Texas 2015 - 84th Regular

Texas Senate Bill SB1588 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Estes S.B. No. 1588
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the management of the water resources of the state.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. The heading to Chapter 1502, Government Code, is
9	9	amended to read as follows:
10	10	CHAPTER 1502. PUBLIC SECURITIES FOR MUNICIPAL UTILITIES, PARKS,
11	11	[OR] POOLS, OR WATER CONSERVATION INFRASTRUCTURE
12	12	SECTION 2. Section 1502.001, Government Code, is amended by
13	13	adding Subdivision (4) to read as follows:
14	14	(4) "Water conservation infrastructure" means
15	15	property, interests in property, buildings, structures,
16	16	activities, services, operations, or other facilities owned by a
17	17	municipality or any person contracting with a municipality that is
18	18	found by the governing body of the municipality to conserve,
19	19	preserve, or treat water, wastewater, stormwater, or other water
20	20	resources of the municipality.
21	21	SECTION 3. The heading to Section 1502.002, Government
22	22	Code, is amended to read as follows:
23	23	Sec. 1502.002. GENERAL AUTHORITY FOR UTILITY SYSTEMS,
24	24	PARKS, [AND] POOLS, AND WATER CONSERVATION INFRASTRUCTURE.
25	25	SECTION 4. Section 1502.002(a), Government Code, is amended
26	26	to read as follows:
27	27	(a) A municipality may acquire, purchase, construct,
28	28	improve, enlarge, equip, operate, or maintain any property,
29	29	including channels or bodies of water known as resacas, interests
30	30	in property, buildings, structures, activities, services,
31	31	operations, or other facilities, with respect to:
32	32	(1) a utility system;
33	33	(2) a park; [or]
34	34	(3) a swimming pool; or
35	35	(4) water conservation infrastructure.
36	36	SECTION 5. Subchapter A, Chapter 1502, Government Code, is
37	37	amended by adding Sections 1502.005 and 1502.006 to read as
38	38	follows:
39	39	Sec. 1502.005. DECLARATION OF PUBLIC PURPOSE. Under
40	40	Section 52-a, Article III, Texas Constitution, a municipality may
41	41	undertake to provide or provide funding for water conservation
42	42	infrastructure in accordance with this chapter that the
43	43	municipality determines to be:
44	44	(1) in furtherance of the development and
45	45	diversification of the economy of the municipality;
46	46	(2) in furtherance of the conservation, preservation,
47	47	or treatment of water resources of the municipality; and
48	48	(3) beneficial to the operation of its utility system.
49	49	Sec. 1502.006. ADDITIONAL POWERS RELATED TO PROVISION OF
50	50	WATER CONSERVATION INFRASTRUCTURE. A municipality may exercise any
51	51	power granted to the municipality by Chapter 380, Local Government
52	52	Code, in providing or providing funding for water conservation
53	53	infrastructure under this chapter.
54	54	SECTION 6. The heading to Subchapter B, Chapter 1502,
55	55	Government Code, is amended to read as follows:
56	56	SUBCHAPTER B. PUBLIC SECURITIES FOR UTILITY SYSTEMS, PARKS, [OR]
57	57	POOLS, OR WATER CONSERVATION INFRASTRUCTURE
58	58	SECTION 7. Section 1502.051(a), Government Code, is amended
59	59	to read as follows:
60	60	(a) The governing body of a municipality may provide funds
61	61	to acquire, purchase, construct, improve, renovate, enlarge, or
62	62	equip property, buildings, structures, facilities, or related
63	63	infrastructure for:
64	64	(1) a utility system;
65	65	(2) a park; [or]
66	66	(3) a swimming pool; or
67	67	(4) water conservation infrastructure.
68	68	SECTION 8. Section 1502.052(a), Government Code, is amended
69	69	to read as follows:
70	70	(a) The governing body of a municipality may pledge to the
71	71	payment of any public securities issued or any obligations incurred
72	72	under Section 1502.051(c) all or any part of the revenue of:
73	73	(1) a utility system;
74	74	(2) a park; [or]
75	75	(3) a swimming pool; or
76	76	(4) water conservation infrastructure.
77	77	SECTION 9. Section 1502.053, Government Code, is amended to
78	78	read as follows:
79	79	Sec. 1502.053. GRANT OF FRANCHISE. As additional security
80	80	for public securities issued or obligations incurred under this
81	81	chapter, the municipality by the terms of the encumbrance may grant
82	82	a purchaser under sale or foreclosure a franchise to operate the
83	83	encumbered utility system, park, [or] pool, or water conservation
84	84	infrastructure for a term not to exceed 20 years from the date of
85	85	purchase, subject to all laws regulating the operation of the
86	86	utility system, park, [or] pool, or water conservation
87	87	infrastructure in force at the time of the sale or foreclosure.
88	88	SECTION 10. Section 1502.054(a), Government Code, is
89	89	amended to read as follows:
90	90	(a) A public security issued or an obligation incurred under
91	91	this chapter:
92	92	(1) is not a debt of the municipality;
93	93	(2) may be a charge only on the encumbered utility
94	94	system, park, [or] pool, or water conservation infrastructure; and
95	95	(3) may not be included in determining the
96	96	municipality's power to issue public securities for any purpose
97	97	authorized by law.
98	98	SECTION 11. Section 1502.055(a), Government Code, is
99	99	amended to read as follows:
100	100	(a) Unless authorized by a majority vote of the qualified
101	101	voters of the municipality, a municipality may not sell a utility
102	102	system, park, [or] pool, or municipally owned water conservation
103	103	infrastructure.
104	104	SECTION 12. Section 1502.056(a), Government Code, is
105	105	amended to read as follows:
106	106	(a) If the revenue of a utility system, park, [or] swimming
107	107	pool, or water conservation infrastructure secures the payment of
108	108	public securities issued or obligations incurred under this
109	109	chapter, each expense of operation and maintenance, including all
110	110	salaries, labor, materials, interest, repairs and extensions
111	111	necessary to provide efficient service, and each proper item of
112	112	expense, is a first lien against that revenue. For a municipality
113	113	with a population of more than one million but less than two
114	114	million, the first lien against the revenue of a municipally owned
115	115	utility system that secures the payment of public securities issued
116	116	or obligations incurred under this chapter also applies to funding,
117	117	as a necessary operations expense, for a bill payment assistance
118	118	program for utility system customers who:
119	119	(1) have been threatened with disconnection from
120	120	service for nonpayment of bills and who have been determined by the
121	121	municipality to be low-income customers; or
122	122	(2) are military veterans who have significantly
123	123	decreased abilities to regulate their bodies' core temperatures
124	124	because of severe burns received in combat.
125	125	SECTION 13. Sections 1502.058(a) and (c), Government Code,
126	126	are amended to read as follows:
127	127	(a) Except as provided by Subsection (b) or (c), by Section
128	128	1502.059, or by Section 271.052, Local Government Code, a
129	129	municipality may not use the revenue of a utility system, park, [or]
130	130	swimming pool, or water conservation infrastructure to pay any
131	131	other debt, expense, or obligation of the municipality until the
132	132	debt secured by the revenue is finally paid.
133	133	(c) This section does not apply to a payment made from
134	134	surplus revenue of a utility system, park, [or] swimming pool, or
135	135	water conservation infrastructure, as provided by the proceedings
136	136	authorizing the issuance of public securities under this chapter.
137	137	SECTION 14. Section 1502.060(a), Government Code, is
138	138	amended to read as follows:
139	139	(a) To the extent provided by the proceedings authorizing
140	140	the issuance of the public securities issued under this chapter, a
141	141	municipality may:
142	142	(1) use proceeds from the sale of public securities
143	143	issued to provide funds for a utility system under this chapter for
144	144	any purpose authorized by Section 1502.051(a)(1) or (b);
145	145	(2) use proceeds from the sale of public securities
146	146	issued to provide funds for a park under this chapter for any
147	147	purpose authorized by Section 1502.051(a)(2); [or]
148	148	(3) use proceeds from the sale of public securities to
149	149	provide funds for a swimming pool under this chapter for any purpose
150	150	authorized by Section 1502.051(a)(3); or
151	151	(4) use proceeds from the sale of public securities
152	152	issued to provide funds for water conservation infrastructure under
153	153	this chapter for any purpose authorized by Section 1502.006 or
154	154	1502.051(a)(4).
155	155	SECTION 15. Section 1502.066, Government Code, is amended
156	156	to read as follows:
157	157	Sec. 1502.066. RECORDS. The mayor of the municipality
158	158	shall establish and maintain a complete system of records for a
159	159	utility system, park, [or] swimming pool, or water conservation
160	160	infrastructure the revenue of which is encumbered under this
161	161	chapter that:
162	162	(1) shows any free service provided and the value of
163	163	the free service; and
164	164	(2) shows separately the amounts spent and the amounts
165	165	set aside for operation, salaries, labor, materials, repairs,
166	166	maintenance, depreciation, replacements, extensions, interest, and
167	167	the creation of a sinking fund to pay the public securities and
168	168	debt.
169	169	SECTION 16. Section 1502.068, Government Code, is amended
170	170	to read as follows:
171	171	Sec. 1502.068. ANNUAL REPORT. (a) Annually, on the date
172	172	determined by the governing body of the municipality, the
173	173	superintendent or manager of a utility system, park, [or] pool, or
174	174	water conservation infrastructure or another person designated by
175	175	the governing body shall file with the mayor and governing body of
176	176	the municipality a detailed report of the operation of the system,
177	177	park, [or] pool, or water conservation infrastructure for the
178	178	preceding 12-month period specified by the governing body.
179	179	(b) The report must show the total amount of money collected
180	180	and the balance due, and the total disbursements made and the
181	181	amounts remaining unpaid, resulting from the operation of the
182	182	utility system, park, [or] pool, or water conservation
183	183	infrastructure during that year.
184	184	(c) If the municipality provides loans or grants of public
185	185	money to persons to acquire, purchase, construct, improve,
186	186	renovate, enlarge, or equip water conservation infrastructure, the
187	187	report must contain:
188	188	(1) the types of water conservation infrastructure
189	189	projects funded;
190	190	(2) the controls imposed by the municipality on the
191	191	persons receiving loans or grants to ensure that the public
192	192	purposes described by Section 1502.005 are being carried out; and
193	193	(3) an analysis of the results of how the funded water
194	194	conservation infrastructure projects achieved the intended results
195	195	in furtherance of the public purposes described by Section
196	196	1502.005.
197	197	SECTION 17. Section 1502.069(a), Government Code, is
198	198	amended to read as follows:
199	199	(a) A mayor commits an offense if the mayor fails to:
200	200	(1) establish the system of records required by
201	201	Section 1502.066 before the 91st day after the date the utility
202	202	system, park, [or] pool, or water conservation infrastructure is
203	203	completed; or
204	204	(2) maintain the system of records required by Section
205	205	1502.066.
206	206	SECTION 18. Section 1502.074, Government Code, is amended
207	207	to read as follows:
208	208	Sec. 1502.074. CIVIL ENFORCEMENT. A person who resides in a
209	209	municipality and is a taxpayer or holder of a public security issued
210	210	or an obligation incurred under this chapter and secured by the
211	211	revenue of the municipality's utility system, park, [or] swimming
212	212	pool, or water conservation infrastructure as provided by this
213	213	chapter is entitled to enforce this chapter by appropriate civil
214	214	action in a district court in the county in which the municipality
215	215	is located.
216	216	SECTION 19. Section 341.039, Health and Safety Code, is
217	217	amended by adding Subsection (a-1) and amending Subsection (c) to
218	218	read as follows:
219	219	(a-1) The standards adopted by the commission under
220	220	Subsection (a)(2) must permit the use of graywater for toilet and
221	221	urinal flushing.
222	222	(c) The commission may not require a permit for the domestic
223	223	use of less than 400 gallons of graywater each day if the graywater:
224	224	(1) originates from a private residence;
225	225	(2) is used by the occupants of that residence for
226	226	gardening, composting, [or] landscaping, or toilet or urinal
227	227	flushing at the residence;
228	228	(3) is collected using a system that overflows into a
229	229	sewage collection or on-site wastewater treatment and disposal
230	230	system;
231	231	(4) is stored in tanks that:
232	232	(A) are clearly labeled as nonpotable water;
233	233	(B) restrict access, especially to children; and
234	234	(C) eliminate habitat for mosquitoes and other
235	235	vectors;
236	236	(5) uses piping clearly identified as a nonpotable
237	237	water conduit, including identification through the use of purple
238	238	pipe, purple tape, or similar markings;
239	239	(6) is generated without the formation of ponds or
240	240	pools of graywater;
241	241	(7) does not create runoff across the property lines
242	242	or onto any paved surface; and
243	243	(8) is distributed by a surface or subsurface system
244	244	that does not spray into the air.
245	245	SECTION 20. Section 11.085(v), Water Code, is amended to
246	246	read as follows:
247	247	(v) The provisions of this section, except Subsection (a),
248	248	do not apply to:
249	249	(1) a proposed transfer which in combination with any
250	250	existing transfers totals less than 3,000 acre-feet of water per
251	251	annum from the same permit, certified filing, or certificate of
252	252	adjudication;
253	253	(2) a request for an emergency transfer of water;
254	254	(3) a proposed transfer from a basin to its adjoining
255	255	coastal basin;
256	256	(4) a proposed transfer from the part of the
257	257	geographic area of a county or municipality, or the part of the
258	258	retail service area of a retail public utility as defined by Section
259	259	13.002, that is within the basin of origin for use in that part of
260	260	the geographic area of the county or municipality, or that
261	261	contiguous part of the retail service area of the utility, not
262	262	within the basin of origin; [or]
263	263	(5) a proposed transfer of water that is:
264	264	(A) imported from a source located wholly outside
265	265	the boundaries of this state, except water that is imported from a
266	266	source located in the United Mexican States;
267	267	(B) for use in this state; and
268	268	(C) transported by using the bed and banks of any
269	269	flowing natural stream located in this state; or
270	270	(6) a proposed transfer from a basin to another basin
271	271	identified as a water management strategy or an alternate water
272	272	management strategy in the state water plan.
273	273	SECTION 21. Subchapter E, Chapter 13, Water Code, is
274	274	amended by adding Section 13.1461 to read as follows:
275	275	Sec. 13.1461. CORRECTIONAL FACILITY COMPLIANCE WITH
276	276	CONSERVATION MEASURES. A retail public utility may require the
277	277	operator of a correctional facility, as defined by Section
278	278	1.07(14), Penal Code, that receives retail water or sewer utility
279	279	service from the retail public utility to comply with water
280	280	conservation measures adopted or implemented by the retail public
281	281	utility.
282	282	SECTION 22. Subchapter J, Chapter 15, Water Code, is
283	283	amended by adding Section 15.6042 to read as follows:
284	284	Sec. 15.6042. CROSS-COLLATERALIZATION OF FUNDS. (a) In
285	285	this section, "state revolving fund bonds" means revenue bonds
286	286	issued by the board to provide funds for the revolving fund, the
287	287	safe drinking water revolving fund, or an additional state
288	288	revolving fund.
289	289	(b) Notwithstanding any other law to the contrary, the board
290	290	by resolution may approve the use of assets of the revolving fund,
291	291	the safe drinking water revolving fund, or an additional state
292	292	revolving fund as a source of revenue or security, or both revenue
293	293	and security, for the payment of the principal of and interest on
294	294	state revolving fund bonds.
295	295	SECTION 23. Section 26.0311, Water Code, is amended by
296	296	adding Subsection (b-1) to read as follows:
297	297	(b-1) The standards adopted by the commission under
298	298	Subsection (b)(2) must permit the use of graywater for toilet and
299	299	urinal flushing.
300	300	SECTION 24. Subchapter B, Chapter 27, Water Code, is
301	301	amended by adding Section 27.026 to read as follows:
302	302	Sec. 27.026. DUAL AUTHORIZATION OF INJECTION WELLS TO
303	303	INJECT NONHAZARDOUS BRINE FROM DESALINATION OPERATIONS OR
304	304	NONHAZARDOUS DRINKING WATER TREATMENT RESIDUALS. (a) The
305	305	commission may authorize by individual permit, by general permit,
306	306	or by rule a Class V injection well for the injection of
307	307	nonhazardous brine from a desalination operation or nonhazardous
308	308	drinking water treatment residuals into a Class II injection well
309	309	that is also permitted by the railroad commission under Subchapter
310	310	C.
311	311	(b) The commission and railroad commission by rule shall
312	312	enter or amend a memorandum of understanding to implement and
313	313	administer this section.
314	314	SECTION 25. Section 36.001, Water Code, is amended by
315	315	amending Subdivisions (8) and (16) and adding Subdivision (31) to
316	316	read as follows:
317	317	(8) "Waste" means any one or more of the following:
318	318	(A) withdrawal of groundwater from a groundwater
319	319	reservoir at a rate and in an amount that causes or threatens to
320	320	cause intrusion into the reservoir of water unsuitable for
321	321	agricultural, gardening, domestic, or stock raising purposes;
322	322	(B) the flowing or producing of wells from a
323	323	groundwater reservoir if the water produced is not used for a
324	324	beneficial purpose;
325	325	(C) escape of groundwater from a groundwater
326	326	reservoir to any other reservoir or geologic strata that does not
327	327	contain groundwater;
328	328	(D) pollution or harmful alteration of
329	329	groundwater in a groundwater reservoir by saltwater or by other
330	330	deleterious matter admitted from another stratum or from the
331	331	surface of the ground;
332	332	(E) willfully [wilfully] or negligently causing,
333	333	suffering, or allowing groundwater to escape into any river, creek,
334	334	natural watercourse, depression, lake, reservoir, drain, sewer,
335	335	street, highway, road, or road ditch, or onto any land other than
336	336	that of the owner of the well unless such discharge is authorized by
337	337	permit, rule, or order issued by the commission under Chapter 26;
338	338	(F) groundwater pumped for irrigation that
339	339	escapes as irrigation tailwater onto land other than that of the
340	340	owner of the well unless permission has been granted by the occupant
341	341	of the land receiving the discharge; or
342	342	(G) for water produced from an artesian well,
343	343	"waste" also has the meaning assigned by Section 11.205.
344	344	(16) "Loan fund" means the groundwater conservation
345	345	district loan assistance fund created under Section 36.371.
346	346	(31) "Operating permit" as used in this chapter means
347	347	any type of permit issued by a district that relates to the
348	348	operation of or production from a water well, which may include
349	349	authorization to drill or complete a water well if the district
350	350	does not require a separate permit for drilling or completing a
351	351	water well.
352	352	SECTION 26. Section 36.017(i), Water Code, is amended to
353	353	read as follows:
354	354	(i) If a majority of the votes cast at the election are
355	355	against the levy of a maintenance tax, the district shall set
356	356	[production] fees authorized by this chapter to pay for the
357	357	district's regulation of groundwater in the district[, including
358	358	fees based on the amount of water to be withdrawn from a well].
359	359	SECTION 27. Section 36.0171(h), Water Code, is amended to
360	360	read as follows:
361	361	(h) If the majority of the votes cast at the election are
362	362	against the levy of a maintenance tax, the district shall set
363	363	[production] fees authorized by this chapter in accordance with
364	364	Section 35.013(g-1) to pay for the district's regulation of
365	365	groundwater in the district[, including fees based on the amount of
366	366	water to be withdrawn from a well].
367	367	SECTION 28. Section 36.058, Water Code, is amended to read
368	368	as follows:
369	369	Sec. 36.058. CONFLICTS OF INTEREST. A director of a
370	370	district is subject to the provisions of Chapters [Chapter] 171 and
371	371	176, Local Government Code, relating to the regulation of conflicts
372	372	of officers of local governments.
373	373	SECTION 29. Section 36.061(a), Water Code, is amended to
374	374	read as follows:
375	375	(a) Subject to the law governing the district, the board
376	376	shall adopt the following in writing:
377	377	(1) a code of ethics for district directors, officers,
378	378	employees, and persons who are engaged in handling investments for
379	379	the district;
380	380	(2) a policy relating to travel expenditures;
381	381	(3) a policy relating to district investments that
382	382	ensures that:
383	383	(A) purchases and sales of investments are
384	384	initiated by authorized individuals, conform to investment
385	385	objectives and regulations, and are properly documented and
386	386	approved; and
387	387	(B) periodic review is made of district
388	388	investments to evaluate investment performance and security;
389	389	(4) policies and procedures for selection,
390	390	monitoring, or review and evaluation of professional services; and
391	391	(5) policies that ensure a better use of management
392	392	information, including:
393	393	(A) budgets for use in planning and controlling
394	394	cost; and
395	395	(B) an audit or finance committee of the board.[;
396	396	and
397	397	[(C) uniform reporting requirements that use
398	398	"Audits of State and Local Governmental Units" as a guide on audit
399	399	working papers and that uses "Governmental Accounting and Financial
400	400	Reporting Standards."]
401	401	SECTION 30. Section 36.116(c), Water Code, is amended to
402	402	read as follows:
403	403	(c) In regulating the production of groundwater based on
404	404	tract size or acreage, a district may consider the service needs or
405	405	service area of a retail public [water] utility. For the purposes
406	406	of this subsection, "retail public [water] utility" shall have the
407	407	meaning provided by [at] Section 13.002.
408	408	SECTION 31. Sections 36.117(a) and (d), Water Code, are
409	409	amended to read as follows:
410	410	(a) A district by rule may provide an exemption from the
411	411	district's requirement to obtain [a drilling permit, an operating
412	412	permit, or] any [other] permit required by this chapter or the
413	413	district's rules.
414	414	(d) A district may cancel a previously granted exemption[,]
415	415	and may require an operating permit for or restrict production from
416	416	a well and assess any appropriate fees[,] if:
417	417	(1) [the well is located in the Hill Country Priority
418	418	Groundwater Management Area and] the groundwater withdrawals that
419	419	were exempted under Subsection (b)(1) are no longer used solely for
420	420	domestic use or to provide water for livestock or poultry;
421	421	(2) the groundwater withdrawals that were exempted
422	422	under Subsection (b)(2) are no longer used solely to supply water
423	423	for a rig that is actively engaged in drilling or exploration
424	424	operations for an oil or gas well permitted by the Railroad
425	425	Commission of Texas; or
426	426	(3) the groundwater withdrawals that were exempted
427	427	under Subsection (b)(3) are no longer necessary for mining
428	428	activities or are greater than the amount necessary for mining
429	429	activities specified in the permit issued by the Railroad
430	430	Commission of Texas under Chapter 134, Natural Resources Code.
431	431	SECTION 32. Section 36.122(e), Water Code, is amended to
432	432	read as follows:
433	433	(e) The district may impose an export [a reasonable] fee or
434	434	surcharge [for an export fee] using one of the following methods:
435	435	(1) a fee negotiated between the district and the
436	436	exporter [transporter];
437	437	(2) a rate not to exceed the equivalent of the
438	438	district's tax rate per hundred dollars of valuation for each
439	439	thousand gallons of water exported from [transferred out of] the
440	440	district or 2.5 cents per thousand gallons of water, if the district
441	441	assesses a tax rate of less than 2.5 cents per hundred dollars of
442	442	valuation; or
443	443	(3) for a fee-based district, a 50 percent [export]
444	444	surcharge, in addition to the district's production fee, for water
445	445	exported from [transferred out of] the district.
446	446	SECTION 33. Sections 36.153(a), (b), and (d), Water Code,
447	447	are amended to read as follows:
448	448	(a) Annually and subject to Subsection (c), the board shall
449	449	have an audit made of the financial condition of the district. The
450	450	district audit shall be performed according to the generally
451	451	accepted government auditing standards adopted by the American
452	452	Institute of Certified Public Accountants.
453	453	(b) Financial statements shall be prepared in accordance
454	454	with generally accepted accounting principles as adopted by the
455	455	American Institute of Certified Public Accountants. The annual
456	456	audit and other district records must be open to inspection during
457	457	regular business hours at the principal office of the district.
458	458	(d) A financially dormant district may elect not to conduct
459	459	an audit and instead submit to the executive director a financial
460	460	dormancy affidavit [instead of complying with the audit
461	461	requirements of Section 49.191].
462	462	SECTION 34. Section 36.157(a), Water Code, is amended to
463	463	read as follows:
464	464	(a) A district, or the county or counties where the district
465	465	is to be located, may pay all costs and expenses necessarily
466	466	incurred in the creation and organization of a district, including
467	467	legal fees and other incidental expenses, and may reimburse any
468	468	person, including a county, for money advanced for these purposes.
469	469	SECTION 35. Section 36.159, Water Code, is amended to read
470	470	as follows:
471	471	Sec. 36.159. GROUNDWATER CONSERVATION DISTRICT MANAGEMENT
472	472	PLAN FUNDS. The Texas Water Development Board may allocate funds
473	473	from the water assistance fund to a district to:
474	474	(1) conduct initial data collections under this
475	475	chapter;
476	476	(2) [, to] develop and implement a long-term
477	477	management plan under Section 36.1071;[,] and
478	478	(3) [to] participate in regional water plans.
479	479	SECTION 36. Section 36.204, Water Code, is amended by
480	480	adding Subsection (c) to read as follows:
481	481	(c) Sections 26.04(c)-(j), 26.05(b), (c), (d), (e), and
482	482	(g), and 26.07, Tax Code, do not apply to a tax levied and collected
483	483	under this chapter or an ad valorem tax levied and collected for the
484	484	payment of the interest on and principal of bonds issued by a
485	485	district.
486	486	SECTION 37. Sections 36.205(f) and (g), Water Code, are
487	487	amended to read as follows:
488	488	(f) A district, including a district described under
489	489	Subsection (d), may assess a production fee under Subsection (c)
490	490	and an export fee under Subsection (g), if applicable, for any water
491	491	produced under an exemption under Section 36.117 if that water is
492	492	subsequently sold to another person.
493	493	(g) A district may assess an export [a transportation] fee
494	494	under Section 36.122.
495	495	SECTION 38. Section 36.206(a), Water Code, is amended to
496	496	read as follows:
497	497	(a) A temporary board may set [user] fees authorized by this
498	498	chapter to pay for the creation and initial operation of a district,
499	499	until such time as the district creation has been confirmed and a
500	500	permanent board has been elected by a majority vote of the qualified
501	501	voters voting in the district in an election called for those
502	502	purposes.
503	503	SECTION 39. Section 36.207, Water Code, is amended to read
504	504	as follows:
505	505	Sec. 36.207. USE OF [PERMIT] FEES [AUTHORIZED BY SPECIAL
506	506	LAW]. A district may use funds obtained from administrative,
507	507	production, or export [permit] fees collected under a [pursuant to
508	508	the] special law governing the district or this chapter for any
509	509	purpose consistent with the district's approved management plan,
510	510	including, without limitation, making grants, loans, or
511	511	contractual payments to achieve, facilitate, or expedite
512	512	reductions in groundwater pumping or the development or
513	513	distribution of alternative water supplies.
514	514	SECTION 40. Section 36.251, Water Code, is amended to read
515	515	as follows:
516	516	Sec. 36.251. SUIT AGAINST DISTRICT. (a) A person, firm,
517	517	corporation, or association of persons affected by and dissatisfied
518	518	with any [provision or with any] rule or order made by a district,
519	519	including an appeal of a decision on a permit application, is
520	520	entitled to file a suit against the district or its directors to
521	521	challenge the validity of the law, rule, or order.
522	522	(b) Only the district, the applicant, and parties to a
523	523	contested case hearing may participate in an appeal of a decision on
524	524	the application that was the subject of that contested case
525	525	hearing. An appeal of a decision on a permit application must
526	526	include the applicant as a necessary party.
527	527	(c) The suit shall be filed in a court of competent
528	528	jurisdiction in any county in which the district or any part of the
529	529	district is located. The suit may only be filed after all
530	530	administrative appeals to the district are final.
531	531	SECTION 41. Section 36.3011, Water Code, is amended to read
532	532	as follows:
533	533	Sec. 36.3011. COMMISSION INQUIRY AND ACTION REGARDING
534	534	DISTRICT DUTIES. (a) In this section, "affected person" means, with
535	535	respect to a management area:
536	536	(1) an owner of land in the management area;
537	537	(2) a groundwater conservation district or subsidence
538	538	district in or adjacent to the management area;
539	539	(3) a regional water planning group with a water
540	540	management strategy in the management area;
541	541	(4) a person who holds or is applying for a permit from
542	542	a district in the management area;
543	543	(5) a person with a legally defined interest in
544	544	groundwater in the management area; or
545	545	(6) any other person defined as affected by commission
546	546	rule.
547	547	(b) An affected person may file a petition with the
548	548	commission requesting an inquiry for any of the following reasons:
549	549	(1) a district fails to submit its management plan to
550	550	the executive administrator;
551	551	(2) a district fails to participate in the joint
552	552	planning process under Section 36.108;
553	553	(3) a district fails to adopt rules;
554	554	(4) a district fails to adopt the applicable desired
555	555	future conditions adopted by the management area at a joint
556	556	meeting;
557	557	(5) a district fails to update its management plan
558	558	before the second anniversary of the adoption of desired future
559	559	conditions by the management area;
560	560	(6) a district fails to update its rules to implement
561	561	the applicable desired future conditions before the first
562	562	anniversary of the date it updated its management plan with the
563	563	adopted desired future conditions;
564	564	(7) the rules adopted by a district are not designed to
565	565	achieve the adopted desired future conditions;
566	566	(8) the groundwater in the management area is not
567	567	adequately protected by the rules adopted by a district; or
568	568	(9) the groundwater in the management area is not
569	569	adequately protected due to the failure of a district to enforce
570	570	substantial compliance with its rules.
571	571	(c) Not later than the 90th day after the date the petition
572	572	is filed, the commission shall review the petition and either:
573	573	(1) dismiss the petition if the commission finds that
574	574	the evidence is not adequate to show that any of the conditions
575	575	alleged in the petition exist; or
576	576	(2) select a review panel as provided in Subsection
577	577	(d).
578	578	(d) If the petition is not dismissed under Subsection (c),
579	579	the commission shall appoint a review panel consisting of a
580	580	chairperson and four other members. A director or general manager
581	581	of a district located outside the management area that is the
582	582	subject of the petition may be appointed to the review panel. The
583	583	commission may not appoint more than two members of the review panel
584	584	from any one district. The commission also shall appoint a
585	585	disinterested person to serve as a nonvoting recording secretary
586	586	for the review panel. The recording secretary may be an employee of
587	587	the commission. The recording secretary shall record and document
588	588	the proceedings of the panel.
589	589	(e) Not later than the 120th day after appointment, the
590	590	review panel shall review the petition and any evidence relevant to
591	591	the petition and, in a public meeting, consider and adopt a report
592	592	to be submitted to the commission. The commission may direct the
593	593	review panel to conduct public hearings at a location in the
594	594	management area to take evidence on the petition. The review panel
595	595	may attempt to negotiate a settlement or resolve the dispute by any
596	596	lawful means.
597	597	(f) In its report, the review panel shall include:
598	598	(1) a summary of all evidence taken in any hearing on
599	599	the petition;
600	600	(2) a list of findings and recommended actions
601	601	appropriate for the commission to take and the reasons it finds
602	602	those actions appropriate; and
603	603	(3) any other information the panel considers
604	604	appropriate.
605	605	(g) The review panel shall submit its report to the
606	606	commission.
607	607	(h) Not later than the 45th day after receiving the review
608	608	panel's report under this section [Section 36.1082], the executive
609	609	director or the commission shall take action to implement any or all
610	610	of the panel's recommendations. The commission may take any action
611	611	against a district it considers necessary in accordance with
612	612	Section 36.303 if the commission finds that:
613	613	(1) the district has failed to submit its management
614	614	plan to the executive administrator;
615	615	(2) the district has failed to participate in the
616	616	joint planning process under Section 36.108;
617	617	(3) the district has failed to adopt rules;
618	618	(4) the district has failed to adopt the applicable
619	619	desired future conditions adopted by the management area at a joint
620	620	meeting;
621	621	(5) the district has failed to update its management
622	622	plan before the second anniversary of the adoption of desired
623	623	future conditions by the management area;
624	624	(6) the district has failed to update its rules to
625	625	implement the applicable desired future conditions before the first
626	626	anniversary of the date it updated its management plan with the
627	627	adopted desired future conditions;
628	628	(7) the rules adopted by the district are not designed
629	629	to achieve the desired future conditions adopted by the management
630	630	area during the joint planning process;
631	631	(8) the groundwater in the management area is not
632	632	adequately protected by the rules adopted by the district; or
633	633	(9) the groundwater in the management area is not
634	634	adequately protected because of the district's failure to enforce
635	635	substantial compliance with its rules.
636	636	SECTION 42. Section 36.303(a), Water Code, is amended to
637	637	read as follows:
638	638	(a) If Section [36.108,] 36.301, 36.3011, or 36.302(f)
639	639	applies, the commission, after notice and hearing in accordance
640	640	with Chapter 2001, Government Code, shall take action the
641	641	commission considers appropriate, including:
642	642	(1) issuing an order requiring the district to take
643	643	certain actions or to refrain from taking certain actions;
644	644	(2) dissolving the board in accordance with Sections
645	645	36.305 and 36.307 and calling an election for the purpose of
646	646	electing a new board;
647	647	(3) requesting the attorney general to bring suit for
648	648	the appointment of a receiver to collect the assets and carry on the
649	649	business of the groundwater conservation district; or
650	650	(4) dissolving the district in accordance with
651	651	Sections 36.304, 36.305, and 36.308.
652	652	SECTION 43. Section 36.321, Water Code, is amended to read
653	653	as follows:
654	654	Sec. 36.321. ADDING LAND BY PETITION OF LANDOWNER. Subject
655	655	to Section 36.331, the [The] owner of land not already in
656	656	[contiguous to] a district may file with the board a notarized
657	657	petition requesting that the owner's land be included in the
658	658	district. The petition must describe the land by legal description
659	659	or by metes and bounds or by lot and block number if there is a
660	660	recorded plat of the area to be included in the district.
661	661	SECTION 44. Section 36.325, Water Code, is amended to read
662	662	as follows:
663	663	Sec. 36.325. ADDING CERTAIN TERRITORY BY PETITION.
664	664	(a) Landowners of a defined area of territory not already in a
665	665	district may file with any district a petition requesting inclusion
666	666	in that district and, subject to Section 36.331, the defined area of
667	667	territory is not required to be contiguous with that district.
668	668	(b) The petition must be signed by:
669	669	(1) a majority of the landowners in the territory;
670	670	(2) at least 50 landowners if the number of landowners
671	671	is more than 50; or
672	672	(3) the commissioners court of the county in which the
673	673	area is located if the area is identified as a priority groundwater
674	674	management area or includes the entire county.
675	675	(c) The petition must describe the land by legal description
676	676	or by metes and bounds or by lot and block number if there is a
677	677	recorded plat of the area to be included in the district.
678	678	SECTION 45. Section 36.328(a), Water Code, is amended to
679	679	read as follows:
680	680	(a) Annexation of the territory by petition filed under
681	681	Section 36.325 is not final until ratified by a majority vote of the
682	682	voters in the territory to be added. An election in the existing
683	683	district accepting the addition of land is not required.
684	684	SECTION 46. The heading to Subchapter L, Chapter 36, Water
685	685	Code, is amended to read as follows:
686	686	SUBCHAPTER L. GROUNDWATER CONSERVATION DISTRICT LOAN ASSISTANCE
687	687	FUND
688	688	SECTION 47. Section 36.371, Water Code, is amended to read
689	689	as follows:
690	690	Sec. 36.371. GROUNDWATER CONSERVATION DISTRICT LOAN
691	691	ASSISTANCE FUND. (a) The groundwater conservation district loan
692	692	assistance fund is created, to be funded by direct appropriation
693	693	and by the Texas Water Development Board from the water assistance
694	694	fund.
695	695	(b) Repayments of loans shall be deposited in the water
696	696	assistance fund.
697	697	SECTION 48. Section 36.403, Water Code, is amended to read
698	698	as follows:
699	699	Sec. 36.403. SCHEDULING OF PUBLIC HEARING. (a) The
700	700	general manager or board may schedule a public hearing on permit or
701	701	permit amendment applications received by the district as
702	702	necessary, as provided by Section 36.114.
703	703	(b) The general manager or board may schedule more than one
704	704	application for consideration at a public hearing.
705	705	(c) A public hearing must be held at the district office or
706	706	regular meeting location of the board unless the board provides for
707	707	hearings to be held at a different location.
708	708	(d) A public hearing may be held in conjunction with a
709	709	regularly scheduled board meeting.
710	710	SECTION 49. Sections 36.404(a) and (d), Water Code, are
711	711	amended to read as follows:
712	712	(a) If the general manager or board schedules a public
713	713	hearing on an application for a permit or permit amendment, the
714	714	general manager or board shall give notice of the hearing as
715	715	provided by this section.
716	716	(d) A person may request notice from the district of a
717	717	public hearing on a permit or a permit amendment application. The
718	718	request must be in writing and is effective for the remainder of the
719	719	calendar year in which the request is received by the district. To
720	720	receive notice of a public hearing in a later year, a person must
721	721	submit a new request. An affidavit of an officer or employee of the
722	722	district establishing attempted service by first class mail,
723	723	facsimile, or e-mail to the person in accordance with the
724	724	information provided by the person is proof that notice was
725	725	provided by the district.
726	726	SECTION 50. Section 36.405, Water Code, is amended to read
727	727	as follows:
728	728	Sec. 36.405. HEARING REGISTRATION. The district may
729	729	require each person who participates in a public hearing to submit a
730	730	hearing registration form stating:
731	731	(1) the person's name;
732	732	(2) the person's address; and
733	733	(3) whom the person represents, if the person is not
734	734	there in the person's individual capacity.
735	735	SECTION 51. Subchapter M, Chapter 36, Water Code, is
736	736	amended by adding Section 36.4051 to read as follows:
737	737	Sec. 36.4051. BOARD ACTION; CONTESTED CASE HEARING
738	738	REQUESTS; PRELIMINARY HEARING. (a) The board may take action on
739	739	any uncontested application at a properly noticed public meeting
740	740	held at any time after the public hearing at which the application
741	741	is scheduled to be heard. The board may issue a written order to:
742	742	(1) grant the application;
743	743	(2) grant the application with special conditions; or
744	744	(3) deny the application.
745	745	(b) The board shall schedule a preliminary hearing to hear a
746	746	request for a contested case hearing filed in accordance with rules
747	747	adopted under Section 36.415. The preliminary hearing may be
748	748	conducted by:
749	749	(1) a quorum of the board;
750	750	(2) an individual to whom the board has delegated in
751	751	writing the responsibility to preside as a hearing examiner over
752	752	the hearing or matters related to the hearing; or
753	753	(3) the State Office of Administrative Hearings under
754	754	Section 36.416.
755	755	(c) Following a preliminary hearing, the board shall
756	756	determine whether any person requesting the contested case hearing
757	757	has standing to make that request and whether a justiciable issue
758	758	related to the application has been raised. If the board determines
759	759	that no person who requested a contested case hearing had standing
760	760	or that no justiciable issues were raised, the board may take any
761	761	action authorized under Subsection (a).
762	762	(d) An applicant may, not later than the 20th day after the
763	763	date the board issues an order granting the application, demand a
764	764	contested case hearing if the order:
765	765	(1) includes special conditions that were not part of
766	766	the application as finally submitted; or
767	767	(2) grants a maximum amount of groundwater production
768	768	that is less than the amount requested in the application.
769	769	SECTION 52. Section 36.406(d), Water Code, is amended to
770	770	read as follows:
771	771	(d) The presiding officer may:
772	772	(1) convene the hearing at the time and place
773	773	specified in the notice;
774	774	(2) set any necessary additional hearing dates;
775	775	(3) designate the parties regarding a contested
776	776	application;
777	777	(4) establish the order for presentation of evidence;
778	778	(5) administer oaths to all persons presenting
779	779	testimony;
780	780	(6) examine persons presenting testimony;
781	781	(7) ensure that information and testimony are
782	782	introduced as conveniently and expeditiously as possible without
783	783	prejudicing the rights of any party;
784	784	(8) prescribe reasonable time limits for testimony and
785	785	the presentation of evidence; [and]
786	786	(9) exercise the procedural rules adopted under
787	787	Section 36.415; and
788	788	(10) determine how to apportion among the parties the
789	789	costs related to:
790	790	(A) a contract for the services of a presiding
791	791	officer; and
792	792	(B) the preparation of the official hearing
793	793	record.
794	794	SECTION 53. Section 36.410, Water Code, is amended to read
795	795	as follows:
796	796	Sec. 36.410. PROPOSAL FOR DECISION [REPORT]. (a) Except
797	797	as provided by Subsection (e), the presiding officer shall submit a
798	798	proposal for decision [report] to the board not later than the 30th
799	799	day after the date the evidentiary [a] hearing is concluded.
800	800	(b) The proposal for decision [report] must include:
801	801	(1) a summary of the subject matter of the hearing;
802	802	(2) a summary of the evidence or public comments
803	803	received; and
804	804	(3) the presiding officer's recommendations for board
805	805	action on the subject matter of the hearing.
806	806	(c) The presiding officer or general manager shall provide a
807	807	copy of the proposal for decision [report] to:
808	808	(1) the applicant; and
809	809	(2) each [person who provided comments or each]
810	810	designated party.
811	811	(d) A party [person who receives a copy of the report under
812	812	Subsection (c)] may submit to the board written exceptions to the
813	813	proposal for decision [report].
814	814	(e) If the hearing was conducted by a quorum of the board and
815	815	if the presiding officer prepared a record of the hearing as
816	816	provided by Section 36.408(a), the presiding officer shall
817	817	determine whether to prepare and submit a proposal for decision
818	818	[report] to the board under this section.
819	819	(f) The board shall consider the proposal for decision at a
820	820	final hearing. Additional evidence may not be presented during a
821	821	final hearing. The parties may present oral argument at a final
822	822	hearing to summarize the evidence, present legal argument, or argue
823	823	an exception to the proposal for decision. A final hearing may be
824	824	continued as provided by Section 36.409.
825	825	SECTION 54. Sections 36.412(a), (b), and (c), Water Code,
826	826	are amended to read as follows:
827	827	(a) An applicant in a contested or uncontested hearing on an
828	828	application or a party to a contested hearing may administratively
829	829	appeal a decision of the board on a permit or permit amendment
830	830	application by requesting written findings and conclusions [or a
831	831	rehearing before the board] not later than the 20th day after the
832	832	date of the board's decision.
833	833	(b) On receipt of a timely written request, the board shall
834	834	make written findings and conclusions regarding a decision of the
835	835	board on a permit or permit amendment application. The board shall
836	836	provide certified copies of the findings and conclusions to the
837	837	person who requested them, and to each [person who provided
838	838	comments or each] designated party, not later than the 35th day
839	839	after the date the board receives the request. A party to a
840	840	contested hearing [person who receives a certified copy of the
841	841	findings and conclusions from the board] may request a rehearing
842	842	[before the board] not later than the 20th day after the date the
843	843	board issues the findings and conclusions.
844	844	(c) A request for rehearing must be filed in the district
845	845	office and must state the grounds for the request. If the original
846	846	hearing was a contested hearing, the party [person] requesting a
847	847	rehearing must provide copies of the request to all parties to the
848	848	hearing.
849	849	SECTION 55. Section 36.415(b), Water Code, is amended to
850	850	read as follows:
851	851	(b) In adopting the rules, a district shall:
852	852	(1) define under what circumstances an application is
853	853	considered contested; [and]
854	854	(2) limit participation in a hearing on a contested
855	855	application to persons who have a personal justiciable interest
856	856	related to a legal right, duty, privilege, power, or economic
857	857	interest that is within a district's regulatory authority and
858	858	affected by a permit or permit amendment application, not including
859	859	persons who have an interest common to members of the public; and
860	860	(3) establish the deadline for a person who may
861	861	participate under Subdivision (2) to file in the manner required by
862	862	the district a protest and request for a contested case hearing.
863	863	SECTION 56. Section 36.416, Water Code, is amended by
864	864	adding Subsections (d), (e), and (f) to read as follows:
865	865	(d) An administrative law judge who conducts a contested
866	866	case hearing shall consider applicable district rules or policies
867	867	in conducting the hearing, but the district deciding the case may
868	868	not supervise the administrative law judge.
869	869	(e) A district shall provide the administrative law judge
870	870	with a written statement of applicable rules or policies.
871	871	(f) A district may not attempt to influence the finding of
872	872	facts or the administrative law judge's application of the law in a
873	873	contested case except by proper evidence and legal argument.
874	874	SECTION 57. Section 36.4165, Water Code, is amended to read
875	875	as follows:
876	876	Sec. 36.4165. FINAL DECISION; CONTESTED CASE HEARINGS. (a)
877	877	In a proceeding for a permit application or amendment in which a
878	878	district has contracted with the State Office of Administrative
879	879	Hearings for a contested case hearing, the board has the authority
880	880	to make a final decision on consideration of a proposal for decision
881	881	issued by an administrative law judge [consistent with Section
882	882	2001.058, Government Code].
883	883	(b) A board may change a finding of fact or conclusion of law
884	884	made by the administrative law judge, or may vacate or modify an
885	885	order issued by the administrative judge, only if the board
886	886	determines:
887	887	(1) that the administrative law judge did not properly
888	888	apply or interpret applicable law, district rules, written policies
889	889	provided under Section 36.416(e), or prior administrative
890	890	decisions;
891	891	(2) that a prior administrative decision on which the
892	892	administrative law judge relied is incorrect or should be changed;
893	893	or
894	894	(3) that a technical error in a finding of fact should
895	895	be changed.
896	896	SECTION 58. Section 36.1082, Water Code, is repealed.
897	897	SECTION 59. The Texas Water Development Board shall conduct
898	898	a study to define the quality and quantity of groundwater in this
899	899	state in confined and unconfined aquifers. In conducting the
900	900	study, the board shall produce a map that shows the area and water
901	901	quality of confined and unconfined groundwater aquifers.
902	902	SECTION 60. Not later than December 31, 2016, the Texas
903	903	Water Development Board shall report the results of the study
904	904	conducted under this Act to the lieutenant governor, the speaker of
905	905	the house of representatives, and the standing committees in the
906	906	senate and the house of representatives that have jurisdiction over
907	907	natural resources.
908	908	SECTION 61. The Texas Commission on Environmental Quality
909	909	shall adopt the standards required by Section 341.039, Health and
910	910	Safety Code, as amended by this Act, and Section 26.0311, Water
911	911	Code, as amended by this Act, not later than January 1, 2016.
912	912	SECTION 62. This Act applies only to an application for a
913	913	water right or an amendment to a permit, certified filing, or
914	914	certificate of adjudication authorizing an interbasin transfer of
915	915	water that is accepted for filing on or after the effective date of
916	916	this Act. An application for a water right or an amendment to a
917	917	permit, certified filing, or certificate of adjudication
918	918	authorizing an interbasin transfer of water that is accepted for
919	919	filing before the effective date of this Act is governed by the law
920	920	in effect at the time the application is accepted for filing, and
921	921	the former law is continued in effect for that purpose.
922	922	SECTION 63. The changes in law made by this Act apply only
923	923	to an application for a permit or a permit amendment that is
924	924	received by a groundwater conservation district on or after the
925	925	effective date of this Act. An application for a permit or permit
926	926	amendment that is received before the effective date of this Act is
927	927	governed by the law in effect on the date the application is
928	928	received, and that law is continued in effect for that purpose.
929	929	SECTION 64. This Act takes effect September 1, 2015.