit application must
include the applicant as a necessary party.
(c) The suit shall be filed in a court of competent
jurisdiction in any county in which the district or any part of the
district is located. The suit may only be filed after all
administrative appeals to the district are final.
SECTION 41. Section 36.3011, Water Code, is amended to read
as follows:
Sec. 36.3011. COMMISSION INQUIRY AND ACTION REGARDING
DISTRICT DUTIES. (a) In this section, "affected person" means, with
respect to a management area:
(1) an owner of land in the management area;
(2) a groundwater conservation district or subsidence
district in or adjacent to the management area;
(3) a regional water planning group with a water
management strategy in the management area;
(4) a person who holds or is applying for a permit from
a district in the management area;
(5) a person with a legally defined interest in
groundwater in the management area; or
(6) any other person defined as affected by commission
rule.
(b) An affected person may file a petition with the
commission requesting an inquiry for any of the following reasons:
(1) a district fails to submit its management plan to
the executive administrator;
(2) a district fails to participate in the joint
planning process under Section 36.108;
(3) a district fails to adopt rules;
(4) a district fails to adopt the applicable desired
future conditions adopted by the management area at a joint
meeting;
(5) a district fails to update its management plan
before the second anniversary of the adoption of desired future
conditions by the management area;
(6) a district fails to update its rules to implement
the applicable desired future conditions before the first
anniversary of the date it updated its management plan with the
adopted desired future conditions;
(7) the rules adopted by a district are not designed to
achieve the adopted desired future conditions;
(8) the groundwater in the management area is not
adequately protected by the rules adopted by a district; or
(9) the groundwater in the management area is not
adequately protected due to the failure of a district to enforce
substantial compliance with its rules.
(c) Not later than the 90th day after the date the petition
is filed, the commission shall review the petition and either:
(1) dismiss the petition if the commission finds that
the evidence is not adequate to show that any of the conditions
alleged in the petition exist; or
(2) select a review panel as provided in Subsection
(d).
(d) If the petition is not dismissed under Subsection (c),
the commission shall appoint a review panel consisting of a
chairperson and four other members. A director or general manager
of a district located outside the management area that is the
subject of the petition may be appointed to the review panel. The
commission may not appoint more than two members of the review panel
from any one district. The commission also shall appoint a
disinterested person to serve as a nonvoting recording secretary
for the review panel. The recording secretary may be an employee of
the commission. The recording secretary shall record and document
the proceedings of the panel.
(e) Not later than the 120th day after appointment, the
review panel shall review the petition and any evidence relevant to
the petition and, in a public meeting, consider and adopt a report
to be submitted to the commission. The commission may direct the
review panel to conduct public hearings at a location in the
management area to take evidence on the petition. The review panel
may attempt to negotiate a settlement or resolve the dispute by any
lawful means.
(f) In its report, the review panel shall include:
(1) a summary of all evidence taken in any hearing on
the petition;
(2) a list of findings and recommended actions
appropriate for the commission to take and the reasons it finds
those actions appropriate; and
(3) any other information the panel considers
appropriate.
(g) The review panel shall submit its report to the
commission.
(h) Not later than the 45th day after receiving the review
panel's report under this section [Section 36.1082], the executive
director or the commission shall take action to implement any or all
of the panel's recommendations. The commission may take any action
against a district it considers necessary in accordance with
Section 36.303 if the commission finds that:
(1) the district has failed to submit its management
plan to the executive administrator;
(2) the district has failed to participate in the
joint planning process under Section 36.108;
(3) the district has failed to adopt rules;
(4) the district has failed to adopt the applicable
desired future conditions adopted by the management area at a joint
meeting;
(5) the district has failed to update its management
plan before the second anniversary of the adoption of desired
future conditions by the management area;
(6) the district has failed to update its rules to
implement the applicable desired future conditions before the first
anniversary of the date it updated its management plan with the
adopted desired future conditions;
(7) the rules adopted by the district are not designed
to achieve the desired future conditions adopted by the management
area during the joint planning process;
(8) the groundwater in the management area is not
adequately protected by the rules adopted by the district; or
(9) the groundwater in the management area is not
adequately protected because of the district's failure to enforce
substantial compliance with its rules.
SECTION 42. Section 36.303(a), Water Code, is amended to
read as follows:
(a) If Section [36.108,] 36.301, 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 43. Section 36.321, Water Code, is amended to read
as follows:
Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. Subject
to Section 36.331, the [The] owner of land not already in
[contiguous to] a district may file with the board a notarized
petition requesting that the owner's land be included in the
district. The petition must describe the land by legal description
or by metes and bounds or by lot and block number if there is a
recorded plat of the area to be included in the district.
SECTION 44. Section 36.325, Water Code, is amended to read
as follows:
Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION.
(a) Landowners of a defined area of territory not already in a
district may file with any district a petition requesting inclusion
in that district and, subject to Section 36.331, the defined area of
territory is not required to be contiguous with that district.
(b) The petition must be signed by:
(1) a majority of the landowners in the territory;
(2) at least 50 landowners if the number of landowners
is more than 50; or
(3) the commissioners court of the county in which the
area is located if the area is identified as a priority groundwater
management area or includes the entire county.
(c) The petition must describe the land by legal description
or by metes and bounds or by lot and block number if there is a
recorded plat of the area to be included in the district.
SECTION 45. Section 36.328(a), Water Code, is amended to
read as follows:
(a) Annexation of the territory by petition filed under
Section 36.325 is not final until ratified by a majority vote of the
voters in the territory to be added. An election in the existing
district accepting the addition of land is not required.
SECTION 46. The heading to Subchapter L, Chapter 36, Water
Code, is amended to read as follows:
SUBCHAPTER L. GROUNDWATER CONSERVATION DISTRICT LOAN ASSISTANCE
FUND
SECTION 47. Section 36.371, Water Code, is amended to read
as follows:
Sec. 36.371. GROUNDWATER CONSERVATION DISTRICT LOAN
ASSISTANCE FUND. (a) The groundwater conservation district loan
assistance fund is created, to be funded by direct appropriation
and by the Texas Water Development Board from the water assistance
fund.
(b) Repayments of loans shall be deposited in the water
assistance fund.
SECTION 48. Section 36.403, Water Code, is amended to read
as follows:
Sec. 36.403. SCHEDULING OF PUBLIC HEARING. (a) The
general manager or board may schedule a public hearing on permit or
permit amendment applications received by the district as
necessary, as provided by Section 36.114.
(b) The general manager or board may schedule more than one
application for consideration at a public hearing.
(c) A public hearing must be held at the district office or
regular meeting location of the board unless the board provides for
hearings to be held at a different location.
(d) A public hearing may be held in conjunction with a
regularly scheduled board meeting.
SECTION 49. Sections 36.404(a) and (d), Water Code, are
amended to read as follows:
(a) If the general manager or board schedules a public
hearing on an application for a permit or permit amendment, the
general manager or board shall give notice of the hearing as
provided by this section.
(d) A person may request notice from the district of a
public hearing on a permit or a permit amendment application. The
request must be in writing and is effective for the remainder of the
calendar year in which the request is received by the district. To
receive notice of a public hearing in a later year, a person must
submit a new request. An affidavit of an officer or employee of the
district establishing attempted service by first class mail,
facsimile, or e-mail to the person in accordance with the
information provided by the person is proof that notice was
provided by the district.
SECTION 50. Section 36.405, Water Code, is amended to read
as follows:
Sec. 36.405. HEARING REGISTRATION. The district may
require each person who participates in a public hearing to submit a
hearing registration form stating:
(1) the person's name;
(2) the person's address; and
(3) whom the person represents, if the person is not
there in the person's individual capacity.
SECTION 51. Subchapter M, Chapter 36, Water Code, is
amended by adding Section 36.4051 to read as follows:
Sec. 36.4051. BOARD ACTION; CONTESTED CASE HEARING
REQUESTS; PRELIMINARY HEARING. (a) The board may take action on
any uncontested application at a properly noticed public meeting
held at any time after the public hearing at which the application
is scheduled to be heard. The board may issue a written order to:
(1) grant the application;
(2) grant the application with special conditions; or
(3) deny the application.
(b) The board shall schedule a preliminary hearing to hear a
request for a contested case hearing filed in accordance with rules
adopted under Section 36.415. The preliminary hearing may be
conducted by:
(1) a quorum of the board;
(2) an individual to whom the board has delegated in
writing the responsibility to preside as a hearing examiner over
the hearing or matters related to the hearing; or
(3) the State Office of Administrative Hearings under
Section 36.416.
(c) Following a preliminary hearing, the board shall
determine whether any person requesting the contested case hearing
has standing to make that request and whether a justiciable issue
related to the application has been raised. If the board determines
that no person who requested a contested case hearing had standing
or that no justiciable issues were raised, the board may take any
action authorized under Subsection (a).
(d) An applicant may, not later than the 20th day after the
date the board issues an order granting the application, demand a
contested case hearing if the order:
(1) includes special conditions that were not part of
the application as finally submitted; or
(2) grants a maximum amount of groundwater production
that is less than the amount requested in the application.
SECTION 52. Section 36.406(d), Water Code, is amended to
read as follows:
(d) The presiding officer may:
(1) convene the hearing at the time and place
specified in the notice;
(2) set any necessary additional hearing dates;
(3) designate the parties regarding a contested
application;
(4) establish the order for presentation of evidence;
(5) administer oaths to all persons presenting
testimony;
(6) examine persons presenting testimony;
(7) ensure that information and testimony are
introduced as conveniently and expeditiously as possible without
prejudicing the rights of any party;
(8) prescribe reasonable time limits for testimony and
the presentation of evidence; [and]
(9) exercise the procedural rules adopted under
Section 36.415; and
(10) determine how to apportion among the parties the
costs related to:
(A) a contract for the services of a presiding
officer; and
(B) the preparation of the official hearing
record.
SECTION 53. Section 36.410, Water Code, is amended to read
as follows:
Sec. 36.410. PROPOSAL FOR DECISION [REPORT]. (a) Except
as provided by Subsection (e), the presiding officer shall submit a
proposal for decision [report] to the board not later than the 30th
day after the date the evidentiary [a] hearing is concluded.
(b) The proposal for decision [report] must include:
(1) a summary of the subject matter of the hearing;
(2) a summary of the evidence or public comments
received; and
(3) the presiding officer's recommendations for board
action on the subject matter of the hearing.
(c) The presiding officer or general manager shall provide a
copy of the proposal for decision [report] to:
(1) the applicant; and
(2) each [person who provided comments or each]
designated party.
(d) A party [person who receives a copy of the report under
Subsection (c)] may submit to the board written exceptions to the
proposal for decision [report].
(e) If the hearing was conducted by a quorum of the board and
if the presiding officer prepared a record of the hearing as
provided by Section 36.408(a), the presiding officer shall
determine whether to prepare and submit a proposal for decision
[report] to the board under this section.
(f) The board shall consider the proposal for decision at a
final hearing. Additional evidence may not be presented during a
final hearing. The parties may present oral argument at a final
hearing to summarize the evidence, present legal argument, or argue
an exception to the proposal for decision. A final hearing may be
continued as provided by Section 36.409.
SECTION 54. Sections 36.412(a), (b), and (c), Water Code,
are amended to read as follows:
(a) An applicant in a contested or uncontested hearing on an
application or a party to a contested hearing may administratively
appeal a decision of the board on a permit or permit amendment
application by requesting written findings and conclusions [or a
rehearing before the board] not later than the 20th day after the
date of the board's decision.
(b) On receipt of a timely written request, the board shall
make written findings and conclusions regarding a decision of the
board on a permit or permit amendment application. The board shall
provide certified copies of the findings and conclusions to the
person who requested them, and to each [person who provided
comments or each] designated party, not later than the 35th day
after the date the board receives the request. A party to a
contested hearing [person who receives a certified copy of the
findings and conclusions from the board] may request a rehearing
[before the board] not later than the 20th day after the date the
board issues the findings and conclusions.
(c) A request for rehearing must be filed in the district
office and must state the grounds for the request. If the original
hearing was a contested hearing, the party [person] requesting a
rehearing must provide copies of the request to all parties to the
hearing.
SECTION 55. Section 36.415(b), Water Code, is amended to
read as follows:
(b) In adopting the rules, a district shall:
(1) define under what circumstances an application is
considered contested; [and]
(2) limit participation in a hearing on a contested
application to persons who have a personal justiciable interest
related to a legal right, duty, privilege, power, or economic
interest that is within a district's regulatory authority and
affected by a permit or permit amendment application, not including
persons who have an interest common to members of the public; and
(3) establish the deadline for a person who may
participate under Subdivision (2) to file in the manner required by
the district a protest and request for a contested case hearing.
SECTION 56. Section 36.416, Water Code, is amended by
adding Subsections (d), (e), and (f) to read as follows:
(d) An administrative law judge who conducts a contested
case hearing shall consider applicable district rules or policies
in conducting the hearing, but the district deciding the case may
not supervise the administrative law judge.
(e) A district shall provide the administrative law judge
with a written statement of applicable rules or policies.
(f) A district may not attempt to influence the finding of
facts or the administrative law judge's application of the law in a
contested case except by proper evidence and legal argument.
SECTION 57. Section 36.4165, Water Code, is amended to read
as follows:
Sec. 36.4165. FINAL DECISION; CONTESTED CASE HEARINGS. (a)
In a proceeding for a permit application or amendment in which a
district has contracted with the State Office of Administrative
Hearings for a contested case hearing, the board has the authority
to make a final decision on consideration of a proposal for decision
issued by an administrative law judge [consistent with Section
2001.058, Government Code].
(b) A board may change a finding of fact or conclusion of law
made by the administrative law judge, or may vacate or modify an
order issued by the administrative judge, only if the board
determines:
(1) that the administrative law judge did not properly
apply or interpret applicable law, district rules, written policies
provided under Section 36.416(e), or prior administrative
decisions;
(2) that a prior administrative decision on which the
administrative law judge relied is incorrect or should be changed;
or
(3) that a technical error in a finding of fact should
be changed.
SECTION 58. Section 36.1082, Water Code, is repealed.
SECTION 59. The Texas Water Development Board shall conduct
a study to define the quality and quantity of groundwater in this
state in confined and unconfined aquifers. In conducting the
study, the board shall produce a map that shows the area and water
quality of confined and unconfined groundwater aquifers.
SECTION 60. Not later than December 31, 2016, the Texas
Water Development Board shall report the results of the study
conducted under this Act to the lieutenant governor, the speaker of
the house of representatives, and the standing committees in the
senate and the house of representatives that have jurisdiction over
natural resources.
SECTION 61. The Texas Commission on Environmental Quality
shall adopt the standards required by Section 341.039, Health and
Safety Code, as amended by this Act, and Section 26.0311, Water
Code, as amended by this Act, not later than January 1, 2016.
SECTION 62. This Act applies only to an application for a
water right or an amendment to a permit, certified filing, or
certificate of adjudication authorizing an interbasin transfer of
water that is accepted for filing on or after the effective date of
this Act. An application for a water right or an amendment to a
permit, certified filing, or certificate of adjudication
authorizing an interbasin transfer of water that is accepted for
filing before the effective date of this Act is governed by the law
in effect at the time the application is accepted for filing, and
the former law is continued in effect for that purpose.
SECTION 63. The changes in law made by this Act apply only
to an application for a permit or a permit amendment that is
received by a groundwater conservation district on or after the
effective date of this Act. An application for a permit or permit
amendment that is received before the effective date of this Act is
governed by the law in effect on the date the application is
received, and that law is continued in effect for that purpose.
SECTION 64. This Act takes effect September 1, 2015.