Texas 2019 - 86th Regular

Texas House Bill HB3998 Compare Versions

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

Old	New	Differences
1	1	86R11974 SLB-F
2	2	By: Wilson H.B. No. 3998
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the transfer of the administration of surface water
8	8	rights permitting from the Texas Commission on Environmental
9	9	Quality to the Texas Water Development Board and the regulation of
10	10	groundwater; authorizing fees; authorizing civil penalties.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 111.002, Natural Resources Code, is
13	13	amended to read as follows:
14	14	Sec. 111.002. COMMON CARRIERS UNDER CHAPTER. A person is a
15	15	common carrier subject to the provisions of this chapter if it:
16	16	(1) owns, operates, or manages a pipeline or any part
17	17	of a pipeline in the State of Texas for the transportation of crude
18	18	petroleum or nonpotable water to or for the public for hire, or
19	19	engages in the business of transporting crude petroleum or
20	20	nonpotable water to another person by pipeline;
21	21	(2) owns, operates, or manages a pipeline or any part
22	22	of a pipeline in the State of Texas for the transportation of crude
23	23	petroleum to or for the public for hire and the pipeline is
24	24	constructed or maintained on, over, or under a public road or
25	25	highway, or is an entity in favor of whom the right of eminent
26	26	domain exists;
27	27	(3) owns, operates, or manages a pipeline or any part
28	28	of a pipeline in the State of Texas for the transportation of crude
29	29	petroleum to or for the public for hire which is or may be
30	30	constructed, operated, or maintained across, on, along, over, or
31	31	under the right-of-way of a railroad, corporation, or other common
32	32	carrier required by law to transport crude petroleum as a common
33	33	carrier;
34	34	(4) under lease, contract of purchase, agreement to
35	35	buy or sell, or other agreement or arrangement of any kind, owns,
36	36	operates, manages, or participates in ownership, operation, or
37	37	management of a pipeline or part of a pipeline in the State of Texas
38	38	for the transportation of crude petroleum, bought of others, from
39	39	an oil field or place of production within this state to any
40	40	distributing, refining, or marketing center or reshipping point
41	41	within this state;
42	42	(5) owns, operates, or manages, wholly or partially,
43	43	pipelines for the transportation for hire of coal in whatever form
44	44	or of any mixture of substances including coal in whatever form;
45	45	(6) owns, operates, or manages, wholly or partially,
46	46	pipelines for the transportation of carbon dioxide or hydrogen in
47	47	whatever form to or for the public for hire, but only if such person
48	48	files with the commission a written acceptance of the provisions of
49	49	this chapter expressly agreeing that, in consideration of the
50	50	rights acquired, it becomes a common carrier subject to the duties
51	51	and obligations conferred or imposed by this chapter; or
52	52	(7) owns, operates, or manages a pipeline or any part
53	53	of a pipeline in the State of Texas for the transportation of
54	54	feedstock for carbon gasification, the products of carbon
55	55	gasification, or the derivative products of carbon gasification, in
56	56	whatever form, to or for the public for hire, but only if the person
57	57	files with the commission a written acceptance of the provisions of
58	58	this chapter expressly agreeing that, in consideration of the
59	59	rights acquired, it becomes a common carrier subject to the duties
60	60	and obligations conferred or imposed by this chapter.
61	61	SECTION 2. Section 5.012, Water Code, is amended to read as
62	62	follows:
63	63	Sec. 5.012. DECLARATION OF POLICY. (a) The commission is
64	64	the agency of the state given primary responsibility for
65	65	implementing the constitution and laws of this state relating to
66	66	the conservation of natural resources and the protection of the
67	67	environment.
68	68	(b) The board is the agency of the state given primary
69	69	responsibility for implementing the constitution and laws of this
70	70	state relating to the conservation of water resources.
71	71	SECTION 3. Section 5.013(a), Water Code, is amended to read
72	72	as follows:
73	73	(a) The commission has general jurisdiction over:
74	74	(1) [water and water rights including the issuance of
75	75	water rights permits, water rights adjudication, cancellation of
76	76	water rights, and enforcement of water rights;
77	77	[(2)] continuing supervision over districts created
78	78	under Article III, Sections 52(b)(1) and (2), and Article XVI,
79	79	Section 59, of the Texas Constitution;
80	80	(2) [(3)] the state's water quality program including
81	81	issuance of permits, enforcement of water quality rules, standards,
82	82	orders, and permits, and water quality planning;
83	83	(3) [(4)] the determination of the feasibility of
84	84	certain federal projects;
85	85	(4) [(5)] the adoption and enforcement of rules and
86	86	performance of other acts relating to the safe construction,
87	87	maintenance, and removal of dams;
88	88	(5) [(6)] conduct of the state's hazardous spill
89	89	prevention and control program;
90	90	(6) [(7)] the administration of the state's program
91	91	relating to inactive hazardous substance, pollutant, and
92	92	contaminant disposal facilities;
93	93	(7) [(8)] the administration of a portion of the
94	94	state's injection well program;
95	95	(8) [(9)] the administration of the state's programs
96	96	involving underground water and water wells and drilled and mined
97	97	shafts;
98	98	(9) [(10)] the state's responsibilities relating to
99	99	regional waste disposal;
100	100	(10) [(11)] the responsibilities assigned to the
101	101	commission by Chapters 361, 363, 382, 401, 505, 506, and 507, Health
102	102	and Safety Code; and
103	103	(11) [(12)] any other areas assigned to the commission
104	104	by this code and other laws of this state.
105	105	SECTION 4. Section 5.501(b), Water Code, is amended to read
106	106	as follows:
107	107	(b) The commission may issue an emergency order under this
108	108	subchapter after providing the notice and opportunity for hearing
109	109	that the commission considers practicable under the circumstances
110	110	or without notice or hearing. Notice [Except as provided by Section
111	111	5.506, notice] must be given not later than the 10th day before the
112	112	date set for a hearing if the commission requires notice and hearing
113	113	before issuing the order. The commission shall give notice not
114	114	later than the 20th day before the date set for a hearing on a
115	115	temporary order.
116	116	SECTION 5. Section 5.701(q), Water Code, is amended to read
117	117	as follows:
118	118	(q) Notwithstanding any other law, fees collected for
119	119	deposit to the water resource management account under the
120	120	following statutes may be appropriated and used to protect water
121	121	resources in this state, including assessment of water quality,
122	122	reasonably related to the activities of any of the persons required
123	123	to pay a fee under:
124	124	(1) Subsection [Subsections] (b) [and (c)], to the
125	125	extent those fees are collected in connection with [water use or]
126	126	water quality permits;
127	127	(2) [Subsections (h)-(l);
128	128	[(3) Section 11.138(g);
129	129	[(4) Section 11.145;
130	130	[(5)] Section 26.0135(h);
131	131	(3) [(6)] Sections 26.0291, 26.044, and 26.0461; or
132	132	(4) [(7)] Sections 341.041, 366.058, 366.059,
133	133	371.024, 371.026, and 371.062, Health and Safety Code.
134	134	SECTION 6. Section 6.012(a), Water Code, is amended to read
135	135	as follows:
136	136	(a) The board has general jurisdiction over:
137	137	(1) the development and implementation of a statewide
138	138	water plan;
139	139	(2) the administration of the state's various water
140	140	assistance and financing programs including those created by the
141	141	constitution;
142	142	(3) the administration of the National Flood Insurance
143	143	Program; [and]
144	144	(4) water and water rights, including the issuance of
145	145	water rights permits, water rights adjudication, cancellation of
146	146	water rights, and enforcement of water rights; and
147	147	(5) other areas specifically assigned to the board by
148	148	this code or other law.
149	149	SECTION 7. Section 7.051(b), Water Code, is amended to read
150	150	as follows:
151	151	(b) This subchapter does not apply to violations of Chapter
152	152	[11,] 12, 13, 16, or 36 of this code, or Chapter 341, Health and
153	153	Safety Code.
154	154	SECTION 8. Section 7.102, Water Code, is amended to read as
155	155	follows:
156	156	Sec. 7.102. MAXIMUM PENALTY. A person who causes, suffers,
157	157	allows, or permits a violation of a statute, rule, order, or permit
158	158	relating to Chapter 37 of this code, Chapter 366, 371, or 372,
159	159	Health and Safety Code, Subchapter G, Chapter 382, Health and
160	160	Safety Code, or Chapter 1903, Occupations Code, shall be assessed
161	161	for each violation a civil penalty not less than $50 nor greater
162	162	than $5,000 for each day of each violation as the court or jury
163	163	considers proper. A person who causes, suffers, allows, or permits
164	164	a violation of a statute, rule, order, or permit relating to any
165	165	other matter within the commission's jurisdiction to enforce, other
166	166	than violations of Chapter [11,] 12, 13, 16, or 36 of this code, or
167	167	Chapter 341, Health and Safety Code, shall be assessed for each
168	168	violation a civil penalty not less than $50 nor greater than $25,000
169	169	for each day of each violation as the court or jury considers
170	170	proper. Each day of a continuing violation is a separate violation.
171	171	SECTION 9. Section 11.002, Water Code, is amended by adding
172	172	Subdivision (2-a) and amending Subdivisions (6), (17), and (20) to
173	173	read as follows:
174	174	(2-a) "Executive administrator" means the executive
175	175	administrator of the Texas Water Development Board.
176	176	(6) "Appropriator" means a person who has made
177	177	beneficial use of any water in a lawful manner under the provisions
178	178	of any act of the legislature before the enactment of Chapter 171,
179	179	General Laws, Acts of the 33rd Legislature, 1913, as amended, and
180	180	who has filed with the State Board of Water Engineers a record of
181	181	the [his] appropriation as required by the 1913 Act, as amended, or
182	182	a person who makes or has made beneficial use of any water within
183	183	the limitations of a permit lawfully issued by the board
184	184	[commission] or one of its predecessors.
185	185	(17) "Environmental flow standards" means those
186	186	requirements adopted by the board [commission] under Section
187	187	11.1471.
188	188	(20) "Best management practices" means those
189	189	voluntary efficiency measures developed by the [commission and the]
190	190	board that save a quantifiable amount of water, either directly or
191	191	indirectly, and that can be implemented within a specified time
192	192	frame.
193	193	SECTION 10. Section 11.004, Water Code, is amended to read
194	194	as follows:
195	195	Sec. 11.004. BOARD [COMMISSION] TO RECEIVE CERTIFIED COPIES
196	196	OF JUDGMENTS, ETC. When any court of record renders a judgment,
197	197	decree, or order affecting the title to any water right, claim,
198	198	appropriation, or irrigation facility or affecting any matter over
199	199	which the board [commission] is given supervision by law, the clerk
200	200	of the court shall immediately transmit to the board [commission] a
201	201	certified copy of the judgment, decree, or order.
202	202	SECTION 11. Sections 11.023(a) and (e), Water Code, are
203	203	amended to read as follows:
204	204	(a) To the extent that state water has not been set aside by
205	205	the board [commission] under Section 11.1471(a)(2) to meet
206	206	downstream instream flow needs or freshwater inflow needs, state
207	207	water may be appropriated, stored, or diverted for:
208	208	(1) domestic and municipal uses, including water for
209	209	sustaining human life and the life of domestic animals;
210	210	(2) agricultural uses and industrial uses, meaning
211	211	processes designed to convert materials of a lower order of value
212	212	into forms having greater usability and commercial value, including
213	213	the development of power by means other than hydroelectric;
214	214	(3) mining and recovery of minerals;
215	215	(4) hydroelectric power;
216	216	(5) navigation;
217	217	(6) recreation and pleasure;
218	218	(7) public parks; and
219	219	(8) game preserves.
220	220	(e) The amount of water appropriated for each purpose
221	221	mentioned in this section shall be specifically appropriated for
222	222	that purpose, subject to the preferences prescribed in Section
223	223	11.024 [of this code]. The board [commission] may authorize
224	224	appropriation of a single amount or volume of water for more than
225	225	one purpose of use. In the event that a single amount or volume of
226	226	water is appropriated for more than one purpose of use, the total
227	227	amount of water actually diverted for all of the authorized
228	228	purposes may not exceed the total amount of water appropriated.
229	229	SECTION 12. Sections 11.0235(c) and (d-3), Water Code, are
230	230	amended to read as follows:
231	231	(c) The legislature has expressly required the board
232	232	[commission] while balancing all other public interests to consider
233	233	and, to the extent practicable, provide for the freshwater inflows
234	234	and instream flows necessary to maintain the viability of the
235	235	state's streams, rivers, and bay and estuary systems in the board's
236	236	[commission's] regular granting of permits for the use of state
237	237	waters. As an essential part of the state's environmental flows
238	238	policy, all permit conditions relating to freshwater inflows to
239	239	affected bays and estuaries and instream flow needs must be subject
240	240	to temporary suspension if necessary for water to be applied to
241	241	essential beneficial uses during emergencies.
242	242	(d-3) The legislature finds that:
243	243	(1) in those basins in which water is available for
244	244	appropriation, the board [commission] should establish an
245	245	environmental set-aside below which water should not be available
246	246	for appropriation; and
247	247	(2) in those basins in which the unappropriated water
248	248	that will be set aside for instream flow and freshwater inflow
249	249	protection is not sufficient to fully satisfy the environmental
250	250	flow standards established by the board [commission], a variety of
251	251	market approaches, both public and private, for filling the gap
252	252	must be explored and pursued.
253	253	SECTION 13. Sections 11.0236(h) and (m), Water Code, are
254	254	amended to read as follows:
255	255	(h) The board [commission] shall provide staff support for
256	256	the advisory group.
257	257	(m) The advisory group is abolished on the date that the
258	258	board [commission] has adopted environmental flow standards under
259	259	Section 11.1471 for all of the river basin and bay systems in this
260	260	state.
261	261	SECTION 14. Sections 11.02361(e) and (f), Water Code, are
262	262	amended to read as follows:
263	263	(e) The science advisory committee shall:
264	264	(1) serve as an objective scientific body to advise
265	265	and make recommendations to the advisory group on issues relating
266	266	to the science of environmental flow protection; and
267	267	(2) develop recommendations to help provide overall
268	268	direction, coordination, and consistency relating to:
269	269	(A) environmental flow methodologies for bay and
270	270	estuary studies and instream flow studies;
271	271	(B) environmental flow programs at the board and
272	272	[commission,] the Parks and Wildlife Department[, and the board];
273	273	and
274	274	(C) the work of the basin and bay expert science
275	275	teams described in Section 11.02362.
276	276	(f) To assist the advisory group to assess the extent to
277	277	which the recommendations of the science advisory committee are
278	278	considered and implemented, the board and [commission,] the Parks
279	279	and Wildlife Department[, and the board] shall provide written
280	280	reports to the advisory group, at intervals determined by the
281	281	advisory group, that describe:
282	282	(1) the actions taken by each agency in response to
283	283	each recommendation; and
284	284	(2) for each recommendation not implemented, the
285	285	reason it was not implemented.
286	286	SECTION 15. Section 11.0237, Water Code, is amended to read
287	287	as follows:
288	288	Sec. 11.0237. WATER RIGHTS FOR INSTREAM FLOWS DEDICATED TO
289	289	ENVIRONMENTAL NEEDS OR BAY AND ESTUARY INFLOWS. (a) The board
290	290	[commission] may not issue a new permit for instream flows
291	291	dedicated to environmental needs or bay and estuary inflows. The
292	292	board [commission] may approve an application to amend an existing
293	293	permit or certificate of adjudication to change the use to or add a
294	294	use for instream flows dedicated to environmental needs or bay and
295	295	estuary inflows.
296	296	(b) This section does not alter the board's [commission's]
297	297	obligations under Section 11.042(a-1), (b), or (c), 11.046(b),
298	298	11.085(k)(1) [11.085(k)(2)(F)], 11.134(b)(3)(D), 11.147, 11.1471,
299	299	11.1491, 11.150, 11.152, 16.058, 16.059, or 18.004.
300	300	SECTION 16. Section 11.026, Water Code, is amended to read
301	301	as follows:
302	302	Sec. 11.026. PERFECTION OF AN APPROPRIATION. No right to
303	303	appropriate water is perfected unless the water has been
304	304	beneficially used for a purpose stated in the original declaration
305	305	of intention to appropriate water or stated in a permit issued by
306	306	the board [commission] or one of its predecessors.
307	307	SECTION 17. Sections 11.031(a), (b), (c), (d), (e), and
308	308	(g), Water Code, are amended to read as follows:
309	309	(a) Not later than March 1 of each year, each person who has
310	310	a water right issued by the board [commission] or who impounded,
311	311	diverted, or otherwise used state water during the preceding
312	312	calendar year shall submit a written report to the board
313	313	[commission] on a form prescribed by the board [commission]. The
314	314	report shall contain all information required by the board
315	315	[commission] to aid in administering the water law and in making
316	316	inventory of the state's water resources. However, with the
317	317	exception of those persons who hold water rights, no report is
318	318	required of persons who take water solely for domestic or livestock
319	319	purposes.
320	320	(b) A person who fails to file an annual report with the
321	321	board [commission] as required by Subsection (a) or fails to timely
322	322	comply with a request by the board [commission] to make information
323	323	available under Subsection (d) is liable for a penalty for each day
324	324	the person fails to file the statement or comply with the request
325	325	after the applicable deadline in an amount not to exceed:
326	326	(1) $100 per day if the person is the holder of a water
327	327	right authorizing the appropriation of 5,000 acre-feet or less per
328	328	year; or
329	329	(2) $500 per day if the person is the holder of a water
330	330	right authorizing the appropriation of more than 5,000 acre-feet
331	331	per year.
332	332	(c) The board [commission] may waive the requirements of
333	333	Subsection (a) [of this section] for a person who has a water right
334	334	or uses state water in an area of the state where watermaster
335	335	operations are established.
336	336	(d) Each person who has a water right issued by the board
337	337	[commission] or who impounds, diverts, or otherwise uses state
338	338	water shall maintain water use information required under
339	339	Subsection (a) on a monthly basis during the months a water rights
340	340	holder uses permitted water. The person shall make the information
341	341	available to the board [commission] on the board's [commission's]
342	342	request. The executive administrator [director] shall establish a
343	343	reasonable deadline by which a person must make available
344	344	information requested by the board [commission] under this
345	345	subsection.
346	346	(e) Except as provided by Subsection (a), the board
347	347	[commission] may request information maintained under Subsection
348	348	(d) only during a drought or other emergency shortage of water or in
349	349	response to a complaint.
350	350	(g) The board [commission] shall establish a process by
351	351	which a report required under Subsection (a) may be submitted
352	352	electronically through the Internet.
353	353	SECTION 18. Section 11.034, Water Code, is amended to read
354	354	as follows:
355	355	Sec. 11.034. RESERVOIR SITE: LAND AND RIGHTS-OF-WAY. An
356	356	appropriator who is authorized to construct a dam or reservoir is
357	357	granted the right-of-way, not to exceed 100 feet wide, and the
358	358	necessary area for the site, over any public school land,
359	359	university land, or asylum land of this state and the use of the
360	360	rock, gravel, and timber on the site and right-of-way for
361	361	construction purposes, after paying compensation as determined by
362	362	the board [commission]. An appropriator may acquire the reservoir
363	363	site and rights-of-way over private land by contract.
364	364	SECTION 19. Sections 11.035(c), (d), (e), (f), and (g),
365	365	Water Code, are amended to read as follows:
366	366	(c) If the party exercising the power granted by this
367	367	section is not a corporation, district, city, or town, the party
368	368	[he] shall apply to the board [commission] for the condemnation.
369	369	(d) The executive administrator [director] shall have the
370	370	proposed condemnation investigated. After the investigation, the
371	371	board [commission] may give notice to the party owning the land
372	372	proposed to be condemned and hold a hearing on the proposed
373	373	condemnation.
374	374	(e) If after a hearing the board [commission] determines
375	375	that the condemnation is necessary, the executive administrator
376	376	[director] may institute condemnation proceedings in the name of
377	377	the State of Texas for the use and benefit of the party who applied
378	378	for the condemnation and all others similarly situated.
379	379	(f) The parties at whose instance a condemnation suit is
380	380	instituted shall pay the costs of the suit and condemnation in
381	381	proportion to the benefits received by each party as fixed by the
382	382	board [commission]. Before using any of the condemned rights or
383	383	property, a party receiving the rights or property shall pay the
384	384	amount of costs fixed by the board [commission].
385	385	(g) If, after the costs of the condemnation proceedings have
386	386	been paid, a party seeks to take the benefits of the condemnation
387	387	proceedings, the party [he] shall apply to the board [commission]
388	388	for the benefits. The board [commission] may grant the application
389	389	and fix the fees and charges to be paid by the applicant.
390	390	SECTION 20. Section 11.036(d), Water Code, is amended to
391	391	read as follows:
392	392	(d) If any person uses the stored or conserved water without
393	393	first entering into a contract with the party that conserved or
394	394	stored it, the user shall pay for the use at a rate determined by the
395	395	board [commission] to be just and reasonable, subject to court
396	396	review as in other cases.
397	397	SECTION 21. Section 11.041, Water Code, is amended to read
398	398	as follows:
399	399	Sec. 11.041. DENIAL OF WATER: COMPLAINT. (a) Any person
400	400	entitled to receive or use water from any canal, ditch, flume,
401	401	lateral, dam, reservoir, or lake or from any conserved or stored
402	402	supply may present to the board [commission] a written petition
403	403	showing:
404	404	(1) that the person [he] is entitled to receive or use
405	405	the water;
406	406	(2) that the person [he] is willing and able to pay a
407	407	just and reasonable price for the water;
408	408	(3) that the party owning or controlling the water
409	409	supply has water not contracted to others and available for the
410	410	petitioner's use; and
411	411	(4) that the party owning or controlling the water
412	412	supply fails or refuses to supply the available water to the
413	413	petitioner, or that the price or rental demanded for the available
414	414	water is not reasonable and just or is discriminatory.
415	415	(b) If the petition is accompanied by a deposit of $25, the
416	416	executive administrator [director] shall have a preliminary
417	417	investigation of the complaint made and determine whether or not
418	418	there are probable grounds for the complaint.
419	419	(c) If, after preliminary investigation, the executive
420	420	administrator [director] determines that probable grounds exist
421	421	for the complaint, the board [commission] shall enter an order
422	422	setting a time and place for a hearing on the petition.
423	423	(d) The board [commission] may require the complainant to
424	424	make an additional deposit or execute a bond satisfactory to the
425	425	board [commission] in an amount fixed by the board [commission]
426	426	conditioned on the payment of all costs of the proceeding.
427	427	(e) At least 20 days before the date set for the hearing, the
428	428	board [commission] shall transmit by registered mail a certified
429	429	copy of the petition and a certified copy of the hearing order to
430	430	the person against whom the complaint is made.
431	431	(f) The board [commission] shall hold a hearing on the
432	432	complaint at the time and place stated in the order. It may hear
433	433	evidence orally or by affidavit in support of or against the
434	434	complaint, and it may hear arguments. The utility commission may
435	435	participate in the hearing if necessary to present evidence on the
436	436	price or rental demanded for the available water. On completion of
437	437	the hearing, the board [commission] shall render a written
438	438	decision.
439	439	(g) If, after the preliminary investigation, the executive
440	440	administrator [director] determines that no probable grounds exist
441	441	for the complaint, the executive administrator [director] shall
442	442	dismiss the complaint. The board [commission] may either return
443	443	the deposit or pay it into the State Treasury.
444	444	SECTION 22. Section 11.042, Water Code, is amended by
445	445	amending Subsections (a), (a-1), (b), and (c) and adding Subsection
446	446	(e) to read as follows:
447	447	(a) Under rules prescribed by the board [commission], a
448	448	person, association of persons, corporation, water control and
449	449	improvement district, water improvement district, or irrigation
450	450	district supplying stored or conserved water under contract as
451	451	provided in this chapter may use the bank and bed of any flowing
452	452	natural stream in the state to convey the water from the place of
453	453	storage to the place of use or to the diversion point of the
454	454	appropriator.
455	455	(a-1) With prior authorization granted under rules
456	456	prescribed by the board [commission], a person, association of
457	457	persons, corporation, water control and improvement district,
458	458	water improvement district, or irrigation district supplying water
459	459	imported from a source located wholly outside the boundaries of
460	460	this state, except water imported from a source located in the
461	461	United Mexican States, may use the bed and banks of any flowing
462	462	natural stream in the state to convey water for use in this state.
463	463	The authorization must:
464	464	(1) allow for the diversion of only the amount of water
465	465	put into a watercourse or stream, less carriage losses; and
466	466	(2) include special conditions adequate to prevent a
467	467	significant impact to the quality of water in this state.
468	468	(b) A person who wishes to discharge and then subsequently
469	469	divert and reuse the person's existing return flows derived from
470	470	privately owned groundwater must obtain prior authorization from
471	471	the board [commission] for the diversion and the reuse of these
472	472	return flows. The authorization may allow for the diversion and
473	473	reuse by the discharger of existing return flows, less carriage
474	474	losses, and shall be subject to special conditions if necessary to
475	475	protect an existing water right that was granted based on the use or
476	476	availability of these return flows. Special conditions may also be
477	477	provided to help maintain instream uses and freshwater inflows to
478	478	bays and estuaries. A person wishing to divert and reuse future
479	479	increases of return flows derived from privately owned groundwater
480	480	must obtain authorization to reuse increases in return flows before
481	481	the increase.
482	482	(c) Except as otherwise provided in Subsection (a) [of this
483	483	section], a person who wishes to convey and subsequently divert
484	484	water in a watercourse or stream must obtain the prior approval of
485	485	the board [commission] through a bed and banks authorization. The
486	486	authorization shall allow to be diverted only the amount of water
487	487	put into a watercourse or stream, less carriage losses and subject
488	488	to any special conditions that may address the impact of the
489	489	discharge, conveyance, and diversion on existing permits,
490	490	certified filings, or certificates of adjudication, instream uses,
491	491	and freshwater inflows to bays and estuaries. Water discharged
492	492	into a watercourse or stream under this chapter shall not cause a
493	493	degradation of water quality to the extent that the stream
494	494	segment's classification would be lowered. [Authorizations under
495	495	this section and water quality authorizations may be approved in a
496	496	consolidated permit proceeding.]
497	497	(e) The board may consult with the commission in determining
498	498	special conditions for an authorization issued under this section.
499	499	SECTION 23. Section 11.046(b), Water Code, is amended to
500	500	read as follows:
501	501	(b) In granting an application for a water right, the board
502	502	[commission] may include conditions in the water right providing
503	503	for the return of surplus water, in a specific amount or percentage
504	504	of water diverted, and the return point on a watercourse or stream
505	505	as necessary to protect senior downstream permits, certified
506	506	filings, or certificates of adjudication or to provide flows for
507	507	instream uses or bays and estuaries.
508	508	SECTION 24. Section 11.053, Water Code, is amended to read
509	509	as follows:
510	510	Sec. 11.053. EMERGENCY ORDER CONCERNING WATER RIGHTS. (a)
511	511	During a period of drought or other emergency shortage of water, as
512	512	defined by board [commission] rule, the executive administrator
513	513	[director] by order may, in accordance with the priority of water
514	514	rights established by Section 11.027:
515	515	(1) temporarily suspend the right of any person who
516	516	holds a water right to use the water; and
517	517	(2) temporarily adjust the diversions of water by
518	518	water rights holders.
519	519	(b) The executive administrator [director] in ordering a
520	520	suspension or adjustment under this section shall ensure that an
521	521	action taken:
522	522	(1) maximizes the beneficial use of water;
523	523	(2) minimizes the impact on water rights holders;
524	524	(3) prevents the waste of water;
525	525	(4) takes into consideration the efforts of the
526	526	affected water rights holders to develop and implement the water
527	527	conservation plans and drought contingency plans required by this
528	528	chapter;
529	529	(5) to the greatest extent practicable, conforms to
530	530	the order of preferences established by Section 11.024; and
531	531	(6) does not require the release of water that, at the
532	532	time the order is issued, is lawfully stored in a reservoir under
533	533	water rights associated with that reservoir.
534	534	(c) The board [commission] shall adopt rules to implement
535	535	this section, including rules:
536	536	(1) defining a drought or other emergency shortage of
537	537	water for purposes of this section; and
538	538	(2) specifying the:
539	539	(A) conditions under which the executive
540	540	administrator [director] may issue an order under this section;
541	541	(B) terms of an order issued under this section,
542	542	including the maximum duration of a temporary suspension or
543	543	adjustment under this section; and
544	544	(C) procedures for notice of, an opportunity for
545	545	a hearing on, and the appeal to the board [commission] of an order
546	546	issued under this section.
547	547	SECTION 25. Section 11.084, Water Code, is amended to read
548	548	as follows:
549	549	Sec. 11.084. SALE OF PERMANENT WATER RIGHT WITHOUT A
550	550	PERMIT. No person may sell or offer to sell a permanent water right
551	551	unless the person [he] has perfected a right to appropriate state
552	552	water by a certified filing, or unless the person [he] has obtained
553	553	a permit from the board [commission], authorizing the use of the
554	554	water for the purposes for which the permanent water right is
555	555	conveyed.
556	556	SECTION 26. Section 11.0841(c), Water Code, is amended to
557	557	read as follows:
558	558	(c) For purposes of this section, the Parks and Wildlife
559	559	Department has:
560	560	(1) the rights of a holder of a water right that is
561	561	held in the Texas Water Trust, including the right to file suit in a
562	562	civil court to prevent the unlawful use of such a right;
563	563	(2) the right to act in the same manner that a holder
564	564	of a water right may act to protect the holder's rights in seeking
565	565	to prevent any person from appropriating water in violation of a
566	566	set-aside established by the board [commission] under Section
567	567	11.1471 to meet instream flow needs or freshwater inflow needs; and
568	568	(3) the right to file suit in a civil court to prevent
569	569	the unlawful use of a set-aside established under Section 11.1471.
570	570	SECTION 27. Sections 11.0842(a), (b), (c), (d), (e), (f),
571	571	(g), (h), (i), (j), (k), (l), (m), (n), and (p), Water Code, are
572	572	amended to read as follows:
573	573	(a) If a person violates this chapter, a rule or order
574	574	adopted under this chapter [or Section 16.236], or a permit,
575	575	certified filing, or certificate of adjudication issued under this
576	576	chapter, the board [commission] may assess an administrative
577	577	penalty against that person as provided by this section. The board
578	578	[commission] may assess an administrative penalty for a violation
579	579	relating to a water division or a river basin or segment of a river
580	580	basin regardless of whether a watermaster has been appointed for
581	581	the water division or river basin or segment of the river basin.
582	582	(b) The penalty may be in an amount not to exceed $5,000 for
583	583	each day the person is in violation of this chapter, the rule or
584	584	order adopted under this chapter, or the permit, certified filing,
585	585	or certificate of adjudication issued under this chapter. [The
586	586	penalty may be in an amount not to exceed $1,000 for each day the
587	587	person is in violation of the rule or order adopted under Section
588	588	16.236 of this code.] Each day a violation continues may be
589	589	considered a separate violation for purposes of penalty assessment.
590	590	(c) In determining the amount of the penalty, the board
591	591	[commission] shall consider:
592	592	(1) the nature, circumstances, extent, duration, and
593	593	gravity of the prohibited acts, with special emphasis on the
594	594	impairment of an existing permit, certified filing, or certificate
595	595	of adjudication or the hazard or potential hazard created to the
596	596	health, safety, or welfare of the public;
597	597	(2) the impact of the violation on the instream uses,
598	598	water quality, fish and wildlife habitat, or beneficial freshwater
599	599	inflows to bays and estuaries;
600	600	(3) with respect to the alleged violator:
601	601	(A) the history and extent of previous
602	602	violations;
603	603	(B) the degree of culpability, including whether
604	604	the violation was attributable to mechanical or electrical failures
605	605	and whether the violation could have been reasonably anticipated
606	606	and avoided;
607	607	(C) demonstrated good faith, including actions
608	608	taken by the alleged violator to rectify the cause of the violation
609	609	and to compensate affected persons;
610	610	(D) any economic benefit gained through the
611	611	violation; and
612	612	(E) the amount necessary to deter future
613	613	violations; and
614	614	(4) any other matters that justice may require.
615	615	(d) If, after examination of a possible violation and the
616	616	facts surrounding that possible violation, the executive
617	617	administrator [director] concludes that a violation has occurred,
618	618	the executive administrator [director] shall issue a preliminary
619	619	report stating the facts on which that conclusion was based,
620	620	recommending that an administrative penalty under this section be
621	621	imposed on the person charged, and recommending the amount of the
622	622	penalty. The executive administrator [director] shall base the
623	623	recommended amount of the proposed penalty on the factors provided
624	624	by Subsection (c) [of this section] and shall analyze each factor
625	625	for the benefit of the board [commission].
626	626	(e) No later than the 10th day after the date on which the
627	627	report is issued, the executive administrator [director] shall give
628	628	written notice of the report to the person charged with the
629	629	violation. The notice shall include a brief summary of the charges,
630	630	a statement of the amount of the penalty recommended, and a
631	631	statement of the right of the person charged to a hearing on the
632	632	occurrence of the violation, the amount of the penalty, or both the
633	633	occurrence of the violation and the amount of the penalty.
634	634	(f) No later than the 20th day after the date on which notice
635	635	is received, the person charged may either give to the board
636	636	[commission] written consent to the executive administrator's
637	637	[director's] report, including the recommended penalty, or make a
638	638	written request for a hearing.
639	639	(g) If the person charged with the violation consents to the
640	640	penalty recommended by the executive administrator [director] or
641	641	fails to timely respond to the notice, the board [commission] by
642	642	order shall either assess the penalty or order a hearing to be held
643	643	on the findings and recommendations in the executive
644	644	administrator's [director's] report. If the board [commission]
645	645	assesses the penalty recommended by the report, the board
646	646	[commission] shall give written notice of its decision to the
647	647	person charged.
648	648	(h) If the person charged requests or the board [commission]
649	649	orders a hearing, the board [commission] shall call a hearing and
650	650	give notice of the hearing. As a result of the hearing, the board
651	651	[commission] by order either may find that a violation has occurred
652	652	and may assess a penalty, may find that a violation has occurred but
653	653	that no penalty should be assessed, or may find that no violation
654	654	has occurred. All proceedings under this subsection are subject to
655	655	Chapter 2001, Government Code. In making any penalty decision, the
656	656	board [commission] shall analyze each of the factors provided by
657	657	Subsection (c) [of this section].
658	658	(i) The board [commission] shall give notice of its decision
659	659	to the person charged, and if the board [commission] finds that a
660	660	violation has occurred and assesses an administrative penalty, the
661	661	board [commission] shall give written notice to the person charged
662	662	of its findings, of the amount of the penalty, and of the person's
663	663	right to judicial review of the board's [commission's] order. If
664	664	the board [commission] is required to give notice of a penalty under
665	665	this subsection or Subsection (g) [of this section], the board
666	666	[commission] shall file notice of its decision in the Texas
667	667	Register not later than the 10th day after the date on which the
668	668	decision is adopted.
669	669	(j) Within the 30-day period immediately following the day
670	670	on which the board's [commission's] order is final, as provided by
671	671	Subchapter F, Chapter 2001, Government Code, the person charged
672	672	with the penalty shall:
673	673	(1) pay the penalty in full;
674	674	(2) pay the amount of the penalty and file a petition
675	675	for judicial review contesting the occurrence of the violation, the
676	676	amount of the penalty, or both the occurrence of the violation and
677	677	the amount of the penalty; or
678	678	(3) without paying the amount of the penalty, file a
679	679	petition for judicial review contesting the occurrence of the
680	680	violation, the amount of the penalty, or both the occurrence of the
681	681	violation and the amount of the penalty.
682	682	(k) Within the 30-day period, a person who acts under
683	683	Subsection (j)(3) [of this section] may:
684	684	(1) stay enforcement of the penalty by:
685	685	(A) paying the amount of the penalty to the court
686	686	for placement in an escrow account; or
687	687	(B) giving to the court a supersedeas bond that
688	688	is approved by the court for the amount of the penalty and that is
689	689	effective until all judicial review of the board's [commission's]
690	690	order is final; or
691	691	(2) request the court to stay enforcement of the
692	692	penalty by:
693	693	(A) filing with the court a sworn affidavit of
694	694	the person stating that the person is financially unable to pay the
695	695	amount of the penalty and is financially unable to give the
696	696	supersedeas bond; and
697	697	(B) giving a copy of the affidavit to the board
698	698	[commission] by certified mail.
699	699	(l) If the board [commission] receives a copy of an
700	700	affidavit under Subsection (k)(2) [of this section], it may file
701	701	with the court within five days after the date the copy is received
702	702	a contest to the affidavit. The court shall hold a hearing on the
703	703	facts alleged in the affidavit as soon as practicable and shall stay
704	704	the enforcement of the penalty on finding that the alleged facts are
705	705	true. The person who files an affidavit has the burden of proving
706	706	that the person is financially unable to pay the amount of the
707	707	penalty and to give a supersedeas bond.
708	708	(m) If the person does not pay the amount of the penalty and
709	709	the enforcement of the penalty is not stayed, the board
710	710	[commission] may refer the matter to the attorney general for
711	711	collection of the amount of the penalty.
712	712	(n) Judicial review of the order or decision of the board
713	713	[commission] assessing the penalty shall be under the substantial
714	714	evidence rule and shall be instituted by filing a petition with a
715	715	district court in Travis County, as provided by Subchapter G,
716	716	Chapter 2001, Government Code.
717	717	(p) Notwithstanding any other provision to the contrary,
718	718	the board [commission] may compromise, modify, or remit, with or
719	719	without condition, any penalty imposed under this section.
720	720	SECTION 28. Sections 11.0843(a) and (b), Water Code, are
721	721	amended to read as follows:
722	722	(a) Upon witnessing a violation of this chapter or a rule or
723	723	order or a water right issued under this chapter, the executive
724	724	administrator [director] or a person designated by the executive
725	725	administrator [director], including a watermaster or the
726	726	watermaster's deputy, may issue the alleged violator a field
727	727	citation alleging that a violation has occurred and providing the
728	728	alleged violator the option of either:
729	729	(1) without admitting to or denying the alleged
730	730	violation, paying an administrative penalty in accordance with the
731	731	predetermined penalty amount established under Subsection (b) and
732	732	taking remedial action as provided in the citation; or
733	733	(2) requesting a hearing on the alleged violation in
734	734	accordance with Section 11.0842.
735	735	(b) By rule the board [commission] shall establish penalty
736	736	amounts corresponding to types of violations of this chapter or
737	737	rules or orders adopted or water rights issued under this chapter.
738	738	SECTION 29. Subchapter C, Chapter 11, Water Code, is
739	739	amended by adding Section 11.0844 to read as follows:
740	740	Sec. 11.0844. INJUNCTIVE RELIEF. (a) The executive
741	741	administrator may enforce a board rule adopted under this chapter
742	742	or a provision of a permit issued by the board under this chapter by
743	743	injunction or other appropriate remedy.
744	744	(b) If it appears that a violation or threat of violation of
745	745	this chapter or a rule adopted or an order or a permit issued under
746	746	this chapter has occurred or is about to occur, the executive
747	747	administrator may have a suit instituted in district court for
748	748	injunctive relief to restrain the violation or threat of violation.
749	749	(c) The suit may be brought in the county in which the
750	750	defendant resides or in the county in which the violation or threat
751	751	of violation occurs.
752	752	(d) In a suit brought under this section to enjoin a
753	753	violation or threat of violation described by Subsection (b), the
754	754	court may grant the board, without bond or other undertaking, any
755	755	prohibitory or mandatory injunction the facts may warrant,
756	756	including a temporary restraining order and, after notice and
757	757	hearing, a temporary injunction or permanent injunction.
758	758	(e) On request of the executive administrator, the attorney
759	759	general or the prosecuting attorney in a county in which the
760	760	violation occurs shall initiate a suit in the name of the state for
761	761	injunctive relief. The suit may be brought independently of or in
762	762	conjunction with a suit under Section 11.082.
763	763	SECTION 30. Sections 11.085(a), (d), (e), (i), (j), (k),
764	764	(l), and (m), Water Code, are amended to read as follows:
765	765	(a) No person may take or divert any state water from a river
766	766	basin in this state and transfer such water to any other river basin
767	767	without first applying for and receiving a water right or an
768	768	amendment to a permit, certified filing, or certificate of
769	769	adjudication from the board [commission] authorizing the transfer.
770	770	(d) Prior to taking action on an application for an
771	771	interbasin transfer, the board [commission] shall conduct at least
772	772	one public meeting to receive comments in both the basin of origin
773	773	of the water proposed for transfer and the basin receiving water
774	774	from the proposed transfer. Notice shall be provided pursuant to
775	775	Subsection (g) [of this section]. Any person may present relevant
776	776	information and data at the meeting on the criteria which the board
777	777	[commission] is to consider related to the interbasin transfer.
778	778	(e) In addition to the public meetings required by
779	779	Subsection (d), if the application is contested in a manner
780	780	requiring an evidentiary hearing under the rules of the board
781	781	[commission], the board [commission] shall give notice and hold an
782	782	evidentiary hearing, in accordance with board [commission] rules
783	783	and applicable state law. An evidentiary hearing on an application
784	784	to transfer water authorized under an existing water right is
785	785	limited to considering issues related to the requirements of this
786	786	section.
787	787	(i) The applicant shall pay the cost of notice required to
788	788	be provided under this section. The board [commission] by rule may
789	789	establish procedures for payment of those costs.
790	790	(j) In addition to other requirements of this code relating
791	791	to the review of and action on an application for a new water right
792	792	or amended permit, certified filing, or certificate of
793	793	adjudication, the board [commission] shall:
794	794	(1) request review and comment on an application for
795	795	an interbasin transfer from each county judge of a county located in
796	796	whole or in part in the basin of origin. A county judge should make
797	797	comment only after seeking advice from the county commissioners
798	798	court; and
799	799	(2) give consideration to the comments of each county
800	800	judge of a county located in whole or in part in the basin of origin
801	801	prior to taking action on an application for an interbasin
802	802	transfer.
803	803	(k) In addition to other requirements of this code relating
804	804	to the review of and action on an application for a new water right
805	805	or amended permit, certified filing, or certificate of
806	806	adjudication, the board [commission] shall weigh the effects of the
807	807	proposed transfer by considering:
808	808	(1) [the need for the water in the basin of origin and
809	809	in the proposed receiving basin based on the period for which the
810	810	water supply is requested, but not to exceed 50 years;
811	811	[(2) factors identified in the applicable approved
812	812	regional water plans which address the following:
813	813	[(A) the availability of feasible and
814	814	practicable alternative supplies in the receiving basin to the
815	815	water proposed for transfer;
816	816	[(B) the amount and purposes of use in the
817	817	receiving basin for which water is needed;
818	818	[(C) proposed methods and efforts by the
819	819	receiving basin to avoid waste and implement water conservation and
820	820	drought contingency measures;
821	821	[(D) proposed methods and efforts by the
822	822	receiving basin to put the water proposed for transfer to
823	823	beneficial use;
824	824	[(E) the projected economic impact that is
825	825	reasonably expected to occur in each basin as a result of the
826	826	transfer; and
827	827	[(F)] the projected impacts of the proposed
828	828	transfer that are reasonably expected to occur on [existing water
829	829	rights,] instream uses, water quality, aquatic and riparian
830	830	habitat, and bays and estuaries that must be assessed under
831	831	Sections 11.147, 11.150, and 11.152 [of this code] in each basin.
832	832	If the water sought to be transferred is currently authorized to be
833	833	used under an existing permit, certified filing, or certificate of
834	834	adjudication, such impacts shall only be considered in relation to
835	835	that portion of the permit, certified filing, or certificate of
836	836	adjudication proposed for transfer and shall be based on historical
837	837	uses of the permit, certified filing, or certificate of
838	838	adjudication for which amendment is sought;
839	839	[(3) proposed mitigation or compensation, if any, to
840	840	the basin of origin by the applicant;
841	841	[(4) the continued need to use the water for the
842	842	purposes authorized under the existing permit, certified filing, or
843	843	certificate of adjudication, if an amendment to an existing water
844	844	right is sought;] and
845	845	(2) [(5)] the information required to be submitted by
846	846	the applicant.
847	847	(l) The board [commission] may grant, in whole or in part,
848	848	an application for an interbasin transfer only to the extent that:
849	849	(1) the detriments to the basin of origin during the
850	850	proposed transfer period are less than the benefits to the
851	851	receiving basin during the proposed transfer period, as determined
852	852	by the board [commission] based on consideration of the factors
853	853	described by Subsection (k); and
854	854	(2) the applicant for the interbasin transfer has
855	855	prepared a drought contingency plan and has developed and
856	856	implemented a water conservation plan that will result in the
857	857	highest practicable levels of water conservation and efficiency
858	858	achievable within the jurisdiction of the applicant.
859	859	(m) The board [commission] may grant new or amended water
860	860	rights under this section with or without specific terms or periods
861	861	of use and with specific conditions under which a transfer of water
862	862	may occur.
863	863	SECTION 31. Sections 11.087(b) and (c), Water Code, are
864	864	amended to read as follows:
865	865	(b) The board [commission] may make and enforce rules and
866	866	orders to implement the provisions of this section, including rules
867	867	and orders designed to:
868	868	(1) establish an orderly system for water releases and
869	869	diversions in order to protect vested rights and to avoid the loss
870	870	of released water;
871	871	(2) prescribe the time that releases of water may
872	872	begin and end;
873	873	(3) determine the proportionate quantities of the
874	874	released water in transit and the water that would have been flowing
875	875	in the stream without the addition of the released water;
876	876	(4) require each owner or operator of a dam or
877	877	reservoir on the stream between the point of release and the point
878	878	of destination to allow free passage of the released water in
879	879	transit; and
880	880	(5) establish other requirements the board
881	881	[commission] considers necessary to effectuate the purposes of this
882	882	section.
883	883	(c) Orders made by the board [commission] to effectuate its
884	884	rules under this section shall be mailed by certified mail to each
885	885	diverter of water and to each reservoir owner on the stream between
886	886	the point of release and the point of destination of the released
887	887	water as shown by the records of the board [commission].
888	888	SECTION 32. Section 11.0871, Water Code, is amended to read
889	889	as follows:
890	890	Sec. 11.0871. TEMPORARY DIVERSION OF WATER ON INTERNATIONAL
891	891	STREAM. (a) The board [commission] may authorize, under
892	892	conditions stated in an order, a watermaster to provide for the
893	893	temporary diversion and use by holders of water rights of storm
894	894	water or floodwater that spills from dams and reservoirs on an
895	895	international stream and otherwise would flow into the Gulf of
896	896	Mexico without opportunity for beneficial use.
897	897	(b) In an order made by the board [commission] under this
898	898	section, the board [commission] may not discriminate between
899	899	holders of water rights from an international stream except to the
900	900	extent necessary to protect the holders of water rights from the
901	901	same source of supply.
902	902	(c) The board [commission] shall give notice by mail to
903	903	holders of water rights from an international stream and shall hold
904	904	an evidentiary hearing before entry of an order under this section.
905	905	SECTION 33. Section 11.093, Water Code, is amended to read
906	906	as follows:
907	907	Sec. 11.093. ABATEMENT OF WASTE AS PUBLIC NUISANCE. (a) A
908	908	person who permits an unreasonable loss of water through faulty
909	909	design or negligent operation of any waterworks using water for a
910	910	purpose named in this chapter commits waste, and the board
911	911	[commission] may declare the works causing the waste to be a public
912	912	nuisance. The board [commission] may take the necessary action to
913	913	abate the nuisance. Also, any person who may be injured by the
914	914	waste may sue in the district court having jurisdiction over the
915	915	works causing the waste to have the operation of the works abated as
916	916	a public nuisance.
917	917	(b) In case of a wasteful use of water defined by Section
918	918	11.092 [of this code], the board [commission] shall declare the use
919	919	to be a public nuisance and shall act to abate the nuisance by
920	920	directing the person supplying the water to close the water gates of
921	921	the person wasting the water and to keep them closed until the board
922	922	[commission] determines that the unlawful use of water is
923	923	corrected.
924	924	SECTION 34. Section 11.097, Water Code, is amended to read
925	925	as follows:
926	926	Sec. 11.097. REMOVAL OF OBSTRUCTIONS FROM NAVIGABLE
927	927	STREAMS. (a) On its own motion or on written request from a
928	928	commissioners court, the board [commission] shall investigate a
929	929	reported natural obstruction in a navigable stream caused by the
930	930	accumulation of limbs, logs, leaves, other tree parts, or other
931	931	debris. If making the investigation on request of a commissioners
932	932	court, the board [commission] must make its investigation not later
933	933	than the 30th day after the date on which it receives the written
934	934	request from the commissioners court.
935	935	(b) On completion of the investigation, if the board
936	936	[commission] determines that the obstruction is creating a hazard
937	937	or is having other detrimental effect on the navigable stream, the
938	938	board [commission] shall initiate action to remove the obstruction.
939	939	(c) In removing an obstruction, the board [commission] may
940	940	solicit the assistance of federal and state agencies including the
941	941	Corps of Engineers, Texas National Guard, the Parks and Wildlife
942	942	Department, and districts and authorities created under Article
943	943	III, Sections 52(b)(1) and (2), or Article XVI, Section 59, of the
944	944	Texas Constitution. Also, the board [commission] may enter into
945	945	contracts for services required to remove an obstruction. However,
946	946	no river authority may require the removal, relocation, or
947	947	reconfiguration of a floating structure which was in place before
948	948	September 1, 1987, [the effective date of this Act] and the
949	949	effective date of any ordinance, rule, resolution, or other act of
950	950	the river authority mandating such action unless the board
951	951	[commission] determines the structure is an obstruction to
952	952	navigation.
953	953	SECTION 35. Section 11.121, Water Code, is amended to read
954	954	as follows:
955	955	Sec. 11.121. PERMIT REQUIRED. Except as provided in
956	956	Sections 11.1405, 11.142, 11.1421, 11.1422, and 18.003, no person
957	957	may appropriate any state water or begin construction of any work
958	958	designed for the storage, taking, or diversion of water without
959	959	first obtaining a permit from the board [commission] to make the
960	960	appropriation.
961	961	SECTION 36. Sections 11.122(a) and (c), Water Code, are
962	962	amended to read as follows:
963	963	(a) All holders of permits, certified filings, and
964	964	certificates of adjudication issued under former Section 11.323 [of
965	965	this code] shall obtain from the board [commission] authority to
966	966	change the place of use, purpose of use, point of diversion, rate of
967	967	diversion, acreage to be irrigated, or otherwise alter a water
968	968	right. Without obtaining an amendment, the holder of a permit,
969	969	certified filing, or certificate of adjudication that includes
970	970	industrial or irrigation use may use or supply water for an
971	971	agricultural use that was classified as industrial or irrigation
972	972	before September 1, 2001.
973	973	(c) The board [commission] shall adopt rules to effectuate
974	974	the provisions of this section.
975	975	SECTION 37. Section 11.123, Water Code, is amended to read
976	976	as follows:
977	977	Sec. 11.123. PERMIT PREFERENCES. The board [commission]
978	978	shall give preference to applications in the order declared in
979	979	Section 11.024 [of this code] and to applications which will
980	980	effectuate the maximum utilization of water and are calculated to
981	981	prevent the escape of water without contribution to a beneficial
982	982	public service.
983	983	SECTION 38. Section 11.126, Water Code, is amended to read
984	984	as follows:
985	985	Sec. 11.126. BOARD [COMMISSION] REQUIREMENTS. (a) If the
986	986	proposed taking or diversion of water for irrigation exceeds nine
987	987	cubic feet per second, the executive administrator [director] may
988	988	require additional information as prescribed by this section.
989	989	(b) The executive administrator [director] may require a
990	990	continuous longitudinal profile, cross sections of the proposed
991	991	channel, and the detail plans of any proposed structure, on any
992	992	scales and with any definition the executive administrator
993	993	[director] considers necessary or expedient.
994	994	(c) If the application proposes construction of a dam
995	995	greater than six feet in height either for diversion or storage, the
996	996	executive administrator [director] may also require filing a copy
997	997	of all plans and specifications and a copy of the engineer's field
998	998	notes of any survey of the lake or reservoir. No work on the project
999	999	shall proceed until approval of the plans is obtained from the
1000	1000	executive administrator [director].
1001	1001	(d) If the applicant is a corporation, the board
1002	1002	[commission] may require filing a certified copy of its articles of
1003	1003	incorporation, a statement of the names and addresses of its
1004	1004	directors and officers, and a statement of the amount of its
1005	1005	authorized capital stock and its paid-up capital stock.
1006	1006	(e) If the applicant is not a corporation, the board
1007	1007	[commission] may require filing a sworn statement showing the name
1008	1008	and address of each person interested in the appropriation, the
1009	1009	extent of the person's [his] interest, and the person's [his]
1010	1010	financial condition.
1011	1011	SECTION 39. Section 11.127, Water Code, is amended to read
1012	1012	as follows:
1013	1013	Sec. 11.127. ADDITIONAL REQUIREMENTS: DRAINAGE PLANS. If
1014	1014	the board [commission] believes that the efficient operation of any
1015	1015	existing or proposed irrigation system may be adversely affected by
1016	1016	lack of adequate drainage facilities incident to the work proposed
1017	1017	to be done by an applicant, the board [commission] may require the
1018	1018	applicant to submit to the executive administrator [director] for
1019	1019	approval plans for drainage adequate to guard against any injury
1020	1020	which the proposed work may entail.
1021	1021	SECTION 40. Section 11.1271, Water Code, is amended to read
1022	1022	as follows:
1023	1023	Sec. 11.1271. ADDITIONAL REQUIREMENTS: WATER CONSERVATION
1024	1024	PLANS. (a) The board [commission] shall require from an applicant
1025	1025	for a new or amended water right the formulation and submission of a
1026	1026	water conservation plan and the adoption of reasonable water
1027	1027	conservation measures, as defined by Subdivision (8)(B), Section
1028	1028	11.002[, of this code].
1029	1029	(b) The board [commission] shall require the holder of an
1030	1030	existing permit, certified filing, or certificate of adjudication
1031	1031	for the appropriation of surface water in the amount of 1,000
1032	1032	acre-feet a year or more for municipal, industrial, and other uses,
1033	1033	and 10,000 acre-feet a year or more for irrigation uses, to develop,
1034	1034	submit, and implement a water conservation plan, consistent with
1035	1035	the appropriate approved regional water plan, that adopts
1036	1036	reasonable water conservation measures as defined by Subdivision
1037	1037	(8)(B), Section 11.002[, of this code]. The requirement for a water
1038	1038	conservation plan under this section shall not result in the need
1039	1039	for an amendment to an existing permit, certified filing, or
1040	1040	certificate of adjudication.
1041	1041	(c) All [Beginning May 1, 2005, all] water conservation
1042	1042	plans required under this section must include specific, quantified
1043	1043	5-year and 10-year targets for water savings. The entity preparing
1044	1044	the plan shall establish the targets. Targets must include goals
1045	1045	for water loss programs and goals for municipal use in gallons per
1046	1046	capita per day.
1047	1047	(d) The [commission and the] board [jointly] shall identify
1048	1048	quantified target goals for water conservation that water suppliers
1049	1049	and other entities may use as guidelines in preparing water
1050	1050	conservation plans. Goals established under this subsection are
1051	1051	not enforceable requirements.
1052	1052	(e) The [commission and] board [jointly] shall develop
1053	1053	model water conservation programs for different types of water
1054	1054	suppliers that suggest best management practices for achieving the
1055	1055	highest practicable levels of water conservation and efficiency
1056	1056	achievable for each specific type of water supplier.
1057	1057	(f) The board [commission] shall adopt rules:
1058	1058	(1) establishing criteria and deadlines for
1059	1059	submission of water conservation plans, including any required
1060	1060	amendments, and for submission of implementation reports; and
1061	1061	(2) requiring the methodology and guidance for
1062	1062	calculating water use and conservation developed under Section
1063	1063	16.403 to be used in the water conservation plans required by this
1064	1064	section.
1065	1065	(g) At a minimum, rules adopted under Subsection (f)(2) must
1066	1066	require an entity to report the most detailed level of municipal
1067	1067	water use data currently available to the entity. The board
1068	1068	[commission] may not adopt a rule that requires an entity to report
1069	1069	municipal water use data that is more detailed than the entity's
1070	1070	billing system is capable of producing.
1071	1071	SECTION 41. Section 11.1272, Water Code, is amended to read
1072	1072	as follows:
1073	1073	Sec. 11.1272. ADDITIONAL REQUIREMENT: DROUGHT CONTINGENCY
1074	1074	PLANS FOR CERTAIN APPLICANTS AND WATER RIGHT HOLDERS. (a) The
1075	1075	board [commission] shall by rule require wholesale and retail
1076	1076	public water suppliers and irrigation districts to develop drought
1077	1077	contingency plans consistent with the appropriate approved
1078	1078	regional water plan to be implemented during periods of water
1079	1079	shortages and drought.
1080	1080	(b) The wholesale and retail public water suppliers and
1081	1081	irrigation districts shall provide an opportunity for public input
1082	1082	during preparation of their drought contingency plans and before
1083	1083	submission of the plans to the board [commission].
1084	1084	(c) A [By May 1, 2005, a] drought contingency plan required
1085	1085	by board [commission] rule adopted under this section must include
1086	1086	specific, quantified targets for water use reductions to be
1087	1087	achieved during periods of water shortages and drought. The entity
1088	1088	preparing the plan shall establish the targets.
1089	1089	(d) The [commission and the] board by [joint] rule shall
1090	1090	identify quantified target goals for drought contingency plans that
1091	1091	wholesale and retail public water suppliers, irrigation districts,
1092	1092	and other entities may use as guidelines in preparing drought
1093	1093	contingency plans. Goals established under this subsection are not
1094	1094	enforceable requirements.
1095	1095	(e) The [commission and the] board [jointly] shall develop
1096	1096	model drought contingency programs for different types of water
1097	1097	suppliers that suggest best management practices for accomplishing
1098	1098	the highest practicable levels of water use reductions achievable
1099	1099	during periods of water shortages and drought for each specific
1100	1100	type of water supplier.
1101	1101	SECTION 42. Sections 11.1273(b), (c), (d), and (e), Water
1102	1102	Code, are amended to read as follows:
1103	1103	(b) Not later than the first anniversary of the date the
1104	1104	executive administrator [director] determines that an application
1105	1105	to amend a water management plan is administratively complete, the
1106	1106	executive administrator [director] shall complete a technical
1107	1107	review of the plan.
1108	1108	(c) If the executive administrator [director] submits a
1109	1109	written request for additional information to the applicant, the
1110	1110	applicant shall submit the requested information to the executive
1111	1111	administrator [director] not later than the 30th day after the date
1112	1112	the applicant receives the request or not later than the deadline
1113	1113	agreed to by the executive administrator [director] and the
1114	1114	applicant, if applicable. The review period required by Subsection
1115	1115	(b) for completing the technical review is tolled until the date the
1116	1116	executive administrator [director] receives the requested
1117	1117	information from the applicant.
1118	1118	(d) The board [commission] shall provide an opportunity for
1119	1119	public comment and a public hearing on the application, consistent
1120	1120	with the process for other water rights applications.
1121	1121	(e) If the board [commission] receives a request for a
1122	1122	hearing before the period for submitting public comments and
1123	1123	requesting a hearing expires, the board [commission] shall act on
1124	1124	the request for a hearing and, if the request is denied, act on the
1125	1125	application not later than the 60th day after the date the period
1126	1126	expires. If a request for a hearing is not submitted before the
1127	1127	period expires, the executive administrator [director] may act on
1128	1128	the application.
1129	1129	SECTION 43. Section 11.128, Water Code, is amended to read
1130	1130	as follows:
1131	1131	Sec. 11.128. PAYMENT OF FEE. The applicant shall pay the
1132	1132	filing fee prescribed by Section 12.111(e) [5.701] at the time the
1133	1133	application is filed. The board [commission] may not record, file,
1134	1134	or consider the application until the executive administrator
1135	1135	[director] certifies to the board [commission] that the fee is
1136	1136	paid.
1137	1137	SECTION 44. Section 11.129, Water Code, is amended to read
1138	1138	as follows:
1139	1139	Sec. 11.129. REVIEW OF APPLICATION; AMENDMENT. The board
1140	1140	[commission] shall determine whether the application, maps, and
1141	1141	other materials comply with the requirements of this chapter and
1142	1142	the rules of the board [commission]. The board [commission] may
1143	1143	require amendment of the application, maps, or other materials to
1144	1144	achieve necessary compliance.
1145	1145	SECTION 45. Section 11.130, Water Code, is amended to read
1146	1146	as follows:
1147	1147	Sec. 11.130. RECORDING APPLICATIONS. (a) The executive
1148	1148	administrator [director] shall have all applications for
1149	1149	appropriations recorded in a well-bound book kept for that purpose
1150	1150	in the board [commission] office.
1151	1151	(b) The executive administrator [director] shall have the
1152	1152	applications indexed alphabetically in the name of:
1153	1153	(1) the applicant;
1154	1154	(2) the stream or source from which the appropriation
1155	1155	is sought to be made; and
1156	1156	(3) the county in which the appropriation is sought to
1157	1157	be made.
1158	1158	SECTION 46. Section 11.131, Water Code, is amended to read
1159	1159	as follows:
1160	1160	Sec. 11.131. EXAMINATION AND DENIAL OF APPLICATION WITHOUT
1161	1161	HEARING. (a) The board [commission] shall make a preliminary
1162	1162	examination of the application, and if it appears that there is no
1163	1163	unappropriated water in the source of supply or that the proposed
1164	1164	appropriation should not be allowed for other reasons, the board
1165	1165	[commission] may deny the application.
1166	1166	(b) If the board [commission] denies the application under
1167	1167	this section and the applicant elects not to proceed further, the
1168	1168	board [commission] may order any part of the fee submitted with the
1169	1169	application returned to the applicant.
1170	1170	SECTION 47. Section 11.1311(a), Water Code, is amended to
1171	1171	read as follows:
1172	1172	(a) If a permit for a reservoir project which is listed on
1173	1173	the effective date of this section as a recommended project in the
1174	1174	current state water plan has been abandoned, voluntarily canceled,
1175	1175	or forfeited for failure to commence construction within the time
1176	1176	specified by law, and the reservoir project site is owned by a
1177	1177	municipality, river authority, other political subdivision, or
1178	1178	water supply corporation organized under Chapter 67, the board
1179	1179	[commission] may reissue that same permit with a new priority date
1180	1180	to the board without notice or hearing[, upon submission of an
1181	1181	application by the board].
1182	1182	SECTION 48. Section 11.132, Water Code, is amended to read
1183	1183	as follows:
1184	1184	Sec. 11.132. NOTICE. (a) Notice shall be given to the
1185	1185	persons who in the judgment of the board [commission] may be
1186	1186	affected by an application, including those persons listed in
1187	1187	Subdivision (2), Subsection (d)[, of this section]. The board
1188	1188	[commission], on the motion of a board member [commissioner] or on
1189	1189	the request of the executive administrator [director] or any
1190	1190	affected person, shall hold a public hearing on the application.
1191	1191	(b) If the proposed use is for irrigation, the board
1192	1192	[commission] shall include in the notice a general description of
1193	1193	the location and area of the land to be irrigated.
1194	1194	(c) In the notice, the board [commission] shall:
1195	1195	(1) state the name and address of the applicant;
1196	1196	(2) state the date the application was filed;
1197	1197	(3) state the purpose and extent of the proposed
1198	1198	appropriation of water;
1199	1199	(4) identify the source of supply and the place where
1200	1200	the water is to be stored or taken or diverted from the source of
1201	1201	supply;
1202	1202	(5) identify any proposed alternative source of water,
1203	1203	other than state water, identified by the applicant;
1204	1204	(6) specify the time and location where the board
1205	1205	[commission] will consider the application; and
1206	1206	(7) give any additional information the board
1207	1207	[commission] considers necessary.
1208	1208	(d) The board [commission] may act on the application
1209	1209	without holding a public hearing if:
1210	1210	(1) not less than 30 days before the date of action on
1211	1211	the application by the board [commission], the applicant has
1212	1212	published the board's [commission's] notice of the application at
1213	1213	least once in a newspaper regularly published or circulated within
1214	1214	the section of the state where the source of water is located;
1215	1215	(2) not less than 30 days before the date of action on
1216	1216	the application by the board [commission], the board [commission]
1217	1217	mails a copy of the notice by first-class mail, postage prepaid, to:
1218	1218	(A) each claimant or appropriator of water from
1219	1219	the source of water supply, the record of whose claim or
1220	1220	appropriation has been filed with the board [commission];
1221	1221	(B) each groundwater conservation district with
1222	1222	jurisdiction over the proposed groundwater production, if the
1223	1223	applicant proposes to use groundwater from a well located within a
1224	1224	groundwater conservation district as an alternative source of
1225	1225	water; and
1226	1226	(C) all navigation districts within the river
1227	1227	basin concerned; and
1228	1228	(3) within 30 days after the date of the newspaper
1229	1229	publication of the board's [commission's] notice, a public hearing
1230	1230	has not been requested in writing by a board member [commissioner],
1231	1231	the executive administrator [director], or an affected person who
1232	1232	objects to the application.
1233	1233	(e) The inadvertent failure of the board [commission] to
1234	1234	mail a notice under Subdivision (2), Subsection (d), [of this
1235	1235	section] to a navigation district that is not a claimant or
1236	1236	appropriator of water does not prevent the board's [commission's]
1237	1237	consideration of the application.
1238	1238	(f) If, on the date specified in the notice prescribed by
1239	1239	Subsection (c) [of this section], the board [commission] determines
1240	1240	that a public hearing must be held, the matter shall be remanded for
1241	1241	hearing without the necessity of issuing further notice other than
1242	1242	advising all parties of the time and place where the hearing is to
1243	1243	convene.
1244	1244	SECTION 49. Section 11.133, Water Code, is amended to read
1245	1245	as follows:
1246	1246	Sec. 11.133. HEARING. At the time and place stated in the
1247	1247	notice, the board [commission] shall hold a hearing on the
1248	1248	application. Any person may appear at the hearing in person or by
1249	1249	attorney or may enter an [his] appearance in writing. Any person
1250	1250	who appears may present objection to the issuance of the permit.
1251	1251	The board [commission] may receive evidence, orally or by
1252	1252	affidavit, in support of or in opposition to the issuance of the
1253	1253	permit, and it may hear arguments.
1254	1254	SECTION 50. Section 11.134, Water Code, is amended to read
1255	1255	as follows:
1256	1256	Sec. 11.134. ACTION ON APPLICATION. (a) After the hearing,
1257	1257	the board [commission] shall make a written decision granting or
1258	1258	denying the application. The application may be granted or denied
1259	1259	in whole or in part.
1260	1260	(b) The board [commission] shall grant the application only
1261	1261	if:
1262	1262	(1) the application conforms to the requirements
1263	1263	prescribed by this chapter and is accompanied by the prescribed
1264	1264	fee;
1265	1265	(2) unappropriated water is available in the source of
1266	1266	supply;
1267	1267	(3) the proposed appropriation:
1268	1268	(A) is intended for a beneficial use;
1269	1269	(B) does not impair existing water rights or
1270	1270	vested riparian rights;
1271	1271	(C) is not detrimental to the public welfare;
1272	1272	(D) considers any applicable environmental flow
1273	1273	standards established under Section 11.1471 and, if applicable, the
1274	1274	assessments performed under Sections 11.147(d) and (e) and Sections
1275	1275	11.150, 11.151, and 11.152; and
1276	1276	(E) addresses a water supply need in a manner
1277	1277	that is consistent with the state water plan and the relevant
1278	1278	approved regional water plan for any area in which the proposed
1279	1279	appropriation is located, unless the board [commission] determines
1280	1280	that conditions warrant waiver of this requirement; and
1281	1281	(4) the applicant has provided evidence that
1282	1282	reasonable diligence will be used to avoid waste and achieve water
1283	1283	conservation as defined by Section 11.002(8)(B).
1284	1284	(b-1) In determining whether an appropriation is
1285	1285	detrimental to the public welfare under Subsection (b)(3)(C), the
1286	1286	board [commission] may consider only the factors that are within
1287	1287	the jurisdiction and expertise of the board [commission] as
1288	1288	established by this chapter.
1289	1289	(c) The board [Beginning January 5, 2002, the commission]
1290	1290	may not issue a water right for municipal purposes in a region that
1291	1291	does not have an approved regional water plan in accordance with
1292	1292	Section 16.053(i) unless the board [commission] determines that
1293	1293	conditions warrant waiver of this requirement.
1294	1294	SECTION 51. Section 11.135, Water Code, is amended to read
1295	1295	as follows:
1296	1296	Sec. 11.135. ISSUANCE OF PERMIT. (a) On approval of an
1297	1297	application, the board [commission] shall issue a permit to the
1298	1298	applicant. The applicant's right to take and use water is limited
1299	1299	to the extent and purposes stated in the permit.
1300	1300	(b) The permit shall be in writing and attested by the seal
1301	1301	of the board [commission], and it shall contain substantially the
1302	1302	following information:
1303	1303	(1) the name of the person to whom the permit is
1304	1304	issued;
1305	1305	(2) the date the permit is issued;
1306	1306	(3) the date the original application was filed;
1307	1307	(4) the use or purpose for which the appropriation is
1308	1308	to be made;
1309	1309	(5) the amount or volume of water authorized to be
1310	1310	appropriated for each purpose; if use of the appropriated water is
1311	1311	authorized for multiple purposes, the permit shall contain a
1312	1312	special condition limiting the total amount of water that may
1313	1313	actually be diverted for all of the purposes to the amount of water
1314	1314	appropriated;
1315	1315	(6) a general description of the source of supply from
1316	1316	which the appropriation is proposed to be made, including any
1317	1317	alternative source of water that is not state water;
1318	1318	(7) the time within which construction or work must
1319	1319	begin and the time within which it must be completed; and
1320	1320	(8) any other information the board [commission]
1321	1321	prescribes.
1322	1322	(c) If the appropriation is for irrigation, the board
1323	1323	[commission] shall also place in the permit a description and
1324	1324	statement of the approximate area of the land to be irrigated.
1325	1325	SECTION 52. Section 11.1351, Water Code, is amended to read
1326	1326	as follows:
1327	1327	Sec. 11.1351. PERMIT RESTRICTIONS. In granting an
1328	1328	application, the board [commission] may direct that stream flow
1329	1329	restrictions and other conditions and restrictions be placed in the
1330	1330	permit being issued to protect the priority of senior water rights.
1331	1331	SECTION 53. Section 11.136(a), Water Code, is amended to
1332	1332	read as follows:
1333	1333	(a) The board [commission] shall transmit the permit by
1334	1334	registered mail to the county clerk of the county in which the
1335	1335	appropriation is to be made.
1336	1336	SECTION 54. Sections 11.137(a) and (c), Water Code, are
1337	1337	amended to read as follows:
1338	1338	(a) The board [commission] may issue seasonal permits in the
1339	1339	same manner that it issues regular permits. The provisions of this
1340	1340	chapter governing issuance of regular permits apply to issuance of
1341	1341	seasonal permits.
1342	1342	(c) In a seasonal permit, the board [commission] shall
1343	1343	specify the conditions necessary to fully protect prior
1344	1344	appropriations or vested rights on the stream.
1345	1345	SECTION 55. Sections 11.138(a), (b), (d), (f), and (g),
1346	1346	Water Code, are amended to read as follows:
1347	1347	(a) The board [commission] may issue temporary permits for
1348	1348	beneficial purposes to the extent that they do not interfere with or
1349	1349	adversely affect prior appropriations or vested rights on the
1350	1350	stream from which water is to be diverted under such temporary
1351	1351	permit. The board [commission] may, by appropriate order,
1352	1352	authorize any member of the board [commission] to approve and issue
1353	1353	temporary permits without notice and hearing if it appears to such
1354	1354	issuing party that sufficient water is available at the proposed
1355	1355	point of diversion to satisfy the requirements of the temporary
1356	1356	permit as well as all existing rights. No temporary permit issued
1357	1357	without notice and hearing shall authorize more than 10 acre-feet
1358	1358	of water, nor may it be for a term in excess of one year.
1359	1359	(b) The board [commission] may prescribe rules governing
1360	1360	notice and procedure for the issuance of temporary permits.
1361	1361	(d) The board [commission] may not issue a temporary permit
1362	1362	for a period exceeding three calendar years.
1363	1363	(f) A temporary permit expires and shall be cancelled by the
1364	1364	board [commission] in accordance with the terms of the permit.
1365	1365	(g) The board [commission] may prescribe by rule the fees to
1366	1366	be paid for issuance of temporary permits, but no fee for issuance
1367	1367	or extension of a temporary permit shall exceed $500.
1368	1368	SECTION 56. Sections 11.1381(a), (b), and (c), Water Code,
1369	1369	are amended to read as follows:
1370	1370	(a) Until a water right is perfected to the full extent
1371	1371	provided by Section 11.026 [of this code], the board [commission]
1372	1372	may issue permits for a term of years for use of state water to which
1373	1373	a senior water right has not been perfected.
1374	1374	(b) The board [commission] shall refuse to grant an
1375	1375	application for a permit under this section if the board
1376	1376	[commission] finds that there is a substantial likelihood that the
1377	1377	issuance of the permit will jeopardize financial commitments made
1378	1378	for water projects that have been built or that are being built to
1379	1379	optimally develop the water resources of the area.
1380	1380	(c) The board [commission] shall refuse to grant an
1381	1381	application for a term permit if the holder of the senior
1382	1382	appropriative water right can demonstrate that the issuance of the
1383	1383	term permit would prohibit the senior appropriative water right
1384	1384	holder from beneficially using the senior rights during the term of
1385	1385	the term permit. Such demonstration will be made using reasonable
1386	1386	projections based on accepted methods.
1387	1387	SECTION 57. Sections 11.139(a), (b), (c), (d), (e), (f),
1388	1388	(g), (h), (i), (j), and (k), Water Code, are amended to read as
1389	1389	follows:
1390	1390	(a) Except as provided by Section 11.148 [of this code], the
1391	1391	board [commission] may grant an emergency permit, order, or
1392	1392	amendment to an existing permit, certified filing, or certificate
1393	1393	of adjudication after notice to the governor for an initial period
1394	1394	of not more than 120 days if the board [commission] finds that
1395	1395	emergency conditions exist which present an imminent threat to the
1396	1396	public health and safety and which override the necessity to comply
1397	1397	with established statutory procedures and there are no feasible
1398	1398	practicable alternatives to the emergency authorization. Such
1399	1399	emergency action may be renewed once for not longer than 60 days.
1400	1400	(b) A person desiring to obtain an emergency authorization
1401	1401	under this section shall submit to the board [commission] a sworn
1402	1402	application containing the following information:
1403	1403	(1) a description of the condition of emergency
1404	1404	justifying the granting of the emergency authorization;
1405	1405	(2) a statement setting forth facts which support the
1406	1406	findings required under this section;
1407	1407	(3) an estimate of the dates on which the proposed
1408	1408	authorization should begin and end;
1409	1409	(4) a description of the action sought and the
1410	1410	activity proposed to be allowed, mandated, or prohibited; and
1411	1411	(5) any other statements or information required by
1412	1412	the board [commission].
1413	1413	(c) If the board [commission] finds the applicant's
1414	1414	statement made under Subsection (b) [of this section] to be
1415	1415	correct, the board [commission] may grant emergency authorizations
1416	1416	under this section without notice and hearing or with such notice
1417	1417	and hearing as the board [commission] considers practicable under
1418	1418	the circumstances.
1419	1419	(d) If the board [commission] grants an emergency
1420	1420	authorization under this section without a hearing, the
1421	1421	authorization shall fix a time and place for a hearing to be held
1422	1422	before the board [commission]. The hearing shall be held as soon
1423	1423	after the emergency authorization is granted as is practicable but
1424	1424	not later than 20 days after the emergency authorization is
1425	1425	granted.
1426	1426	(e) At the hearing, the board [commission] shall affirm,
1427	1427	modify, or set aside the emergency authorization. Any hearing on an
1428	1428	emergency authorization shall be conducted in accordance with
1429	1429	Chapter 2001, Government Code, and rules of the board [commission].
1430	1430	(f) If an imminent threat to the public health and safety
1431	1431	exists which requires emergency action before the board
1432	1432	[commission] can take action as provided by Subsections (a) through
1433	1433	(c) [of this section] and there are no feasible alternatives, the
1434	1434	executive administrator [director] may grant an emergency
1435	1435	authorization after notice to the governor. If the executive
1436	1436	administrator [director] issues an emergency authorization under
1437	1437	this subsection, the board [commission] shall hold a hearing as
1438	1438	provided for in Subsections (d) and (e) [of this section]. The
1439	1439	requirements of Subsection (b) [of this section] shall be satisfied
1440	1440	by the applicant before action is taken by the executive
1441	1441	administrator [director] on the request for emergency
1442	1442	authorization.
1443	1443	(g) The requirements of Section 11.132 [of this code]
1444	1444	relating to the time for notice, newspaper notice, and method of
1445	1445	giving a person notice do not apply to a hearing held on an
1446	1446	application for an emergency authorization under this section, but
1447	1447	such general notice of the hearing shall be given as the board
1448	1448	[commission], under Subsections (c) and (e) [of this section],
1449	1449	considers practicable under the circumstances.
1450	1450	(h) The board [commission] may grant an emergency
1451	1451	authorization under this section for the temporary transfer and use
1452	1452	of all or part of a permit, certified filing, or certificate of
1453	1453	adjudication for other than domestic or municipal use to a retail or
1454	1454	wholesale water supplier for public health and safety purposes. In
1455	1455	addition to the requirements contained in Subsection (b) [of this
1456	1456	section], the board [commission] may direct that the applicant will
1457	1457	timely pay the amounts for which the applicant may be potentially
1458	1458	liable under Subsection (j) [of this section] and to the extent
1459	1459	authorized by law will fully indemnify and hold harmless the state,
1460	1460	the executive administrator [director], and the board [commission]
1461	1461	from any and all liability for the authorization sought. The board
1462	1462	[commission] may order bond or other surety in a form acceptable to
1463	1463	the board [commission] as a condition for such emergency
1464	1464	authorization. The board [commission] may not grant an emergency
1465	1465	authorization under this section which would cause a violation of a
1466	1466	federal regulation.
1467	1467	(i) In transferring the amount of water requested by the
1468	1468	applicant, the executive administrator [director] or the board
1469	1469	[commission] shall allocate the requested amount among two or more
1470	1470	permits, certified filings, or certificates of adjudication for
1471	1471	other than domestic or municipal use.
1472	1472	(j) The person granted an emergency authorization under
1473	1473	Subsection (h) [of this section] is liable to the owner and the
1474	1474	owner's agent or lessee from whom the use is transferred for the
1475	1475	fair market value of the water transferred as well as for any
1476	1476	damages caused by the transfer of use. If, within 60 days of the
1477	1477	termination of the authorization, the parties do not agree on the
1478	1478	amount due, or if full payment is not made, either party may file a
1479	1479	complaint with the board [commission] to determine the amount due.
1480	1480	The board [commission] may use dispute resolution procedures for a
1481	1481	complaint filed under this subsection. After exhausting all
1482	1482	administrative remedies under this subsection, an owner from whom
1483	1483	the use is transferred may file suit to recover or determine the
1484	1484	amount due in a district court in the county where the owner resides
1485	1485	or has its headquarters. The prevailing party in a suit filed under
1486	1486	this subsection is entitled to recover court costs and reasonable
1487	1487	attorney's fees.
1488	1488	(k) The board [commission] may prescribe rules and adopt
1489	1489	fees which are necessary to carry out the provisions of this
1490	1490	section.
1491	1491	SECTION 58. Section 11.140, Water Code, is amended to read
1492	1492	as follows:
1493	1493	Sec. 11.140. PERMITS FOR STORAGE FOR PROJECT DEVELOPMENT.
1494	1494	The board [commission] may issue permits for storage solely for the
1495	1495	purpose of optimum development of projects. The board [commission]
1496	1496	may convert these permits to permits for beneficial use if
1497	1497	application to have them converted is made to the board
1498	1498	[commission].
1499	1499	SECTION 59. Sections 11.1405(a), (c), (d), (e), (f), (g),
1500	1500	and (h), Water Code, are amended to read as follows:
1501	1501	(a) The board [commission] may issue a permit under this
1502	1502	section to authorize a diversion of state water from the Gulf of
1503	1503	Mexico or a bay or arm of the Gulf of Mexico for desalination and use
1504	1504	for industrial purposes if:
1505	1505	(1) the point of diversion is located less than three
1506	1506	miles seaward of any point located on the coast of this state; or
1507	1507	(2) the seawater contains a total dissolved solids
1508	1508	concentration based on a yearly average of samples taken monthly at
1509	1509	the water source of less than 20,000 milligrams per liter.
1510	1510	(c) A person who diverts and uses state water that consists
1511	1511	of marine seawater under a permit issued under Subsection (a) or as
1512	1512	authorized by Subsection (b) must determine the total dissolved
1513	1513	solids concentration of the seawater at the water source by monthly
1514	1514	sampling and analysis and provide the data collected to the board
1515	1515	[commission]. A person may not begin construction of a facility for
1516	1516	the diversion of marine seawater for the purposes provided by this
1517	1517	section without obtaining a permit until the person has provided
1518	1518	data to the board [commission] based on the analysis of samples
1519	1519	taken at the water source over a period of at least one year
1520	1520	demonstrating that Subsection (a)(2) does not apply. A person who
1521	1521	has begun construction of a facility for the diversion of marine
1522	1522	seawater for the purposes provided by this section without
1523	1523	obtaining a permit because the person has demonstrated that
1524	1524	Subsection (a)(2) does not apply is not required to obtain a permit
1525	1525	for the facility if the total dissolved solids concentration of the
1526	1526	seawater at the water source subsequently changes so that
1527	1527	Subsection (a)(2) applies.
1528	1528	(d) A permit application under this section must be
1529	1529	submitted as required by board [commission] rule.
1530	1530	(e) The board [commission] is not required to make a finding
1531	1531	of water availability for an application under this section.
1532	1532	(f) The board [commission] shall evaluate whether any
1533	1533	proposed diversion under this section is consistent with any
1534	1534	applicable environmental flow standards established under Section
1535	1535	11.1471.
1536	1536	(g) The board [commission] may include any provision in a
1537	1537	permit issued under this section that the board [commission]
1538	1538	considers necessary to comply with the environmental flow standards
1539	1539	established under Section 11.1471.
1540	1540	(h) The board [commission] shall adopt rules providing an
1541	1541	expedited procedure for acting on an application for a permit under
1542	1542	Subsection (a). The rules must provide for notice, an opportunity
1543	1543	for the submission of written comment, and an opportunity for a
1544	1544	contested case hearing regarding board [commission] actions
1545	1545	relating to an application for a permit.
1546	1546	SECTION 60. Section 11.141, Water Code, is amended to read
1547	1547	as follows:
1548	1548	Sec. 11.141. DATE OF PRIORITY. When the board [commission]
1549	1549	issues a permit, the priority of the appropriation of water and the
1550	1550	claimant's right to use the water date from the date of filing of
1551	1551	the application.
1552	1552	SECTION 61. Sections 11.1421(c), (d), and (e), Water Code,
1553	1553	are amended to read as follows:
1554	1554	(c) Before a person first takes water under Subsection (b)
1555	1555	[of this section], the person must give notice to the board
1556	1556	[commission] of the proposed appropriation.
1557	1557	(d) Each appropriation of water made under Subsection (b)
1558	1558	[of this section] shall be reported to the board [commission] in the
1559	1559	manner provided by the board's [commission's] rules.
1560	1560	(e) After notice and hearing, if the board [commission]
1561	1561	determines that as a result of low freshwater inflows appropriation
1562	1562	of water under Subsection (b) [of this section] would interfere
1563	1563	with natural productivity of bays and estuaries, the board
1564	1564	[commission] shall issue an order requiring interruption or
1565	1565	reduction of the appropriation.
1566	1566	SECTION 62. Section 11.1422(b), Water Code, is amended to
1567	1567	read as follows:
1568	1568	(b) The executive administrator [director] or a watermaster
1569	1569	who has jurisdiction over the river from which a cemetery diverts
1570	1570	water under this section by order may restrict a diversion
1571	1571	authorized by this section if the executive administrator
1572	1572	[director] or watermaster determines the diversion will harm a
1573	1573	person downstream of the cemetery who acquired a water right before
1574	1574	the date this section took effect. The executive administrator
1575	1575	[director] or watermaster shall limit the restriction to the extent
1576	1576	of the harm and to the period of the harm.
1577	1577	SECTION 63. Sections 11.143(b), (d), (e), (f), (g), (h),
1578	1578	and (i), Water Code, are amended to read as follows:
1579	1579	(b) If the applicant elects to proceed under this section,
1580	1580	the applicant [he] shall submit to the board [commission] a sworn
1581	1581	application, on a form furnished by the board [commission],
1582	1582	containing the following information:
1583	1583	(1) the name and post-office address of the applicant;
1584	1584	(2) the nature and purpose of the use and the amount of
1585	1585	water to be used annually for each purpose;
1586	1586	(3) the major watershed and the tributary (named or
1587	1587	unnamed) on which the dam or reservoir is located;
1588	1588	(4) the county in which the dam or reservoir is
1589	1589	located;
1590	1590	(5) the approximate distance and direction from the
1591	1591	county seat of the county to the location of the dam or reservoir;
1592	1592	(6) the survey or the portion of the survey on which
1593	1593	the dam or reservoir is located and, to the best of the applicant's
1594	1594	knowledge and belief, the distance and direction of the midpoint of
1595	1595	the dam or reservoir from a corner of the survey, which information
1596	1596	the executive administrator [director] may require to be marked on
1597	1597	an aerial photograph or map furnished by the board [commission];
1598	1598	(7) the approximate surface area, to the nearest acre,
1599	1599	of the reservoir when it is full and the average depth in feet when
1600	1600	it is full; and
1601	1601	(8) the approximate number of square miles in the
1602	1602	drainage area above the dam or reservoir.
1603	1603	(d) Except as otherwise specifically provided by this
1604	1604	subsection, before the board [commission] may approve the
1605	1605	application and issue the permit, it shall give notice and hold a
1606	1606	hearing as prescribed by this section. The board [commission] may
1607	1607	act on the application without holding a public hearing if:
1608	1608	(1) not less than 30 days before the date of action on
1609	1609	the application by the board [commission], the applicant has
1610	1610	published the board's [commission's] notice of the application at
1611	1611	least once in a newspaper regularly published or circulated within
1612	1612	the section of the state where the source of water is located;
1613	1613	(2) not less than 30 days before the date of action on
1614	1614	the application by the board [commission], the board [commission]
1615	1615	mails a copy of the notice by first-class mail, postage prepaid, to
1616	1616	each person whose claim or appropriation has been filed with the
1617	1617	board [commission] and whose diversion point is downstream from
1618	1618	that described in the application; and
1619	1619	(3) within 30 days after the date of the newspaper
1620	1620	publication of the board's [commission's] notice, a public hearing
1621	1621	is not requested in writing by a board member [commissioner], the
1622	1622	executive administrator [director], or an affected person who
1623	1623	objects to the application.
1624	1624	(e) In the notice, the board [commission] shall:
1625	1625	(1) state the name and post-office address of the
1626	1626	applicant;
1627	1627	(2) state the date the application was filed;
1628	1628	(3) state the purpose and extent of the proposed
1629	1629	appropriation of water;
1630	1630	(4) identify the source of supply, including any
1631	1631	proposed alternative source of water, other than state water,
1632	1632	identified by the applicant, and the place where the water is
1633	1633	stored; and
1634	1634	(5) specify the time and place of the hearing.
1635	1635	(f) The notice shall be published only once, at least 20
1636	1636	days before the date stated in the notice for the hearing on the
1637	1637	application, in a newspaper having general circulation in the
1638	1638	county where the dam or reservoir is located. At least 15 days
1639	1639	before the date set for the hearing, the board [commission] shall
1640	1640	transmit a copy of the notice by first-class mail to each person
1641	1641	whose claim or appropriation has been filed with the board
1642	1642	[commission] and whose diversion point is downstream from that
1643	1643	described in the application. If the notice identifies groundwater
1644	1644	from a well located in a groundwater conservation district as a
1645	1645	proposed alternative source of water, the notice shall be:
1646	1646	(1) sent to the groundwater conservation district in
1647	1647	which the well is located; and
1648	1648	(2) published, at least 20 days before the date stated
1649	1649	in the notice for the hearing, in a newspaper having general
1650	1650	circulation in each county in which the groundwater district is
1651	1651	located.
1652	1652	(g) If on the date specified in the notice prescribed by
1653	1653	Subsection (d) [of this section], the board [commission] determines
1654	1654	that a public hearing must be held, the matter shall be remanded for
1655	1655	hearing without the necessity of issuing further notice other than
1656	1656	advising all parties of the time and place where the hearing is to
1657	1657	convene.
1658	1658	(h) The applicant shall pay the filing fee prescribed by
1659	1659	Section 12.111(e) [5.701(c)] at the time the applicant [he] files
1660	1660	the application.
1661	1661	(i) The board [commission] shall approve the application
1662	1662	and issue the permit as applied for in whole or part if it
1663	1663	determines that:
1664	1664	(1) there is unappropriated water in the source of
1665	1665	supply;
1666	1666	(2) the applicant has met the requirements of this
1667	1667	section;
1668	1668	(3) the water is to be used for a beneficial purpose;
1669	1669	(4) the proposed use is not detrimental to the public
1670	1670	welfare or to the welfare of the locality; and
1671	1671	(5) the proposed use will not impair existing water
1672	1672	rights.
1673	1673	SECTION 64. Section 11.144, Water Code, is amended to read
1674	1674	as follows:
1675	1675	Sec. 11.144. APPROVAL FOR ALTERATIONS. All holders of
1676	1676	permits and certified filings shall obtain the approval of the
1677	1677	board [commission] before making any alterations, enlargements,
1678	1678	extensions, or other changes to any reservoir, dam, main canal, or
1679	1679	diversion work on which a permit has been granted or a certified
1680	1680	filing recorded. A detailed statement and plans for alterations or
1681	1681	changes shall be filed with the board [commission] and approved by
1682	1682	the executive administrator [director] before the alterations or
1683	1683	changes are made. This section does not apply to the ordinary
1684	1684	maintenance or emergency repair of the facility.
1685	1685	SECTION 65. Section 11.145, Water Code, is amended to read
1686	1686	as follows:
1687	1687	Sec. 11.145. WHEN CONSTRUCTION MUST BEGIN. (a) If a permit
1688	1688	is for appropriation by direct diversion, construction of the
1689	1689	proposed facilities shall begin within the time fixed by the board
1690	1690	[commission], which shall not exceed two years after the date the
1691	1691	permit is issued. The appropriator shall work diligently and
1692	1692	continuously to the completion of the construction. The board
1693	1693	[commission] may, by entering an order of record, extend the time
1694	1694	for beginning construction. The board [commission] may establish
1695	1695	fees, not to exceed $1,000, for extending the time to begin
1696	1696	construction of the proposed facilities.
1697	1697	(b) If the permit contemplates construction of a storage
1698	1698	reservoir, construction shall begin within the time fixed by the
1699	1699	board [commission], not to exceed two years after the date the
1700	1700	permit is issued. The board [commission], by entering an order of
1701	1701	record, may extend the time for beginning construction. The board
1702	1702	[commission] may fix fees, not to exceed $1,000, for extending the
1703	1703	time to begin construction of reservoirs.
1704	1704	SECTION 66. Sections 11.146(c) and (d), Water Code, are
1705	1705	amended to read as follows:
1706	1706	(c) If the board [commission] believes that an
1707	1707	appropriation or permit should be declared forfeited under this
1708	1708	section or any other sections of this code, it should give the
1709	1709	appropriator or permittee 30 days notice and provide the
1710	1710	appropriator or permittee [him] with an opportunity to be heard.
1711	1711	(d) After the hearing, the board [commission] by entering an
1712	1712	order of record may cancel the appropriation in whole or part. The
1713	1713	board [commission] shall immediately transmit a certified copy of
1714	1714	the cancellation order by certified mail to the county clerk of the
1715	1715	county in which the permit is recorded. The county clerk shall
1716	1716	record the cancellation order.
1717	1717	SECTION 67. Sections 11.147(b), (c), (d), (e), (e-1),
1718	1718	(e-3), (f), and (g), Water Code, are amended to read as follows:
1719	1719	(b) In its consideration of an application for a permit to
1720	1720	store, take, or divert water, the board [commission] shall assess
1721	1721	the effects, if any, of the issuance of the permit on the bays and
1722	1722	estuaries of Texas. For permits issued within an area that is 200
1723	1723	river miles of the coast, to commence from the mouth of the river
1724	1724	thence inland, the board [commission] shall include in the permit
1725	1725	any conditions considered necessary to maintain beneficial inflows
1726	1726	to any affected bay and estuary system, to the extent practicable
1727	1727	when considering all public interests and the studies mandated by
1728	1728	Section 16.058 as evaluated under Section 11.1491.
1729	1729	(c) For the purposes of making a determination under
1730	1730	Subsection (b) [of this section], the board [commission] shall
1731	1731	consider among other factors:
1732	1732	(1) the need for periodic freshwater inflows to supply
1733	1733	nutrients and modify salinity to preserve the sound environment of
1734	1734	the bay or estuary, using any available information, including
1735	1735	studies and plans specified in Section 11.1491 [of this code] and
1736	1736	other studies considered by the board [commission] to be reliable;
1737	1737	together with existing circumstances, natural or otherwise, that
1738	1738	might prevent the conditions imposed from producing benefits;
1739	1739	(2) the ecology and productivity of the affected bay
1740	1740	and estuary system;
1741	1741	(3) the expected effects on the public welfare of not
1742	1742	including in the permit some or all of the conditions considered
1743	1743	necessary to maintain the beneficial inflows to the affected bay or
1744	1744	estuary system;
1745	1745	(4) the quantity of water requested and the proposed
1746	1746	use of water by the applicant, as well as the needs of those who
1747	1747	would be served by the applicant;
1748	1748	(5) the expected effects on the public welfare of the
1749	1749	failure to issue all or part of the permit being considered; and
1750	1750	(6) for purposes of this section, the declarations as
1751	1751	to preferences for competing uses of water as found in Sections
1752	1752	11.024 and 11.033, [Water Code,] as well as the public policy
1753	1753	statement in Section 1.003[, Water Code].
1754	1754	(d) In its consideration of an application to store, take,
1755	1755	or divert water, the board [commission] shall include in the
1756	1756	permit, to the extent practicable when considering all public
1757	1757	interests, those conditions considered by the board [commission]
1758	1758	necessary to maintain existing instream uses and water quality of
1759	1759	the stream or river to which the application applies. In
1760	1760	determining what conditions to include in the permit under this
1761	1761	subsection, the board [commission] shall consider among other
1762	1762	factors:
1763	1763	(1) the studies mandated by Section 16.059; and
1764	1764	(2) any water quality assessment performed under
1765	1765	Section 11.150.
1766	1766	(e) The board [commission] shall include in the permit, to
1767	1767	the extent practicable when considering all public interests, those
1768	1768	conditions considered by the board [commission] necessary to
1769	1769	maintain fish and wildlife habitats. In determining what
1770	1770	conditions to include in the permit under this subsection, the
1771	1771	board [commission] shall consider any assessment performed under
1772	1772	Section 11.152.
1773	1773	(e-1) Any permit for a new appropriation of water or an
1774	1774	amendment to an existing water right that increases the amount of
1775	1775	water authorized to be stored, taken, or diverted must include a
1776	1776	provision allowing the board [commission] to adjust the conditions
1777	1777	included in the permit or amended water right to provide for
1778	1778	protection of instream flows or freshwater inflows. With respect
1779	1779	to an amended water right, the provision may not allow the board
1780	1780	[commission] to adjust a condition of the amendment other than a
1781	1781	condition that applies only to the increase in the amount of water
1782	1782	to be stored, taken, or diverted authorized by the amendment. This
1783	1783	subsection does not affect an appropriation of or an authorization
1784	1784	to store, take, or divert water under a permit or amendment to a
1785	1785	water right issued before September 1, 2007. The board
1786	1786	[commission] shall adjust the conditions if the board [commission]
1787	1787	determines, through an expedited public comment process, that such
1788	1788	an adjustment is appropriate to achieve compliance with applicable
1789	1789	environmental flow standards adopted under Section 11.1471. The
1790	1790	adjustment:
1791	1791	(1) in combination with any previous adjustments made
1792	1792	under this subsection may not increase the amount of the
1793	1793	pass-through or release requirement for the protection of instream
1794	1794	flows or freshwater inflows by more than 12.5 percent of the
1795	1795	annualized total of that requirement contained in the permit as
1796	1796	issued or of that requirement contained in the amended water right
1797	1797	and applicable only to the increase in the amount of water
1798	1798	authorized to be stored, taken, or diverted under the amended water
1799	1799	right;
1800	1800	(2) must be based on appropriate consideration of the
1801	1801	priority dates and diversion locations of any other water rights
1802	1802	granted in the same river basin that are subject to adjustment under
1803	1803	this subsection; and
1804	1804	(3) must be based on appropriate consideration of any
1805	1805	voluntary contributions to the Texas Water Trust, and of any
1806	1806	voluntary amendments to existing water rights to change the use of a
1807	1807	specified quantity of water to or add a use of a specified quantity
1808	1808	of water for instream flows dedicated to environmental needs or bay
1809	1809	and estuary inflows as authorized by Section 11.0237(a), that
1810	1810	actually contribute toward meeting the applicable environmental
1811	1811	flow standards.
1812	1812	(e-3) Notwithstanding Subsections (b)-(e), for the purpose
1813	1813	of determining the environmental flow conditions necessary to
1814	1814	maintain freshwater inflows to an affected bay and estuary system,
1815	1815	existing instream uses and water quality of a stream or river, or
1816	1816	fish and aquatic wildlife habitats, the board [commission] shall
1817	1817	apply any applicable environmental flow standard, including any
1818	1818	environmental flow set-aside, adopted under Section 11.1471
1819	1819	instead of considering the factors specified by those subsections.
1820	1820	(f) On receipt of an application for a permit to store,
1821	1821	take, or divert water, the board [commission] shall send a copy of
1822	1822	the permit application and any subsequent amendments to the Parks
1823	1823	and Wildlife Department. At its option, the Parks and Wildlife
1824	1824	Department may be a party in hearings on applications for permits to
1825	1825	store, take, or divert water. In making a final decision on any
1826	1826	application for a permit, the board [commission], in addition to
1827	1827	other information, evidence, and testimony presented, shall
1828	1828	consider all information, evidence, and testimony presented by the
1829	1829	Parks and Wildlife Department [and the board].
1830	1830	(g) The failure of the Parks and Wildlife Department to
1831	1831	appear as a party does not relieve the board [commission] of the
1832	1832	requirements of this section.
1833	1833	SECTION 68. Sections 11.1471(a), (b), (d), (e), and (f),
1834	1834	Water Code, are amended to read as follows:
1835	1835	(a) The board [commission] by rule shall:
1836	1836	(1) adopt appropriate environmental flow standards
1837	1837	for each river basin and bay system in this state that are adequate
1838	1838	to support a sound ecological environment, to the maximum extent
1839	1839	reasonable considering other public interests and other relevant
1840	1840	factors;
1841	1841	(2) establish an amount of unappropriated water, if
1842	1842	available, to be set aside to satisfy the environmental flow
1843	1843	standards to the maximum extent reasonable when considering human
1844	1844	water needs; and
1845	1845	(3) establish procedures for implementing an
1846	1846	adjustment of the conditions included in a permit or an amended
1847	1847	water right as provided by Sections 11.147(e-1) and (e-2).
1848	1848	(b) In adopting environmental flow standards for a river
1849	1849	basin and bay system under Subsection (a)(1), the board
1850	1850	[commission] shall consider:
1851	1851	(1) the definition of the geographical extent of the
1852	1852	river basin and bay system adopted by the advisory group under
1853	1853	Section 11.02362(a) and the definition and designation of the river
1854	1854	basin by the board under Section 16.051(c);
1855	1855	(2) the schedule established by the advisory group
1856	1856	under Section 11.02362(d) or (e) for the adoption of environmental
1857	1857	flow standards for the river basin and bay system, if applicable;
1858	1858	(3) the environmental flow analyses and the
1859	1859	recommended environmental flow regime developed by the applicable
1860	1860	basin and bay expert science team under Section 11.02362(m);
1861	1861	(4) the recommendations developed by the applicable
1862	1862	basin and bay area stakeholders committee under Section 11.02362(o)
1863	1863	regarding environmental flow standards and strategies to meet the
1864	1864	flow standards;
1865	1865	(5) any comments submitted by the advisory group to
1866	1866	the board [commission] under Section 11.02362(q);
1867	1867	(6) the specific characteristics of the river basin
1868	1868	and bay system;
1869	1869	(7) economic factors;
1870	1870	(8) the human and other competing water needs in the
1871	1871	river basin and bay system;
1872	1872	(9) all reasonably available scientific information,
1873	1873	including any scientific information provided by the science
1874	1874	advisory committee; and
1875	1875	(10) any other appropriate information.
1876	1876	(d) As provided by Section 11.023, the board [commission]
1877	1877	may not issue a permit for a new appropriation or an amendment to an
1878	1878	existing water right that increases the amount of water authorized
1879	1879	to be stored, taken, or diverted if the issuance of the permit or
1880	1880	amendment would impair an environmental flow set-aside established
1881	1881	under Subsection (a)(2). A permit for a new appropriation or an
1882	1882	amendment to an existing water right that increases the amount of
1883	1883	water authorized to be stored, taken, or diverted that is issued
1884	1884	after the adoption of an applicable environmental flow set-aside
1885	1885	must contain appropriate conditions to ensure protection of the
1886	1886	environmental flow set-aside.
1887	1887	(e) An environmental flow set-aside established under
1888	1888	Subsection (a)(2) for a river basin and bay system other than the
1889	1889	middle and lower Rio Grande must be assigned a priority date
1890	1890	corresponding to the date the board [commission] receives
1891	1891	environmental flow regime recommendations from the applicable
1892	1892	basin and bay expert science team and be included in the appropriate
1893	1893	water availability models in connection with an application for a
1894	1894	permit for a new appropriation or for an amendment to an existing
1895	1895	water right that increases the amount of water authorized to be
1896	1896	stored, taken, or diverted.
1897	1897	(f) An environmental flow standard or environmental flow
1898	1898	set-aside adopted under Subsection (a) may be altered by the board
1899	1899	[commission] in a rulemaking process undertaken in accordance with
1900	1900	a schedule established by the board [commission]. In establishing
1901	1901	a schedule, the board [commission] shall consider the applicable
1902	1902	work plan approved by the advisory group under Section 11.02362(p).
1903	1903	The board's [commission's] schedule may not provide for the
1904	1904	rulemaking process to occur more frequently than once every 10
1905	1905	years unless the work plan provides for a periodic review under
1906	1906	Section 11.02362(p) to occur more frequently than once every 10
1907	1907	years. In that event, the board [commission] may provide for the
1908	1908	rulemaking process to be undertaken in conjunction with the
1909	1909	periodic review if the board [commission] determines that schedule
1910	1910	to be appropriate. A rulemaking process undertaken under this
1911	1911	subsection must provide for the participation of stakeholders
1912	1912	having interests in the particular river basin and bay system for
1913	1913	which the process is undertaken.
1914	1914	SECTION 69. Section 11.148, Water Code, is amended to read
1915	1915	as follows:
1916	1916	Sec. 11.148. EMERGENCY SUSPENSION OF PERMIT CONDITIONS AND
1917	1917	EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR
1918	1918	ENVIRONMENTAL FLOWS. (a) Permit conditions relating to beneficial
1919	1919	inflows to affected bays and estuaries and instream uses may be
1920	1920	suspended by the board [commission] if the board [commission] finds
1921	1921	that an emergency exists and cannot practically be resolved in
1922	1922	other ways.
1923	1923	(a-1) State water that is set aside by the board
1924	1924	[commission] to meet the needs for freshwater inflows to affected
1925	1925	bays and estuaries and instream uses under Section 11.1471(a)(2)
1926	1926	may be made available temporarily for other essential beneficial
1927	1927	uses if the board [commission] finds that an emergency exists that
1928	1928	cannot practically be resolved in another way.
1929	1929	(b) Before the board [commission] suspends a permit
1930	1930	condition under Subsection (a) or makes water available temporarily
1931	1931	under Subsection (a-1), it must give written notice to the Parks and
1932	1932	Wildlife Department of the proposed action. The board [commission]
1933	1933	shall give the Parks and Wildlife Department an opportunity to
1934	1934	submit comments on the proposed action within 72 hours from such
1935	1935	time and the board [commission] shall consider those comments
1936	1936	before issuing its order implementing the proposed action.
1937	1937	(c) The board [commission] may suspend the permit condition
1938	1938	under Subsection (a) or make water available temporarily under
1939	1939	Subsection (a-1) without notice to any other interested party other
1940	1940	than the Parks and Wildlife Department as provided by Subsection
1941	1941	(b). However, all affected persons shall be notified immediately
1942	1942	by publication, and a hearing to determine whether the suspension
1943	1943	should be continued shall be held within 15 days of the date on
1944	1944	which the order to suspend is issued.
1945	1945	SECTION 70. Section 11.1491, Water Code, is amended to read
1946	1946	as follows:
1947	1947	Sec. 11.1491. EVALUATION OF BAYS AND ESTUARIES DATA. (a)
1948	1948	The Parks and Wildlife Department and the board [commission] shall
1949	1949	have joint responsibility to review the studies prepared under
1950	1950	Section 16.058, to determine inflow conditions necessary for the
1951	1951	bays and estuaries, and to provide information necessary for water
1952	1952	resources management. Each agency shall designate an employee to
1953	1953	share equally in the oversight of the program. Other
1954	1954	responsibilities shall be divided between the Parks and Wildlife
1955	1955	Department and the board [commission] to maximize present in-house
1956	1956	capabilities of personnel and to minimize costs to the state. Each
1957	1957	agency shall have reasonable access to all information produced by
1958	1958	the other agency. Publication of reports completed under this
1959	1959	section shall be submitted for comment to the board [commission],
1960	1960	the Parks and Wildlife Department, the advisory group, the science
1961	1961	advisory committee, and any applicable basin and bay area
1962	1962	stakeholders committee and basin and bay expert science team.
1963	1963	(b) [(c)] The board may authorize the use of money from the
1964	1964	research and planning fund established by Chapter 15 [of this code]
1965	1965	to accomplish the purposes of this section. These funds shall be
1966	1966	used by the board [commission] in cooperation with the Parks and
1967	1967	Wildlife Department for interagency contracts with cooperating
1968	1968	agencies and universities, and contracts with private sector
1969	1969	establishments, as necessary, to accomplish the purposes of this
1970	1970	section.
1971	1971	SECTION 71. Section 11.150, Water Code, is amended to read
1972	1972	as follows:
1973	1973	Sec. 11.150. EFFECTS OF PERMITS ON WATER QUALITY. In
1974	1974	consideration of an application for a permit under this subchapter,
1975	1975	the board [commission] shall assess the effects, if any, of the
1976	1976	issuance of the permit on water quality in this state.
1977	1977	SECTION 72. Section 11.1501, Water Code, is amended to read
1978	1978	as follows:
1979	1979	Sec. 11.1501. CONSIDERATION AND REVISION OF PLANS. In
1980	1980	considering an application for a permit to store, take, or divert
1981	1981	surface water, or for an amendment to a permit, certified filing, or
1982	1982	certificate of adjudication, the board [commission] shall consider
1983	1983	the state water plan and any approved regional water plan for the
1984	1984	area or areas in which the water is proposed to be stored, diverted,
1985	1985	or used.
1986	1986	SECTION 73. Section 11.151, Water Code, is amended to read
1987	1987	as follows:
1988	1988	Sec. 11.151. EFFECTS OF PERMITS ON GROUNDWATER. In
1989	1989	considering an application for a permit to store, take, or divert
1990	1990	surface water, the board [commission] shall consider the effects,
1991	1991	if any, on groundwater or groundwater recharge.
1992	1992	SECTION 74. Section 11.152, Water Code, is amended to read
1993	1993	as follows:
1994	1994	Sec. 11.152. ASSESSMENT OF EFFECTS OF PERMITS ON FISH AND
1995	1995	WILDLIFE HABITATS. In its consideration of an application for a
1996	1996	permit to store, take, or divert water in excess of 5,000 acre feet
1997	1997	per year, the board [commission] shall assess the effects, if any,
1998	1998	on the issuance of the permit on fish and wildlife habitats and may
1999	1999	require the applicant to take reasonable actions to mitigate
2000	2000	adverse impacts on such habitat. In determining whether to require
2001	2001	an applicant to mitigate adverse impacts on a habitat, the board
2002	2002	[commission] may consider any net benefit to the habitat produced
2003	2003	by the project. The board [commission] shall offset against any
2004	2004	mitigation required by the U.S. Fish and Wildlife Service pursuant
2005	2005	to 33 C.F.R. Parts 320-330 any mitigation authorized by this
2006	2006	section.
2007	2007	SECTION 75. Section 11.153(c), Water Code, is amended to
2008	2008	read as follows:
2009	2009	(c) This section does not preclude the board [commission]
2010	2010	from considering an aquifer storage and recovery project to be a
2011	2011	component of a project permitted under this chapter that is not
2012	2012	required to be based on the continuous availability of historic,
2013	2013	normal stream flow.
2014	2014	SECTION 76. Sections 11.171(3) and (4), Water Code, are
2015	2015	amended to read as follows:
2016	2016	(3) "Certificate of adjudication" means a certificate
2017	2017	issued by the commission under former Section 11.323 [of this
2018	2018	code].
2019	2019	(4) "Permit" means an authorization by the board or by
2020	2020	the commission under former law granting a person the right to use
2021	2021	water.
2022	2022	SECTION 77. Section 11.173(b), Water Code, is amended to
2023	2023	read as follows:
2024	2024	(b) A permit, certified filing, or certificate of
2025	2025	adjudication or a portion of a permit, certified filing, or
2026	2026	certificate of adjudication is exempt from cancellation under
2027	2027	Subsection (a):
2028	2028	(1) to the extent of the owner's participation in the
2029	2029	Conservation Reserve Program authorized by the Food Security Act,
2030	2030	Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985)
2031	2031	or a similar governmental program;
2032	2032	(2) if a significant portion of the water authorized
2033	2033	to be used pursuant to a permit, certified filing, or certificate of
2034	2034	adjudication has been used in accordance with a specific
2035	2035	recommendation for meeting a water need included in the regional
2036	2036	water plan approved pursuant to Section 16.053;
2037	2037	(3) if the permit, certified filing, or certificate of
2038	2038	adjudication:
2039	2039	(A) was obtained to meet demonstrated long-term
2040	2040	public water supply or electric generation needs as evidenced by a
2041	2041	water management plan developed by the holder; and
2042	2042	(B) is consistent with projections of future
2043	2043	water needs contained in the state water plan;
2044	2044	(4) if the permit, certified filing, or certificate of
2045	2045	adjudication was obtained as the result of the construction of a
2046	2046	reservoir funded, in whole or in part, by the holder of the permit,
2047	2047	certified filing, or certificate of adjudication as part of the
2048	2048	holder's long-term water planning; or
2049	2049	(5) to the extent the nonuse resulted from:
2050	2050	(A) the implementation of water conservation
2051	2051	measures under a water conservation plan submitted by the holder of
2052	2052	the permit, certified filing, or certificate of adjudication as
2053	2053	evidenced by implementation reports submitted by the holder;
2054	2054	(B) a suspension, adjustment, or other
2055	2055	restriction on the use of the water authorized to be appropriated
2056	2056	under the permit, certified filing, or certificate of adjudication
2057	2057	imposed under an order issued by the executive administrator
2058	2058	[director]; or
2059	2059	(C) an inability to appropriate the water
2060	2060	authorized to be appropriated under the permit, certified filing,
2061	2061	or certificate of adjudication due to drought conditions.
2062	2062	SECTION 78. Section 11.174, Water Code, is amended to read
2063	2063	as follows:
2064	2064	Sec. 11.174. BOARD [COMMISSION] MAY INITIATE PROCEEDINGS.
2065	2065	When the board [commission] finds that its records do not show that
2066	2066	some portion of the water has been used during the past 10 years,
2067	2067	the executive administrator [director] may initiate proceedings,
2068	2068	terminated by public hearing, to cancel the permit, certified
2069	2069	filing, or certificate of adjudication in whole or in part.
2070	2070	SECTION 79. Section 11.175, Water Code, is amended to read
2071	2071	as follows:
2072	2072	Sec. 11.175. NOTICE. (a) At least 45 days before the date
2073	2073	of the hearing, the board [commission] shall send notice of the
2074	2074	hearing to the holder of the permit, certified filing, or
2075	2075	certificate of adjudication being considered for cancellation in
2076	2076	whole or in part. Notice shall be sent by certified mail, return
2077	2077	receipt requested, to the last address shown by the records of the
2078	2078	board [commission]. The board [commission] shall also send notice
2079	2079	by regular mail to all other holders of permits, certified filings,
2080	2080	certificates of adjudication, and claims of unadjudicated water
2081	2081	rights filed pursuant to former Section 11.303 [of this code] in the
2082	2082	same watershed.
2083	2083	(b) The board [commission] shall also have the notice of the
2084	2084	hearing published once a week for two consecutive weeks, at least 30
2085	2085	days before the date of the hearing, in a newspaper published in
2086	2086	each county in which diversion of water from the source of supply
2087	2087	was authorized or proposed to be made and in each county in which
2088	2088	the water was authorized or proposed to be used, as shown by the
2089	2089	records of the board [commission]. If in any such county no
2090	2090	newspaper is published, then the notice may be published in a
2091	2091	newspaper having general circulation in the county.
2092	2092	SECTION 80. Section 11.176(a), Water Code, is amended to
2093	2093	read as follows:
2094	2094	(a) Except as provided by Subsection (b) [of this section],
2095	2095	the board [commission] shall hold a hearing and shall give the
2096	2096	holder of the permit, certified filing, or certificate of
2097	2097	adjudication and other interested persons an opportunity to be
2098	2098	heard and to present evidence on any matter pertinent to the
2099	2099	questions at issue.
2100	2100	SECTION 81. Section 11.177, Water Code, is amended to read
2101	2101	as follows:
2102	2102	Sec. 11.177. BOARD [COMMISSION] FINDING; ACTION. (a) At
2103	2103	the conclusion of the hearing, the board [commission] shall cancel
2104	2104	the permit, certified filing, or certificate of adjudication in
2105	2105	whole or in part to the extent that it finds that:
2106	2106	(1) the water or any portion of the water appropriated
2107	2107	under the permit, certified filing, or certificate of adjudication
2108	2108	has not been put to an authorized beneficial use during the 10-year
2109	2109	period; and
2110	2110	(2) the holder has not used reasonable diligence in
2111	2111	applying the water or the unused portion of the water to an
2112	2112	authorized beneficial use or is otherwise unjustified in the
2113	2113	nonuse.
2114	2114	(b) In determining what constitutes reasonable diligence or
2115	2115	a justified nonuse as used in Subsection (a)(2), the board
2116	2116	[commission] shall give consideration to:
2117	2117	(1) whether sufficient water is available in the
2118	2118	source of supply to meet all or part of the appropriation during the
2119	2119	10-year period of nonuse;
2120	2120	(2) whether the nonuse is justified by the holder's
2121	2121	participation in the federal Conservation Reserve Program or a
2122	2122	similar governmental program as provided by Section 11.173(b)(1);
2123	2123	(3) whether the existing or proposed authorized
2124	2124	purpose and place of use are consistent with an approved regional
2125	2125	water plan as provided by Section 16.053;
2126	2126	(4) whether the permit, certified filing, or
2127	2127	certificate of adjudication has been deposited into the Texas Water
2128	2128	Bank as provided by Sections 15.7031 and 15.704 or whether it can be
2129	2129	shown that the water right or water available under the right is
2130	2130	currently being made available for purchase through private
2131	2131	marketing efforts; or
2132	2132	(5) whether the permit, certified filing, or
2133	2133	certificate of adjudication has been reserved to provide for
2134	2134	instream flows or bay and estuary inflows.
2135	2135	SECTION 82. Section 11.183, Water Code, is amended to read
2136	2136	as follows:
2137	2137	Sec. 11.183. RESERVOIR. If the holder of a permit,
2138	2138	certified filing, or certificate of adjudication has facilities for
2139	2139	the storage of water in a reservoir, the board [commission] may
2140	2140	allow the holder [him] to retain the impoundment to the extent of
2141	2141	the conservation storage capacity of the reservoir for domestic,
2142	2142	livestock, or recreation purposes.
2143	2143	SECTION 83. Section 11.203, Water Code, is amended to read
2144	2144	as follows:
2145	2145	Sec. 11.203. ARTESIAN WELL: DRILLING RECORD. A person who
2146	2146	drills an artesian well or has one drilled shall keep a complete and
2147	2147	accurate record of the depth, thickness, and character of the
2148	2148	different strata penetrated and when the well is completed shall
2149	2149	transmit a copy of the record to the board [commission] by
2150	2150	registered or certified mail.
2151	2151	SECTION 84. Section 11.204, Water Code, is amended to read
2152	2152	as follows:
2153	2153	Sec. 11.204. REPORT OF NEW ARTESIAN WELL. Within one year
2154	2154	after an artesian well is drilled, the owner or operator shall
2155	2155	transmit to the board [commission] a sworn report stating the
2156	2156	result of the drilling operation, the use to which the water will be
2157	2157	applied, and the contemplated extent of the use.
2158	2158	SECTION 85. Section 11.206, Water Code, is amended to read
2159	2159	as follows:
2160	2160	Sec. 11.206. IMPROPERLY CASED WELL: NUISANCE. An artesian
2161	2161	well that is not tightly cased, capped, and furnished with
2162	2162	mechanical appliances that readily and effectively prevent water
2163	2163	from flowing out of the well and running over the surface of the
2164	2164	ground above the well or wasting through the strata through which it
2165	2165	passes is a public nuisance and subject to abatement by the
2166	2166	executive administrator [director].
2167	2167	SECTION 86. Sections 11.207(a) and (b), Water Code, are
2168	2168	amended to read as follows:
2169	2169	(a) Not later than March 1 of each year, a person who during
2170	2170	any part of the preceding calendar year owned or operated an
2171	2171	artesian well for any purpose other than domestic use shall file a
2172	2172	report to the board [commission] on a form supplied by the board
2173	2173	[commission].
2174	2174	(b) The report shall state:
2175	2175	(1) the quantity of water which was obtained from the
2176	2176	well;
2177	2177	(2) the nature of the uses to which the water was
2178	2178	applied;
2179	2179	(3) the change in the level of the well's water table;
2180	2180	and
2181	2181	(4) other information required by the board
2182	2182	[commission].
2183	2183	SECTION 87. Section 11.325, Water Code, is amended to read
2184	2184	as follows:
2185	2185	Sec. 11.325. WATER DIVISIONS. The board [commission] shall
2186	2186	divide the state into water divisions for the purpose of
2187	2187	administering adjudicated water rights. Water divisions may be
2188	2188	created from time to time as the necessity arises. The divisions
2189	2189	shall be constituted to secure the best protection to the holders of
2190	2190	water rights and the most economical supervision on the part of the
2191	2191	state.
2192	2192	SECTION 88. Section 11.326, Water Code, is amended to read
2193	2193	as follows:
2194	2194	Sec. 11.326. APPOINTMENT OF WATERMASTER. (a) The
2195	2195	executive administrator [director] may appoint one watermaster for
2196	2196	each water division.
2197	2197	(b) A watermaster holds office until a successor is
2198	2198	appointed. The executive administrator [director] may remove a
2199	2199	watermaster at any time.
2200	2200	(c) The executive administrator [director] may employ
2201	2201	assistant watermasters and other employees necessary to aid a
2202	2202	watermaster in the discharge of the watermaster's [his] duties.
2203	2203	(d) In a water division in which the office of watermaster
2204	2204	is vacant, the executive administrator [director] has the powers of
2205	2205	a watermaster.
2206	2206	(e) The executive administrator [director] shall supervise
2207	2207	and generally direct the watermaster in the performance of the
2208	2208	watermaster's [his] duties as defined in Section 11.327. A
2209	2209	watermaster is responsible to the executive administrator
2210	2210	[director] for the proper performance of the watermaster's [his]
2211	2211	duties.
2212	2212	(f) A person dissatisfied with any action of a watermaster
2213	2213	may apply to the executive administrator [director] for relief.
2214	2214	(g) For a water basin in which a watermaster is not
2215	2215	appointed, the executive administrator [director] shall:
2216	2216	(1) evaluate the water basin at least once every five
2217	2217	years to determine whether a watermaster should be appointed; and
2218	2218	(2) report the findings and make recommendations to
2219	2219	the board [commission].
2220	2220	(h) The board [commission] shall:
2221	2221	(1) determine the criteria or risk factors to be
2222	2222	considered in an evaluation under Subsection (g); and
2223	2223	(2) include the findings and recommendations under
2224	2224	Subsection (g) in the board's [commission's] biennial report to the
2225	2225	legislature.
2226	2226	SECTION 89. Sections 11.3261(a), (c), (d), and (e), Water
2227	2227	Code, are amended to read as follows:
2228	2228	(a) The executive administrator [director] shall establish
2229	2229	a watermaster advisory committee consisting of a minimum of nine
2230	2230	members, but no more than 15 members, who are holders of water
2231	2231	rights or representatives of holders of water rights in the water
2232	2232	division of a watermaster. In appointing members of the advisory
2233	2233	committee the executive administrator [director] shall consider
2234	2234	geographic representation, amount of water rights held, different
2235	2235	types of holders of water rights and users such as water districts,
2236	2236	municipal suppliers, irrigators, and industrial users, and
2237	2237	experience and knowledge in water management practices.
2238	2238	(c) An advisory committee member shall serve a term of two
2239	2239	years from the date of initial appointment by the executive
2240	2240	administrator [director] and hold office until a successor is
2241	2241	appointed.
2242	2242	(d) The advisory committee shall meet within 30 days
2243	2243	following initial appointment by the executive administrator
2244	2244	[director] and elect a presiding officer who shall serve on an
2245	2245	annual basis. Following the first meeting, the committee shall
2246	2246	meet regularly as necessary.
2247	2247	(e) The advisory committee's duties include:
2248	2248	(1) providing recommendations to the executive
2249	2249	administrator [director] regarding activities of benefit to the
2250	2250	holders of water rights in the administration and distribution of
2251	2251	water to holders of water rights;
2252	2252	(2) review and comment to the executive administrator
2253	2253	[director] on the annual budget of the watermaster operations; and
2254	2254	(3) other duties as may be requested by the executive
2255	2255	administrator [director] with regard to the watermaster operations
2256	2256	or as requested by holders of water rights in a water division which
2257	2257	the committee deems of benefit to the administration of water
2258	2258	rights in water divisions.
2259	2259	SECTION 90. Section 11.327(d), Water Code, is amended to
2260	2260	read as follows:
2261	2261	(d) A watermaster's duties shall not include activities
2262	2262	which relate to other programs of the board [commission], except in
2263	2263	situations of imminent threat to public health and safety or the
2264	2264	environment.
2265	2265	SECTION 91. Sections 11.3271(e), (f), (g), (h), and (i),
2266	2266	Water Code, are amended to read as follows:
2267	2267	(e) The watermaster's duties do not include activities that
2268	2268	relate to other programs of the board [commission], except as
2269	2269	provided by this section. The watermaster's duties shall include
2270	2270	activities that relate to situations of imminent threat to public
2271	2271	health and safety or the environment. The board [commission] shall
2272	2272	adopt rules:
2273	2273	(1) defining situations of imminent threat under this
2274	2274	section; and
2275	2275	(2) addressing the watermaster's duties in response to
2276	2276	terrorism.
2277	2277	(f) The watermaster may store in a reservoir for release at
2278	2278	a later time water in transit that is being conveyed down the banks
2279	2279	and bed of the Rio Grande under a permit issued by the board
2280	2280	[commission] and in accordance with rules prescribed by the board
2281	2281	[commission]. In this section, "water in transit" means privately
2282	2282	owned water, not including state water, that a person has pumped
2283	2283	from an underground reservoir and that is in transit between the
2284	2284	point of discharge into the river and the place of use or the point
2285	2285	of diversion by a person who has contracted with the owner of the
2286	2286	water to purchase the water. The contract must specify that the
2287	2287	contract is for the purchase and delivery of a specified amount of
2288	2288	water less the carriage losses incurred in transit, as described
2289	2289	and measured according to board [commission] rules.
2290	2290	(g) The watermaster may store water under Subsection (f)
2291	2291	only if the storage does not hinder the ability of any other holders
2292	2292	of Rio Grande surface water rights to store the maximum authorized
2293	2293	capacity in a reservoir as specified by board [commission] rules
2294	2294	and relevant permits, certified filings, or certificates of
2295	2295	adjudication.
2296	2296	(h) Before granting a permit to convey water down the banks
2297	2297	and bed of the Rio Grande, the board [commission] shall adopt rules
2298	2298	that provide for the methods and procedures by which the
2299	2299	watermaster shall account for any discharge, delivery, conveyance,
2300	2300	storage, diversion, or associated loss of water conveyed down the
2301	2301	banks and bed of the Rio Grande. A permit to convey water down the
2302	2302	banks and bed of the Rio Grande may not allow the permit holder to
2303	2303	share in any beneficial state water inflows into the Rio Grande.
2304	2304	The permit holder is entitled to convey only the amount of water
2305	2305	specified in the permit, less the carriage losses incurred in
2306	2306	transit, as described and measured according to board [commission]
2307	2307	rules. A rule adopted by the board [commission] under this
2308	2308	subsection must be consistent with the Treaty Relating to the
2309	2309	Utilization of the Waters of the Colorado and Tijuana Rivers, and of
2310	2310	the Rio Grande (Rio Bravo) from Fort Quitman, Texas, to the Gulf of
2311	2311	Mexico, concluded by the United States and the United Mexican
2312	2312	States on February 3, 1944, and with any minute order adopted by the
2313	2313	International Boundary and Water Commission.
2314	2314	(i) In considering an application for a permit to convey
2315	2315	water down the banks and bed of the Rio Grande, the board
2316	2316	[commission] shall consider the quality of the water to be
2317	2317	conveyed. The board [commission] may not issue a permit if it
2318	2318	determines that the water to be conveyed would degrade the water
2319	2319	quality of the Rio Grande.
2320	2320	SECTION 92. Section 11.3271(j), Water Code, as added by
2321	2321	Chapter 385 (S.B. 1902), Acts of the 78th Legislature, Regular
2322	2322	Session, 2003, is amended to read as follows:
2323	2323	(j) Notwithstanding any other law, the watermaster is the
2324	2324	official recorder for all instruments, including deeds, deeds of
2325	2325	trust, financing statements, security agreements, and liens, that
2326	2326	the board [commission] authorizes or requires to be filed in
2327	2327	connection with water rights relating to water in the lower,
2328	2328	middle, or upper basin of the Rio Grande that are subject to a
2329	2329	permit, certified filing, or certificate of adjudication. An
2330	2330	instrument shall be filed with the watermaster under this
2331	2331	subsection in the same manner as required by other law for the same
2332	2332	type of instrument. The filing of an instrument under this
2333	2333	subsection results in the same legal and administrative status and
2334	2334	consequences as a filing under other law for the same type of
2335	2335	instrument. An instrument filed under this subsection shall be
2336	2336	construed by a court, financial institution, or other affected
2337	2337	person in the same manner as an instrument of the same type that is
2338	2338	filed under other law. The watermaster may charge and collect a fee
2339	2339	for the recordation of instruments under this subsection in the
2340	2340	same amount as the fee collected by the county clerk of Cameron
2341	2341	County for the recordation of similar instruments. The board
2342	2342	[commission] by rule shall prescribe the procedures necessary for
2343	2343	the proper implementation of this subsection, including reasonable
2344	2344	transition provisions, if appropriate.
2345	2345	SECTION 93. Sections 11.329(a), (b), (c), (f), and (g),
2346	2346	Water Code, are amended to read as follows:
2347	2347	(a) The board [commission] shall pay the compensation and
2348	2348	necessary expenses of a watermaster, assistant watermasters, and
2349	2349	other necessary employees, but the holders of water rights that
2350	2350	have been determined or adjudicated and are to be administered by
2351	2351	the watermaster shall reimburse the board [commission] for the
2352	2352	compensation and expenses. Necessary expenses shall be limited to
2353	2353	costs associated with streamflow measurement and monitoring, water
2354	2354	accounting, assessment billing and collection associated with a
2355	2355	watermaster's operation, and other duties a watermaster may be
2356	2356	required to perform under this subchapter.
2357	2357	(b) After the adjudication decree becomes final, and each
2358	2358	fiscal year thereafter, the executive administrator [director]
2359	2359	shall provide notice to each holder of water rights under the
2360	2360	decree, at least 30 days prior to the board's [commission's] holding
2361	2361	a public hearing as provided in Subsection (c), of the proposed
2362	2362	budget for their watermaster operations showing the amount of
2363	2363	compensation and expenses that will be required annually for the
2364	2364	administration of the water rights so determined. This budget
2365	2365	shall be furnished to the watermaster advisory committee for
2366	2366	comment at least 30 days prior to notification to each holder of
2367	2367	water rights.
2368	2368	(c) The board [commission] shall hold a public hearing on
2369	2369	the proposed fiscal year budget for each watermaster operation.
2370	2370	The board [commission] shall determine the apportionment of the
2371	2371	costs of administration of adjudicated water rights among the
2372	2372	holders of the rights. After a public hearing, the board
2373	2373	[commission] shall issue an order assessing the annual cost against
2374	2374	the holders of water rights to whom the water will be distributed
2375	2375	under the final decree. The board [commission] shall equitably
2376	2376	apportion the costs. The executive administrator [director] may
2377	2377	provide for payments in installments and shall specify the dates by
2378	2378	which payments shall be made to the board [commission]. At the
2379	2379	request of the watermaster advisory committee the board
2380	2380	[commission] may modify a fiscal year budget for any water
2381	2381	division.
2382	2382	(f) An order of the board [commission] assessing costs
2383	2383	remains in effect until the board [commission] issues a further
2384	2384	order. The board [commission] may modify, revoke, or supersede an
2385	2385	order assessing costs with a subsequent order. The board
2386	2386	[commission] may issue supplementary orders from time to time to
2387	2387	apply to new diversions.
2388	2388	(g) The board [commission] may not assess costs under this
2389	2389	section against a holder of a non-priority hydroelectric right that
2390	2390	owns or operates privately owned facilities that collectively have
2391	2391	a capacity of less than two megawatts or against a holder of a water
2392	2392	right placed in the Texas Water Trust for a term of at least 20
2393	2393	years.
2394	2394	SECTION 94. Section 11.329(d), Water Code, as amended by
2395	2395	Chapters 333 (H.B. 3231) and 696 (S.B. 1406), Acts of the 75th
2396	2396	Legislature, Regular Session, 1997, is reenacted and amended to
2397	2397	read as follows:
2398	2398	(d) The executive administrator [director] shall collect
2399	2399	the assessments and shall account for assessments separately for
2400	2400	each water division and shall deposit assessments collected to a
2401	2401	special fund known as the watermaster fund established and governed
2402	2402	by Section 11.3291.
2403	2403	SECTION 95. Sections 11.3291(a), (b), (d), and (e), Water
2404	2404	Code, are amended to read as follows:
2405	2405	(a) The watermaster fund is created as a special fund in the
2406	2406	state treasury and shall be administered by the board [commission]
2407	2407	under this subchapter and rules adopted by the board [commission].
2408	2408	(b) The legislature hereby appropriates without further
2409	2409	legislative action any funds deposited in the watermaster
2410	2410	[watermaster's] fund as provided in this subchapter. The
2411	2411	watermaster fund shall be used:
2412	2412	(1) to pay the compensation and expenses of the
2413	2413	watermaster in each water division;
2414	2414	(2) to pay expenditures for equipment, facilities, and
2415	2415	capital expenditures necessary to the watermaster operation when
2416	2416	recommended by the watermaster advisory committee and the executive
2417	2417	administrator [director] and approved by the board [commission]
2418	2418	when hearings are required as provided in Section 11.329; and
2419	2419	(3) to pay into the general revenue fund for use
2420	2420	without further appropriation for purposes of providing overhead
2421	2421	and administrative expenses of the board [commission] in an amount
2422	2422	not greater than 10 percent times the approved annual budget under
2423	2423	this subchapter in a water division. Any amounts not used in one
2424	2424	fiscal year shall be carried over and used for the following fiscal
2425	2425	year's operational expenses of the watermaster.
2426	2426	(d) The watermaster fund shall consist of:
2427	2427	(1) fees collected in each water division;
2428	2428	(2) money from gifts, grants, or donations to the fund
2429	2429	for designated or general lawful use; and
2430	2430	(3) money from any other source designated by the
2431	2431	legislature or the board [commission].
2432	2432	(e) The board [commission] may invest, reinvest, and direct
2433	2433	the investment of any available money in the fund as provided by law
2434	2434	for the investment of money under Section 404.024, Government Code.
2435	2435	SECTION 96. Section 11.330, Water Code, is amended to read
2436	2436	as follows:
2437	2437	Sec. 11.330. OUTLET FOR FREE PASSAGE OF WATER. The owner of
2438	2438	any works for the diversion or storage of water shall maintain a
2439	2439	substantial headgate at the point of diversion, or a gate on each
2440	2440	discharge pipe of a pumping plant, constructed so that it can be
2441	2441	locked at the proper place by the watermaster, or a suitable outlet
2442	2442	in a dam to allow the free passage of water that the owner of the dam
2443	2443	is not entitled to divert or impound. The board [commission] shall
2444	2444	adopt rules, and the executive administrator [director] shall
2445	2445	enforce the rules, governing the type and location of the headgates
2446	2446	or gates and the outlets to allow the free passage of water.
2447	2447	SECTION 97. Section 11.331, Water Code, is amended to read
2448	2448	as follows:
2449	2449	Sec. 11.331. MEASURING DEVICES. The board [commission], by
2450	2450	rule, may require the owner of any works for the diversion, taking,
2451	2451	storage, or distribution of water to construct and maintain
2452	2452	suitable measuring devices at points that will enable the
2453	2453	watermaster to determine the quantities of water to be diverted,
2454	2454	taken, stored, released, or distributed in order to satisfy the
2455	2455	rights of the respective users.
2456	2456	SECTION 98. Section 11.332, Water Code, is amended to read
2457	2457	as follows:
2458	2458	Sec. 11.332. INSTALLATION OF FLUMES. The board
2459	2459	[commission], by rule, may require flumes to be installed along the
2460	2460	line of any ditch if necessary for the protection of water rights or
2461	2461	other property.
2462	2462	SECTION 99. Section 11.333, Water Code, is amended to read
2463	2463	as follows:
2464	2464	Sec. 11.333. FAILURE TO COMPLY WITH BOARD [COMMISSION]
2465	2465	RULES. If the owner of waterworks using state water refuses or
2466	2466	neglects to comply with the rules adopted pursuant to Section
2467	2467	11.330, 11.331, or 11.332 [of this code], the executive
2468	2468	administrator [director], after 10 days' [days] notice or after a
2469	2469	period of additional time that is reasonable under the
2470	2470	circumstances, may direct the watermaster to make adjustments of
2471	2471	the control works to prevent the owner of the works from diverting,
2472	2472	taking, storing, or distributing any water until the owner [he] has
2473	2473	fully complied with the rules.
2474	2474	SECTION 100. Section 11.334, Water Code, is amended to read
2475	2475	as follows:
2476	2476	Sec. 11.334. SUIT AGAINST BOARD [COMMISSION] FOR INJURY.
2477	2477	Any person who is injured by an act of the board [commission] under
2478	2478	this subchapter may bring suit against the board [commission] to
2479	2479	review the action or to obtain an injunction. If the water right
2480	2480	involved has been adjudicated as provided in this subchapter as it
2481	2481	previously existed, the court shall issue an injunction only if it
2482	2482	is shown that the board [commission] has failed to carry into effect
2483	2483	the decree adjudicating the water right.
2484	2484	SECTION 101. Sections 11.335(a) and (c), Water Code, are
2485	2485	amended to read as follows:
2486	2486	(a) If any area in which water rights of record in the office
2487	2487	of the board [commission] have not been adjudicated, the claimants
2488	2488	of the rights and the board [commission] may enter into a written
2489	2489	agreement for their administration.
2490	2490	(c) An agreement to administer unadjudicated water rights
2491	2491	shall be recorded in the offices of the board [commission] and of
2492	2492	the county clerk of each county in which any of the works or lands
2493	2493	affected by the agreement are located.
2494	2494	SECTION 102. Section 11.336, Water Code, is amended to read
2495	2495	as follows:
2496	2496	Sec. 11.336. ADMINISTRATION OF PERMITS ISSUED AFTER
2497	2497	ADJUDICATION. Permits, other than temporary permits, that are
2498	2498	issued by the board [commission] to appropriate water from an
2499	2499	adjudicated stream or segment are subject to administration in the
2500	2500	same manner as is provided in this subchapter for adjudicated water
2501	2501	rights.
2502	2502	SECTION 103. Section 11.337, Water Code, is amended to read
2503	2503	as follows:
2504	2504	Sec. 11.337. HEARINGS: NOTICE AND PROCEDURE. (a) The
2505	2505	board [commission] shall give notice of a hearing or other
2506	2506	proceeding it orders under this subchapter in the manner prescribed
2507	2507	in the procedural rules of the board [commission], unless this
2508	2508	subchapter specifically provides otherwise.
2509	2509	(b) In any proceeding in any part of the state, the board
2510	2510	[commission] may:
2511	2511	(1) take evidence, including the testimony of
2512	2512	witnesses;
2513	2513	(2) administer oaths;
2514	2514	(3) issue subpoenas and compel the attendance of
2515	2515	witnesses in the same manner as subpoenas are issued out of the
2516	2516	courts of the state;
2517	2517	(4) compel witnesses to testify and give evidence; and
2518	2518	(5) order the taking of depositions and issue
2519	2519	commissions for the taking of depositions in the same manner as
2520	2520	depositions are obtained in civil actions.
2521	2521	(c) Evidence may be taken by a duly appointed reporter
2522	2522	before the board [commission] or before an authorized
2523	2523	representative who has the power to administer oaths.
2524	2524	(d) If a person neglects or refuses to comply with an order
2525	2525	or subpoena issued by the board [commission] or refuses to testify
2526	2526	on any matter about which the person [he] may be lawfully
2527	2527	interrogated, the board [commission] may apply to a district court
2528	2528	of the county in which the proceeding is held to punish the person
2529	2529	[him] in the manner provided by law for such disobedience in civil
2530	2530	actions.
2531	2531	(e) The board [commission] may adjourn its proceedings from
2532	2532	time to time and from place to place.
2533	2533	(f) When a proceeding before the board [commission] is
2534	2534	concluded, the board [commission] shall render a decision as to the
2535	2535	matters concerning which the proceeding was held.
2536	2536	SECTION 104. Section 11.338, Water Code, is amended to read
2537	2537	as follows:
2538	2538	Sec. 11.338. CANCELLATION OF WATER RIGHTS. Nothing in this
2539	2539	subchapter recognizes any abandoned or cancelled water right or
2540	2540	impairs in any way the power of the board [commission] under general
2541	2541	law to forfeit, cancel, or find abandoned any water right,
2542	2542	including adjudicated water rights.
2543	2543	SECTION 105. Section 11.340(a), Water Code, is amended to
2544	2544	read as follows:
2545	2545	(a) Nothing in this subchapter prevents or precludes a
2546	2546	person who claims the right to divert water from a stream from
2547	2547	filing and prosecuting to a conclusion a suit against other
2548	2548	claimants of the right to divert or use water from the same stream.
2549	2549	However, if the board [commission] has ordered a determination of
2550	2550	water rights as provided in this subchapter or if the board
2551	2551	[commission] orders such a determination within 90 days after
2552	2552	notice of the filing of a suit, the suit shall be abated on the
2553	2553	motion of the board [commission] or any party in interest as to any
2554	2554	issues involved in the water rights determination.
2555	2555	SECTION 106. The heading to Subchapter I, Chapter 11, Water
2556	2556	Code, is amended to read as follows:
2557	2557	SUBCHAPTER I. BOARD-APPOINTED [COMMISSION-APPOINTED] WATERMASTER
2558	2558	SECTION 107. Section 11.451, Water Code, is amended to read
2559	2559	as follows:
2560	2560	Sec. 11.451. BOARD [COMMISSION] AUTHORITY. On petition of
2561	2561	25 or more holders of water rights in a river basin or segment of a
2562	2562	river basin or on its own motion the board [commission] may
2563	2563	authorize the executive administrator [director] to appoint a
2564	2564	watermaster for a river basin or segment of a river basin if the
2565	2565	board [commission] finds that the rights of senior water rights
2566	2566	holders in the basin or segment of the basin are threatened.
2567	2567	SECTION 108. Section 11.452, Water Code, is amended to read
2568	2568	as follows:
2569	2569	Sec. 11.452. PROCEDURE FOR DETERMINATION. (a) On
2570	2570	receiving a petition for appointment of a watermaster or on its own
2571	2571	motion, the board [commission] shall call and hold a hearing to
2572	2572	determine if a need exists for appointment of a watermaster for the
2573	2573	river basin or segment of the river basin.
2574	2574	(b) At the hearing persons who hold water rights in the
2575	2575	river basin or segment of the river basin may appear before the
2576	2576	board [commission] and submit testimony and evidence relating to
2577	2577	the need for appointment of a watermaster.
2578	2578	(c) After the hearing, the board [commission] shall make a
2579	2579	written determination as to whether a threat exists to the rights of
2580	2580	senior water rights holders in the river basin or segment of the
2581	2581	river basin and shall issue an order either finding that a threat
2582	2582	exists and directing appointment of a watermaster or denying
2583	2583	appointment of a watermaster.
2584	2584	SECTION 109. Sections 11.453(a), (c), (d), (e), (f), and
2585	2585	(g), Water Code, are amended to read as follows:
2586	2586	(a) On issuance of an order under Section 11.452 [of this
2587	2587	chapter] directing appointment of a watermaster, the executive
2588	2588	administrator [director] shall appoint a watermaster for the river
2589	2589	basin or segment of the river basin covered by the board
2590	2590	[commission] order.
2591	2591	(c) A watermaster holds office until a successor is
2592	2592	appointed. The executive administrator [director] may remove a
2593	2593	watermaster at any time.
2594	2594	(d) The executive administrator [director] may employ
2595	2595	assistant watermasters and other employees necessary to aid a
2596	2596	watermaster in the discharge of the watermaster's [his] duties.
2597	2597	(e) In a segment or basin in which the office of watermaster
2598	2598	is vacant, the executive administrator [director] has the powers of
2599	2599	a watermaster.
2600	2600	(f) The executive administrator [director] shall supervise
2601	2601	and generally direct the watermaster in the performance of the
2602	2602	watermaster's [his] duties. A watermaster is responsible to the
2603	2603	executive administrator [director] for the proper performance of
2604	2604	the watermaster's [his] duties.
2605	2605	(g) A person dissatisfied with any action of a watermaster
2606	2606	may apply to the executive administrator [director] for relief.
2607	2607	SECTION 110. Sections 11.4531(a) and (e), Water Code, are
2608	2608	amended to read as follows:
2609	2609	(a) For each river basin or segment of a river basin for
2610	2610	which the executive administrator [director] appoints a
2611	2611	watermaster under this subchapter, the executive administrator
2612	2612	[director] shall appoint a watermaster advisory committee
2613	2613	consisting of at least nine but not more than 15 members. A member
2614	2614	of the advisory committee must be a holder of a water right or a
2615	2615	representative of a holder of a water right in the river basin or
2616	2616	segment of the river basin for which the watermaster is appointed.
2617	2617	In appointing members to the advisory committee, the executive
2618	2618	administrator [director] shall consider:
2619	2619	(1) geographic representation;
2620	2620	(2) amount of water rights held;
2621	2621	(3) different types of holders of water rights and
2622	2622	users, including water districts, municipal suppliers, irrigators,
2623	2623	and industrial users; and
2624	2624	(4) experience and knowledge of water management
2625	2625	practices.
2626	2626	(e) The advisory committee shall:
2627	2627	(1) make recommendations to the executive
2628	2628	administrator [director] regarding activities of benefit to the
2629	2629	holders of water rights in the administration and distribution of
2630	2630	water to holders of water rights in the river basin or segment of
2631	2631	the river basin for which the watermaster is appointed;
2632	2632	(2) review and comment to the executive administrator
2633	2633	[director] on the annual budget of the watermaster operation; and
2634	2634	(3) perform other advisory duties as requested by the
2635	2635	executive administrator [director] regarding the watermaster
2636	2636	operation or as requested by holders of water rights and considered
2637	2637	by the committee to benefit the administration of water rights in
2638	2638	the river basin or segment of the river basin for which the
2639	2639	watermaster is appointed.
2640	2640	SECTION 111. Section 11.455(b), Water Code, is amended to
2641	2641	read as follows:
2642	2642	(b) The executive administrator [director] shall deposit
2643	2643	the assessments collected under this section to the credit of the
2644	2644	watermaster fund.
2645	2645	SECTION 112. Section 11.456, Water Code, is amended to read
2646	2646	as follows:
2647	2647	Sec. 11.456. MAINTAINING CURRENT STATUS. (a) To protect
2648	2648	water rights holders in a river basin or segment of a river basin
2649	2649	during the proceedings under Section 11.452 [of this code], the
2650	2650	board [commission] may issue an order or orders at the beginning of
2651	2651	the proceedings under Section 11.452 [of this code] or may request
2652	2652	the attorney general to seek injunctive relief to protect the water
2653	2653	rights holders during the proceedings.
2654	2654	(b) On request of the board [commission], the attorney
2655	2655	general shall seek injunctive relief to carry out the purpose of
2656	2656	Subsection (a) [of this section].
2657	2657	(c) The board [commission] is not required to comply with
2658	2658	the requirements of Chapter 2001, Government Code, in issuing
2659	2659	orders under Subsection (a) [of this section] and there is no right
2660	2660	of appeal from those orders.
2661	2661	SECTION 113. Section 11.457, Water Code, is amended to read
2662	2662	as follows:
2663	2663	Sec. 11.457. ASSISTANCE TO WATERMASTER. The executive
2664	2664	administrator [director] shall provide the watermaster with such
2665	2665	staff and facilities as are necessary to carry out this subchapter.
2666	2666	SECTION 114. Section 11.551(3), Water Code, is amended to
2667	2667	read as follows:
2668	2668	(3) "Program" means the Concho River Watermaster
2669	2669	Program, a division of the South Texas Watermaster established by
2670	2670	the commission [Texas Commission on Environmental Quality] and
2671	2671	operating pursuant to rules and regulations promulgated by the
2672	2672	board [Texas Commission on Environmental Quality].
2673	2673	SECTION 115. Section 11.556(a), Water Code, is amended to
2674	2674	read as follows:
2675	2675	(a) The executive administrator [director] shall appoint a
2676	2676	person who resides in the area described by Section 11.553 to the
2677	2677	South Texas Watermaster Advisory Committee.
2678	2678	SECTION 116. Sections 11.557(a), (b), and (c), Water Code,
2679	2679	are amended to read as follows:
2680	2680	(a) The Concho River Watermaster Advisory Committee
2681	2681	consists of 13 members appointed by the executive administrator
2682	2682	[director] as follows:
2683	2683	(1) six members selected from nominations received,
2684	2684	one representing the City of Paint Rock and one representing each of
2685	2685	the following stream segments or tributaries of the Concho River:
2686	2686	Spring Creek, Dove Creek, South Concho, Middle Concho, and main
2687	2687	stem of the Concho below Certificate of Adjudication No. 14-1337
2688	2688	(River Order No. 5460010000);
2689	2689	(2) six members selected from a list of candidates
2690	2690	submitted by the City of San Angelo; and
2691	2691	(3) one member selected at the executive
2692	2692	administrator's [director's] discretion.
2693	2693	(b) If the executive administrator [director] does not
2694	2694	receive nominations or a list of candidates as specified under
2695	2695	Subsection (a), after reasonable notice the executive
2696	2696	administrator [director] may appoint to the advisory committee the
2697	2697	appropriate number of members selected at the executive
2698	2698	administrator's [director's] discretion.
2699	2699	(c) If a vacancy occurs on the advisory committee, the
2700	2700	executive administrator [director] shall fill the vacancy for the
2701	2701	unexpired term by appointing a person selected in the same manner as
2702	2702	the person being replaced.
2703	2703	SECTION 117. Section 11.561, Water Code, is amended to read
2704	2704	as follows:
2705	2705	Sec. 11.561. APPLICABILITY OF OTHER LAW AND BOARD
2706	2706	[COMMISSION] RULES. A provision of this code or a rule adopted by
2707	2707	the board [commission] that relates to watermasters and does not
2708	2708	conflict with the provisions of this subchapter applies to the
2709	2709	program established under this subchapter.
2710	2710	SECTION 118. Section 12.011, Water Code, is amended to read
2711	2711	as follows:
2712	2712	Sec. 12.011. PERMIT APPLICATIONS. The board [commission]
2713	2713	shall receive, administer, and act on all applications for permits
2714	2714	and permit amendments:
2715	2715	(1) to appropriate public water for beneficial use or
2716	2716	storage; or
2717	2717	(2) to construct works for the impoundment, storage,
2718	2718	diversion, or transportation of public water.
2719	2719	SECTION 119. Section 12.012, Water Code, is amended to read
2720	2720	as follows:
2721	2721	Sec. 12.012. EVALUATION OF OUTSTANDING PERMITS. The board
2722	2722	[commission] shall actively and continually evaluate outstanding
2723	2723	permits and certified filings and shall carry out measures to
2724	2724	cancel wholly or partially the certified filings and permits that
2725	2725	are subject to cancellation.
2726	2726	SECTION 120. Section 12.014, Water Code, is amended to read
2727	2727	as follows:
2728	2728	Sec. 12.014. USE OF BOARD [COMMISSION] SURVEYS; POLICY.
2729	2729	The board [commission] shall make use of surveys, studies, and
2730	2730	investigations conducted by the staff of the board [commission] in
2731	2731	order to ascertain the character of the principal requirements of
2732	2732	the district regional division of the watershed areas of the state
2733	2733	for beneficial uses of water, to the end that distribution of the
2734	2734	right to take and use state water may be more equitably administered
2735	2735	in the public interest, that privileges granted for recognized uses
2736	2736	may be economically coordinated so as to achieve the maximum of
2737	2737	public value from the state's water resources, and that the
2738	2738	distinct regional necessities for water control and conservation
2739	2739	and for control of harmful floods may be recognized.
2740	2740	SECTION 121. Section 12.017, Water Code, is amended to read
2741	2741	as follows:
2742	2742	Sec. 12.017. POWER TO ENTER LAND. Any member or employee of
2743	2743	the commission or the board may enter any person's land, natural
2744	2744	waterway, or artificial waterway for the purpose of making an
2745	2745	investigation that would, in the judgment of the executive director
2746	2746	or the executive administrator, as applicable, assist the
2747	2747	commission or the board, as applicable, in the discharge of its
2748	2748	duties.
2749	2749	SECTION 122. Section 12.051(e), Water Code, is amended to
2750	2750	read as follows:
2751	2751	(e) In determining feasibility, the board shall consider,
2752	2752	among other relevant factors:
2753	2753	(1) the effect of the federal project on water users on
2754	2754	the stream as certified by the board [commission];
2755	2755	(2) the public interest to be served;
2756	2756	(3) the development of damsites to the optimum
2757	2757	potential for water conservation;
2758	2758	(4) the integration of the federal project with other
2759	2759	water conservation activities;
2760	2760	(5) the protection of the state's interests in its
2761	2761	water resources; and
2762	2762	(6) the engineering practicality of the federal
2763	2763	project, including cost of construction, operation, and
2764	2764	maintenance.
2765	2765	SECTION 123. Subchapter E, Chapter 12, Water Code, is
2766	2766	amended by adding Section 12.111 to read as follows:
2767	2767	Sec. 12.111. FEES. (a) The executive administrator shall
2768	2768	charge and collect the fees prescribed by law. The executive
2769	2769	administrator shall make a record of fees prescribed when due and
2770	2770	shall render an account to the person charged with the fees. Each
2771	2771	fee is a separate charge and is in addition to other fees unless
2772	2772	provided otherwise. Except as otherwise provided, a fee assessed
2773	2773	and collected under this section shall be deposited to the credit of
2774	2774	the water resource management account.
2775	2775	(b) Notwithstanding other provisions, the board by rule may
2776	2776	establish due dates, schedules, and procedures for assessment,
2777	2777	collection, and remittance of fees due the board to ensure the
2778	2778	cost-effective administration of revenue collection and cash
2779	2779	management programs.
2780	2780	(c) Notwithstanding other provisions, the board by rule
2781	2781	shall establish uniform and consistent requirements for the
2782	2782	assessment of penalties and interest for late payment of fees owed
2783	2783	the state under the board's jurisdiction. Penalties and interest
2784	2784	established under this section may not exceed rates established for
2785	2785	delinquent taxes under Sections 111.060 and 111.061, Tax Code.
2786	2786	(d) Except as otherwise provided by law, the fee for filing
2787	2787	an application or petition is $100 plus the cost of any required
2788	2788	notice.
2789	2789	(e) The fee for filing a water permit application is $100
2790	2790	plus the cost of required notice.
2791	2791	(f) The fee for filing an application for fixing or
2792	2792	adjusting rates is $100 plus the cost of required notice.
2793	2793	(g) The fee for recording an instrument in the office of the
2794	2794	board is $1.25 per page.
2795	2795	(h) The fee for the use of water for irrigation is 50 cents
2796	2796	per acre to be irrigated.
2797	2797	(i) The fee for impounding water, except under Section
2798	2798	11.142, is 50 cents per acre-foot of storage, based on the total
2799	2799	holding capacity of the reservoir at normal operating level.
2800	2800	(j) The fee for other uses of water not specifically named
2801	2801	in this section is $1 per acre-foot, except that a political
2802	2802	subdivision may not be required to pay fees to use water for
2803	2803	recharge of underground freshwater-bearing sands and aquifers or
2804	2804	for abatement of natural pollution. A fee is not required for a
2805	2805	water right that is deposited into the Texas Water Trust.
2806	2806	(k) A fee charged under Subsections (h) through (j) for one
2807	2807	use of water under a permit from the board may not exceed $50,000.
2808	2808	The fee for each additional use of water under a permit for which
2809	2809	the maximum fee is paid may not exceed $10,000.
2810	2810	(l) The fees prescribed by Subsections (h) through (j) are
2811	2811	one-time fees, payable when the application for an appropriation is
2812	2812	made. However, if the total fee for a permit exceeds $1,000, the
2813	2813	applicant shall pay one-half of the fee when the application is
2814	2814	filed and one-half within 180 days after notice is mailed to the
2815	2815	applicant that the permit is granted. If the applicant does not pay
2816	2816	all of the amount owed before beginning to use water under the
2817	2817	permit, the permit is annulled.
2818	2818	(m) If a permit is annulled, the matter reverts to the
2819	2819	status of a pending, filed application and, on the payment of use
2820	2820	fees as provided by Subsections (h) through (l) together with
2821	2821	sufficient postage fees for mailing notice of hearing, the board
2822	2822	shall set the application for hearing and proceed as provided by
2823	2823	this code.
2824	2824	(n) A fee imposed under Subsection (j) for the use of saline
2825	2825	tidal water for industrial processes is $1 per acre-foot of water
2826	2826	diverted for the industrial process, not to exceed a total fee of
2827	2827	$5,000.
2828	2828	(o) Notwithstanding any other law, fees collected for
2829	2829	deposit to the water resource management account under the
2830	2830	following statutes may be appropriated and used to protect water
2831	2831	resources in this state, including assessment of water quality,
2832	2832	reasonably related to the activities of any of the persons required
2833	2833	to pay a fee under:
2834	2834	(1) Subsections (d) and (e), to the extent those fees
2835	2835	are collected in connection with water use permits;
2836	2836	(2) Subsections (h) through (l);
2837	2837	(3) Section 11.138(g); and
2838	2838	(4) Section 11.145.
2839	2839	SECTION 124. Section 12.113, Water Code, is amended to read
2840	2840	as follows:
2841	2841	Sec. 12.113. DISPOSITION OF FEES, ETC. (a) The commission
2842	2842	or board, as applicable, shall immediately deposit in the State
2843	2843	Treasury the fees and charges it collects.
2844	2844	(b) The board [commission] shall deposit all costs
2845	2845	collected under Subchapter G, Chapter 11, [of this code] in the
2846	2846	State Treasury to the credit of the watermaster administration
2847	2847	account, from which the board [commission] shall pay all expenses
2848	2848	necessary to efficiently administer and perform the duties
2849	2849	described in Sections 11.325 through 11.335 [of this code].
2850	2850	SECTION 125. Section 12.114, Water Code, is amended to read
2851	2851	as follows:
2852	2852	Sec. 12.114. DISPOSITION OF FEES PENDING DETERMINATION.
2853	2853	The commission or board, as applicable, shall hold all fees, except
2854	2854	filing fees, which are paid with an application until the
2855	2855	commission or board, as applicable, finally determines whether the
2856	2856	application should be granted. If the application is not granted,
2857	2857	the commission or board, as applicable, shall return the fees to the
2858	2858	applicant.
2859	2859	SECTION 126. Subchapter E, Chapter 12, Water Code, is
2860	2860	amended by adding Section 12.115 to read as follows:
2861	2861	Sec. 12.115. FEES FOR GROUNDWATER STUDIES AND
2862	2862	DETERMINATIONS. (a) A person who sells wholesale surface water or
2863	2863	groundwater, for uses other than domestic or livestock use, shall
2864	2864	annually report to the board the number of acre-feet sold. The
2865	2865	board may create forms for the reports.
2866	2866	(b) Retail and wholesale water supplies may include the fees
2867	2867	from this section in their cost of service. A person described by
2868	2868	Subsection (a) shall pay the board a fee to be set by the board, not
2869	2869	to exceed $1.60 per acre-foot sold, for:
2870	2870	(1) wholesale water sold in a year, measured from
2871	2871	September 1 through August 31 of the following year; and
2872	2872	(2) water sold in a water market subject to Chapter 14.
2873	2873	(c) The board shall use a fee collected under this section
2874	2874	to fund the scientific studies and duties required by Section
2875	2875	16.012 and to operate groundwater management authorities.
2876	2876	(d) The reports and fees required by this section are due
2877	2877	not later than October 1 of each year, from sales that occurred from
2878	2878	September 1 of the previous calendar year through August 31 of the
2879	2879	current calendar year.
2880	2880	SECTION 127. Section 13.144, Water Code, is amended to read
2881	2881	as follows:
2882	2882	Sec. 13.144. NOTICE OF WHOLESALE WATER SUPPLY CONTRACT. A
2883	2883	district or authority created under Section 52, Article III, or
2884	2884	Section 59, Article XVI, Texas Constitution, a retail public
2885	2885	utility, a wholesale water service, or other person providing a
2886	2886	retail public utility with a wholesale water supply shall provide
2887	2887	the utility commission, the board, and the commission with a
2888	2888	certified copy of any wholesale water supply contract with a retail
2889	2889	public utility within 30 days after the date of the execution of the
2890	2890	contract. The submission must include the amount of water being
2891	2891	supplied, term of the contract, consideration being given for the
2892	2892	water, purpose of use, location of use, source of supply, point of
2893	2893	delivery, limitations on the reuse of water, a disclosure of any
2894	2894	affiliated interest between the parties to the contract, and any
2895	2895	other condition or agreement relating to the contract.
2896	2896	SECTION 128. Section 13.148, Water Code, as added by
2897	2897	Chapter 234 (H.B. 252), Acts of the 83rd Legislature, Regular
2898	2898	Session, 2013, is amended to read as follows:
2899	2899	Sec. 13.148. WATER SHORTAGE REPORT. (a) A retail public
2900	2900	utility and each entity from which the utility is obtaining
2901	2901	wholesale water service for the utility's retail system shall
2902	2902	notify the commission and the board when the utility or entity is
2903	2903	reasonably certain that the water supply will be available for less
2904	2904	than 180 days.
2905	2905	(b) The commission shall adopt rules to implement this
2906	2906	section and prescribe the form and content of notice required under
2907	2907	this section.
2908	2908	SECTION 129. Section 13.381, Water Code, is amended to read
2909	2909	as follows:
2910	2910	Sec. 13.381. RIGHT TO JUDICIAL REVIEW; EVIDENCE. Any party
2911	2911	to a proceeding before the utility commission, the board, or the
2912	2912	commission is entitled to judicial review under the substantial
2913	2913	evidence rule.
2914	2914	SECTION 130. Subtitle B, Title 2, Water Code, is amended by
2915	2915	adding Chapter 14 to read as follows:
2916	2916	CHAPTER 14. WATER MARKETS
2917	2917	SUBCHAPTER A. GENERAL PROVISIONS
2918	2918	Sec. 14.001. DECLARATION OF POLICY. The state shall
2919	2919	develop, maintain, and make available to governmental and private
2920	2920	sector decision-makers, world class scientific modeling,
2921	2921	monitoring, and forecasting data for surface water and groundwater
2922	2922	availability in a manner that optimizes economic, social, and
2923	2923	environmental outcomes. The state's policy is to monetize surface
2924	2924	water and groundwater through water trading free markets that
2925	2925	establish true market value. Water shall be freely transported
2926	2926	across the state without unjustified governmental regulation,
2927	2927	other than regulation necessary to conserve the state's natural and
2928	2928	ecological resources, and to ensure environmental sustainability.
2929	2929	Sec. 14.002. DEFINITIONS. In this chapter:
2930	2930	(1) "Board" means the Texas Water Development Board.
2931	2931	(2) "Commission" means the Texas Commission on
2932	2932	Environmental Quality.
2933	2933	(3) "Market" means a system for buying, selling, and
2934	2934	trading rights to water.
2935	2935	(4) "Railroad commission" means the Railroad
2936	2936	Commission of Texas.
2937	2937	(5) "Retail public utility" has the meaning assigned
2938	2938	by Section 13.002.
2939	2939	SUBCHAPTER B. WATER MARKETS AND CONSERVATION MEASURES
2940	2940	Sec. 14.021. STATEMENT OF POLICY. (a) It is the policy of
2941	2941	this state, to the fullest extent possible, to promote and
2942	2942	encourage private capital and resources to be invested, including
2943	2943	in public-private partnerships, to develop water, including the
2944	2944	construction of reservoirs, pipelines, treatment facilities,
2945	2945	aquifer recharge facilities, desalination facilities, and other
2946	2946	water development assets or technologies.
2947	2947	(b) The commission is encouraged to promptly review new
2948	2948	technologies for water development, treatment, and transportation.
2949	2949	Sec. 14.022. MARKETS. (a) The board shall administer water
2950	2950	markets for surface water and groundwater in the state.
2951	2951	(b) The board may contract with third parties to administer
2952	2952	one or more markets.
2953	2953	Sec. 14.023. PRIVATELY FUNDED PROJECTS. (a)
2954	2954	Notwithstanding any other provision of this code, for a water
2955	2955	development project that is fully or partially funded by private
2956	2956	capital, an agency or political subdivision may not require the
2957	2957	project to be listed on the state water plan or approved by a
2958	2958	regional planning group as a condition to receive a permit or other
2959	2959	authorization for the use of water.
2960	2960	(b) A political subdivision, public water supply
2961	2961	corporation, district, or authority may enter into an agreement
2962	2962	with one or more private entities to develop water and wastewater
2963	2963	projects, including agreements in which one or more private
2964	2964	entities own or operate water or wastewater development,
2965	2965	transportation, treatment, processing, distribution, or collection
2966	2966	facilities.
2967	2967	Sec. 14.024. RECYCLING FRACKING WATERS. A contract entered
2968	2968	into between landowners and oil and gas exploration companies may
2969	2969	not require the use of non-brackish water for fracking and other oil
2970	2970	and gas exploration.
2971	2971	Sec. 14.025. CONSERVATION PRICING. A retail public utility
2972	2972	shall, for its retail water rates, adopt a progressive pricing
2973	2973	scheme to encourage water conservation.
2974	2974	Sec. 14.026. SMALLER RETAIL WATER UTILITIES. A wholesale
2975	2975	water provider that supplies a retail public utility that provides
2976	2976	potable water service to a customer base of 100,000 or fewer
2977	2977	customers shall offer that retail public utility a renewal of its
2978	2978	wholesale water contract for a period of not less than 20 years.
2979	2979	The wholesale water provider may not increase the water rates
2980	2980	charged to the retail utility by more than 20 percent of the
2981	2981	previous year's rates of the expiring contract for the first five
2982	2982	years of the new contract, and, after the first five years may not
2983	2983	increase the rate charged by more than 20 percent for each
2984	2984	subsequent five-year period.
2985	2985	SECTION 131. Section 15.326, Water Code, is amended to read
2986	2986	as follows:
2987	2987	Sec. 15.326. PREFERENCES. The board shall give political
2988	2988	subdivisions a preferential right, but not an exclusive right, to
2989	2989	purchase, acquire, or lease facilities and to purchase water from
2990	2990	facilities. Preferences shall be given in these respects in accord
2991	2991	with the provisions of Section 11.123 [of this code. The board and
2992	2992	the commission shall coordinate their efforts to meet these
2993	2993	objectives and to assure that the public water of this state, which
2994	2994	is held in trust for the use and benefit of the public, will be
2995	2995	conserved, developed, and utilized in the greatest practicable
2996	2996	measure for the public welfare].
2997	2997	SECTION 132. Section 15.7031(c), Water Code, is amended to
2998	2998	read as follows:
2999	2999	(c) The dedication of any water rights placed in trust must
3000	3000	be reviewed and approved by the board [commission], in consultation
3001	3001	with the commission [board] and the Parks and Wildlife Department.
3002	3002	In addition, the Department of Agriculture may provide input to the
3003	3003	board [commission], as appropriate, during the review and approval
3004	3004	process for dedication of water rights.
3005	3005	SECTION 133. Sections 15.704(a) and (b), Water Code, are
3006	3006	amended to read as follows:
3007	3007	(a) A water right may be deposited in the water bank for an
3008	3008	initial term of up to 10 years, unless otherwise held in the Texas
3009	3009	Water Trust as established under Section 15.7031 [of this code],
3010	3010	during which time the water right is exempt from cancellation by the
3011	3011	board [commission] under the terms of Subchapter E of Chapter 11 [of
3012	3012	this code]. A water right is exempt from cancellation under this
3013	3013	subsection only once even if it has been transferred or
3014	3014	redeposited.
3015	3015	(b) The board [commission] may not bring a cancellation
3016	3016	action under Subchapter E of Chapter 11 [of this code] for a 10-year
3017	3017	period following board [commission] approval of any necessary
3018	3018	actions relating to a water right which has been transferred while
3019	3019	on deposit in the water bank.
3020	3020	SECTION 134. Section 15.706, Water Code, is amended to read
3021	3021	as follows:
3022	3022	Sec. 15.706. REPORTS. The [commission and the] board shall
3023	3023	provide ready access by the commission [other agency] through
3024	3024	manual or computer capabilities to all water rights permits, final
3025	3025	water rights decisions, applications, amendments, contracts,
3026	3026	computerized files, computer programs, and other information
3027	3027	related to water rights and to the operation of the water bank. The
3028	3028	board [commission] shall provide the commission [board] with all
3029	3029	notices of proposed water rights actions.
3030	3030	SECTION 135. Sections 16.012(b), (c), (g), (h), (i), (j),
3031	3031	(k), (l), and (m), Water Code, are amended to read as follows:
3032	3032	(b) The executive administrator shall:
3033	3033	(1) determine suitable locations for future water
3034	3034	facilities, including reservoir sites;
3035	3035	(2) determine suitable, cost-effective water supply
3036	3036	alternatives on a regional basis, including voluntary means of
3037	3037	encouraging aggressive water conservation;
3038	3038	(3) locate land best suited for irrigation;
3039	3039	(4) make estimates of the cost of proposed irrigation
3040	3040	works and the improvement of reservoir sites;
3041	3041	(5) examine and survey reservoir sites;
3042	3042	(6) monitor the effects of fresh water inflows upon
3043	3043	the bays and estuaries of Texas;
3044	3044	(7) monitor instream flows;
3045	3045	(8) lead a statewide effort, in coordination with
3046	3046	federal, state, and local governments, institutions of higher
3047	3047	education, and other interested parties, to develop a network for
3048	3048	collecting and disseminating water resource-related information
3049	3049	that is sufficient to support assessment of ambient water
3050	3050	conditions statewide;
3051	3051	(9) make recommendations for optimizing the
3052	3052	efficiency and effectiveness of water resource data collection and
3053	3053	dissemination as necessary to ensure that basic water resource data
3054	3054	are maintained and available for Texas; [and]
3055	3055	(10) make basic data and summary information developed
3056	3056	under this subsection accessible to state agencies and other
3057	3057	interested persons; and
3058	3058	(11) assist groundwater management authorities in
3059	3059	developing desired future conditions and groundwater availability
3060	3060	for the aquifers of this state.
3061	3061	(c) In performing the duties required under Subdivisions
3062	3062	(1), (4), (5), (6), and (7) of Subsection (b), the executive
3063	3063	administrator shall consider advice from the Parks and Wildlife
3064	3064	Department and the commission. In addition, the Department of
3065	3065	Agriculture may provide advice to the executive administrator,
3066	3066	where appropriate, regarding any of the duties to be performed
3067	3067	under Subsection (b).
3068	3068	(g) The board [No later than December 31, 1999, the
3069	3069	commission] shall maintain a [obtain or develop an updated] water
3070	3070	availability model for each [six] river basin in this state and
3071	3071	shall update the models as the board determines necessary [basins
3072	3072	as determined by the commission. The commission shall obtain or
3073	3073	develop an updated water availability model for all remaining river
3074	3074	basins no later than December 31, 2001].
3075	3075	(h) [Not later than December 31, 2003, the commission shall
3076	3076	obtain or develop an updated water supply model for the Rio Grande.]
3077	3077	Recognizing that the Rio Grande is an international river touching
3078	3078	on three states of the United States and five states of the United
3079	3079	Mexican States and draining an area larger than the State of Texas,
3080	3080	the model for the Rio Grande basin shall encompass to the extent
3081	3081	practicable the significant water demands within the watershed of
3082	3082	the river as well as the unique geology and hydrology of the region.
3083	3083	The board [commission] may collect data from all jurisdictions that
3084	3084	allocate the waters of the river, including jurisdictions outside
3085	3085	this state.
3086	3086	(i) Within 90 days of completing a water availability model
3087	3087	for a river basin, the board [commission] shall provide to all
3088	3088	holders of existing permits, certified filings, and certificates of
3089	3089	adjudication in that river basin the projected amount of water that
3090	3090	would be available during a drought of record, for the subsequent
3091	3091	calendar quarter.
3092	3092	(j) Within 90 days of completing a water availability model
3093	3093	for a river basin, the board [commission] shall provide to each
3094	3094	regional water planning group created under Section 16.053 [of this
3095	3095	code] in that river basin the projected amount of water that would
3096	3096	be available if cancellation procedures were instigated under the
3097	3097	provisions of Subchapter E, Chapter 11[, of this code].
3098	3098	(k) Within 90 days of completing a water availability model
3099	3099	for a river basin, the board [commission], in coordination with the
3100	3100	Parks and Wildlife Department and with input from the Department of
3101	3101	Agriculture and the commission, where appropriate, shall determine
3102	3102	the potential impact of reusing municipal and industrial effluent
3103	3103	on existing water rights, instream uses, and freshwater inflows to
3104	3104	bays and estuaries. Within 30 days of making this determination,
3105	3105	the board [commission] shall provide the projections to the
3106	3106	commission [board] and each regional water planning group created
3107	3107	under Section 16.053 [of this code] in that river basin.
3108	3108	(l) The executive administrator shall obtain or develop
3109	3109	groundwater availability models for major and minor aquifers in
3110	3110	coordination with groundwater management authorities, groundwater
3111	3111	conservation districts, and regional water planning groups created
3112	3112	under Section 16.053 that overlie the aquifers. [Modeling of major
3113	3113	aquifers shall be completed not later than October 1, 2004.] On
3114	3114	completing a groundwater availability model for an aquifer, the
3115	3115	executive administrator shall provide the model to each groundwater
3116	3116	management authority, groundwater conservation district, and each
3117	3117	regional water planning group created under Section 16.053
3118	3118	overlying that aquifer.
3119	3119	(m) The executive administrator may conduct surveys of
3120	3120	entities using groundwater and surface water for municipal,
3121	3121	industrial, power generation, or mining purposes at intervals
3122	3122	determined appropriate by the executive administrator to gather
3123	3123	data to be used for long-term water supply planning. Recipients of
3124	3124	the survey shall complete and return the survey to the executive
3125	3125	administrator. A person who fails to timely complete and return the
3126	3126	survey is not eligible for funding from the board for board programs
3127	3127	and is ineligible to obtain permits, permit amendments, or permit
3128	3128	renewals from the board [commission] under Chapter 11. A person who
3129	3129	fails to complete and return the survey commits an offense that is
3130	3130	punishable as a Class C misdemeanor. This subsection does not apply
3131	3131	to survey information regarding windmills used for domestic and
3132	3132	livestock use.
3133	3133	SECTION 136. Sections 16.053(c), (e), (p), (p-2), (p-3),
3134	3134	and (p-4), Water Code, are amended to read as follows:
3135	3135	(c) No later than 60 days after the designation of the
3136	3136	regions under Subsection (b), the board shall designate
3137	3137	representatives within each regional water planning area to serve
3138	3138	as the initial coordinating body for planning. The initial
3139	3139	coordinating body may then designate additional representatives to
3140	3140	serve on the regional water planning group. The initial
3141	3141	coordinating body shall designate additional representatives if
3142	3142	necessary to ensure adequate representation from the interests
3143	3143	comprising that region, including the public, counties,
3144	3144	municipalities, industries, agricultural interests, environmental
3145	3145	interests, small businesses, electric generating utilities, river
3146	3146	authorities, water districts, and water utilities. The regional
3147	3147	water planning group shall maintain adequate representation from
3148	3148	those interests. In addition, the groundwater conservation
3149	3149	districts located in [each management area, as defined by Section
3150	3150	36.001, located in] the regional water planning area shall appoint
3151	3151	one representative of a groundwater conservation district located
3152	3152	in the [management area and in the] regional water planning area to
3153	3153	serve on the regional water planning group. In addition, one
3154	3154	representative from each groundwater management authority located
3155	3155	in the regional planning group shall serve on the regional planning
3156	3156	group. In addition, representatives of the board, the Parks and
3157	3157	Wildlife Department, the Department of Agriculture, and the State
3158	3158	Soil and Water Conservation Board shall serve as ex officio members
3159	3159	of each regional water planning group.
3160	3160	(e) Each regional water planning group shall submit to the
3161	3161	development board a regional water plan that:
3162	3162	(1) is consistent with the guidance principles for the
3163	3163	state water plan adopted by the development board under Section
3164	3164	16.051(d);
3165	3165	(2) provides information based on data provided or
3166	3166	approved by the development board in a format consistent with the
3167	3167	guidelines provided by the development board under Subsection (d);
3168	3168	(2-a) is consistent with the desired future conditions
3169	3169	adopted under Section 36.108 for the relevant aquifers located in
3170	3170	the regional water planning area as of the most recent deadline for
3171	3171	the board to adopt the state water plan under Section 16.051 or, at
3172	3172	the option of the regional water planning group, established
3173	3173	subsequent to the adoption of the most recent plan; [provided,
3174	3174	however, that if no groundwater conservation district exists within
3175	3175	the area of the regional water planning group, the regional water
3176	3176	planning group shall determine the supply of groundwater for
3177	3177	regional planning purposes; the Texas Water Development Board shall
3178	3178	review and approve, prior to inclusion in the regional water plan,
3179	3179	that the groundwater supply for the regional planning group without
3180	3180	a groundwater conservation district in its area is physically
3181	3181	compatible, using the board's groundwater availability models,
3182	3182	with the desired future conditions adopted under Section 36.108 for
3183	3183	the relevant aquifers in the groundwater management area that are
3184	3184	regulated by groundwater conservation districts;]
3185	3185	(3) identifies:
3186	3186	(A) each source of water supply in the regional
3187	3187	water planning area, including information supplied by the
3188	3188	executive administrator on the amount of modeled available
3189	3189	groundwater in accordance with the guidelines provided by the
3190	3190	development board under Subsections (d) and (f);
3191	3191	(B) factors specific to each source of water
3192	3192	supply to be considered in determining whether to initiate a
3193	3193	drought response;
3194	3194	(C) actions to be taken as part of the response;
3195	3195	and
3196	3196	(D) existing major water infrastructure
3197	3197	facilities that may be used for interconnections in the event of an
3198	3198	emergency shortage of water;
3199	3199	(4) has specific provisions for water management
3200	3200	strategies to be used during a drought of record;
3201	3201	(5) includes but is not limited to consideration of
3202	3202	the following:
3203	3203	(A) any existing water or drought planning
3204	3204	efforts addressing all or a portion of the region and potential
3205	3205	impacts on public health, safety, or welfare in this state;
3206	3206	(B) approved groundwater management authority
3207	3207	[conservation district] management plans and other plans submitted
3208	3208	under Section 16.054;
3209	3209	(C) all potentially feasible water management
3210	3210	strategies, including but not limited to improved conservation,
3211	3211	reuse, and management of existing water supplies, conjunctive use,
3212	3212	acquisition of available existing water supplies, and development
3213	3213	of new water supplies;
3214	3214	(D) protection of existing water rights in the
3215	3215	region;
3216	3216	(E) opportunities for and the benefits of
3217	3217	developing regional water supply facilities or providing regional
3218	3218	management of water supply facilities;
3219	3219	(F) appropriate provision for environmental
3220	3220	water needs and for the effect of upstream development on the bays,
3221	3221	estuaries, and arms of the Gulf of Mexico and the effect of plans on
3222	3222	navigation;
3223	3223	(G) [provisions in Section 11.085(k)(1) if
3224	3224	interbasin transfers are contemplated;
3225	3225	[(H)] voluntary transfer of water within the
3226	3226	region using, but not limited to, regional water banks, sales,
3227	3227	leases, options, subordination agreements, and financing
3228	3228	agreements;
3229	3229	(H) [(I)] emergency transfer of water under
3230	3230	Section 11.139, including information on the part of each permit,
3231	3231	certified filing, or certificate of adjudication for nonmunicipal
3232	3232	use in the region that may be transferred without causing
3233	3233	unreasonable damage to the property of the nonmunicipal water
3234	3234	rights holder; and
3235	3235	(I) [(J)] opportunities for and the benefits of
3236	3236	developing large-scale desalination facilities for:
3237	3237	(i) marine seawater that serve local or
3238	3238	regional entities; and
3239	3239	(ii) seawater or brackish groundwater that
3240	3240	serve local or regional brackish groundwater production zones
3241	3241	identified and designated under Section 16.060(b)(5);
3242	3242	(6) identifies river and stream segments of unique
3243	3243	ecological value and sites of unique value for the construction of
3244	3244	reservoirs that the regional water planning group recommends for
3245	3245	protection under Section 16.051;
3246	3246	(7) assesses the impact of the plan on unique river and
3247	3247	stream segments identified in Subdivision (6) if the regional water
3248	3248	planning group or the legislature determines that a site of unique
3249	3249	ecological value exists;
3250	3250	(8) describes the impact of proposed water projects on
3251	3251	water quality; and
3252	3252	(9) includes information on:
3253	3253	(A) projected water use and conservation in the
3254	3254	regional water planning area; and
3255	3255	(B) the implementation of state and regional
3256	3256	water plan projects, including water conservation strategies,
3257	3257	necessary to meet the state's projected water demands.
3258	3258	(p) If a groundwater management authority [conservation
3259	3259	district] files a petition with the development board stating that
3260	3260	a conflict requiring resolution may exist between the authority's
3261	3261	[district's] approved management plan developed under Section
3262	3262	36.1071 and an approved state water plan, the development board
3263	3263	shall provide technical assistance to and facilitate coordination
3264	3264	between the district and the involved region to resolve the
3265	3265	conflict. Not later than the 45th day after the date the
3266	3266	groundwater management authority [conservation district] files a
3267	3267	petition with the development board, if the conflict has not been
3268	3268	resolved, the authority [district] and the involved region shall
3269	3269	mediate the conflict. The authority [district] and the involved
3270	3270	region may seek the assistance of the Center for Public Policy
3271	3271	Dispute Resolution at The University of Texas School of Law or an
3272	3272	alternative dispute resolution system established under Chapter
3273	3273	152, Civil Practice and Remedies Code, in obtaining a qualified
3274	3274	impartial third party to mediate the conflict. The cost of the
3275	3275	mediation services must be specified in the agreement between the
3276	3276	parties and the Center for Public Policy Dispute Resolution or the
3277	3277	alternative dispute resolution system. If the authority [district]
3278	3278	and the involved region cannot resolve the conflict through
3279	3279	mediation, the development board shall resolve the conflict not
3280	3280	later than the 60th day after the date the mediation is completed as
3281	3281	provided by Subsections (p-1) and (p-2).
3282	3282	(p-2) If the development board determines that resolution
3283	3283	of the conflict requires a revision of the authority's [district's]
3284	3284	approved groundwater conservation [district] management plan, the
3285	3285	development board shall provide information to the authority
3286	3286	[district]. The groundwater management authority [district] shall
3287	3287	prepare any revisions to its plan based on the information provided
3288	3288	by the development board and shall hold, after notice, at least one
3289	3289	public hearing at some central location readily accessible to the
3290	3290	public within the authority [district]. The groundwater management
3291	3291	authority [district] shall consider all public and development
3292	3292	board comments, prepare, revise, and adopt its plan, and submit the
3293	3293	revised plan to the development board.
3294	3294	(p-3) If the groundwater management authority [conservation
3295	3295	district] disagrees with the decision of the development board
3296	3296	under Subsection (p), the authority [district] may appeal the
3297	3297	decision to a district court in Travis County. Costs for the appeal
3298	3298	shall be set by the court hearing the appeal. An appeal under this
3299	3299	subsection is by trial de novo.
3300	3300	(p-4) On the request of the involved region or groundwater
3301	3301	management authority [conservation district], the development
3302	3302	board shall include discussion of the conflict and its resolution
3303	3303	in the state water plan that the development board provides to the
3304	3304	governor, the lieutenant governor, and the speaker of the house of
3305	3305	representatives under Section 16.051(e).
3306	3306	SECTION 137. Section 16.055(j), Water Code, is amended to
3307	3307	read as follows:
3308	3308	(j) The board may enforce a violation of [notify the
3309	3309	commission if the board determines that a person or entity has
3310	3310	violated Subsection (h). Notwithstanding Section 7.051(b), a
3311	3311	violation of] Subsection (h) [is enforceable] in the same manner as
3312	3312	provided by Chapter 7 for the enforcement by the commission of a
3313	3313	violation of a provision of this code within the commission's
3314	3314	jurisdiction or of a rule adopted by the commission under a
3315	3315	provision of this code within the commission's jurisdiction.
3316	3316	SECTION 138. Section 16.059(e), Water Code, is amended to
3317	3317	read as follows:
3318	3318	(e) Results of studies completed under this section shall be
3319	3319	considered by the board [commission] in its review of any
3320	3320	management plan, water right, or interbasin transfer.
3321	3321	SECTION 139. Section 16.196, Water Code, is amended to read
3322	3322	as follows:
3323	3323	Sec. 16.196. PREFERENCES. The board shall give political
3324	3324	subdivisions a preferential right, but not an exclusive right, to
3325	3325	purchase, acquire, or lease facilities and to purchase water from
3326	3326	facilities. Preferences shall be given in these respects in accord
3327	3327	with the provisions of Section 11.123 [of this code] relating to
3328	3328	preferences in the appropriation and use of state water. [The board
3329	3329	and the commission shall coordinate their efforts to meet these
3330	3330	objectives and to assure that the public water of this state, which
3331	3331	is held in trust for the use and benefit of the public, will be
3332	3332	conserved, developed, and utilized in the greatest practicable
3333	3333	measure for the public welfare.]
3334	3334	SECTION 140. Section 16.236(h), Water Code, is amended to
3335	3335	read as follows:
3336	3336	(h) Subsection (a) [of this section] does not apply to:
3337	3337	(1) any dam, reservoir, or canal system associated
3338	3338	with a water right issued or recognized by the board [commission];
3339	3339	(2) dams authorized by Section 11.142 [of this code];
3340	3340	(3) a levee or other improvement within the corporate
3341	3341	limits of a city or town provided: (a) plans for the construction
3342	3342	or maintenance or both must be approved by the city or town as a
3343	3343	condition precedent to starting the project and (b) the city or town
3344	3344	requires that such plans be in substantial compliance with rules
3345	3345	and standards adopted by the commission;
3346	3346	(4) a levee or other improvement within the boundaries
3347	3347	of any political subdivision which has qualified for the National
3348	3348	Flood Insurance Program as authorized by the National Flood
3349	3349	Insurance Act of 1968 (42 U.S.C. [(Title 42, U.S.C.,] Sections
3350	3350	4001-4127) provided: (a) plans for the construction or
3351	3351	maintenance or both must be approved by the political subdivision
3352	3352	which is participating in the national flood insurance program as a
3353	3353	condition precedent to starting the project and (b) the political
3354	3354	subdivision requires that such plans be in substantial compliance
3355	3355	with rules and standards adopted by the commission;
3356	3356	(5) projects implementing soil and water conservation
3357	3357	practices set forth in a conservation plan with a landowner or
3358	3358	operator and approved by the governing board of a soil and water
3359	3359	conservation district organized under Chapter 201, Agriculture
3360	3360	Code [the State Soil Conservation Law, as amended (Article 165a-4,
3361	3361	Vernon's Texas Civil Statutes)], provided that the governing board
3362	3362	finds the practices do not significantly affect stream flooding
3363	3363	conditions on, along, or near a state stream; or
3364	3364	(6) any levee or other improvement constructed outside
3365	3365	of the 100-year floodway. For the purposes of this section,
3366	3366	"100-year floodway" is defined as the channel of a stream and the
3367	3367	adjacent land areas that must be reserved in order to discharge the
3368	3368	100-year flood without cumulatively increasing the water surface
3369	3369	elevation more than one foot above the 100-year flood elevation
3370	3370	prior to encroachment.
3371	3371	SECTION 141. Section 16.237(a), Water Code, is amended to
3372	3372	read as follows:
3373	3373	(a) If a person violates a commission rule or order adopted
3374	3374	under Section 16.236 [of this code], the commission may assess an
3375	3375	administrative penalty against that person in the manner [as]
3376	3376	provided by Section 11.0842 for a violation of a rule or order
3377	3377	adopted under Chapter 11. The penalty may be in an amount not to
3378	3378	exceed $1,000 for each day the person is in violation of the rule or
3379	3379	order. Each day a violation continues may be considered a separate
3380	3380	violation for purposes of penalty assessment [of this code].
3381	3381	SECTION 142. Section 18.001, Water Code, is amended by
3382	3382	amending Subdivision (1) and adding Subdivision (1-a) to read as
3383	3383	follows:
3384	3384	(1) "Board" means the Texas Water Development Board.
3385	3385	(1-a) "Commission" means the Texas Commission on
3386	3386	Environmental Quality.
3387	3387	SECTION 143. Sections 18.003(c), (e), (h), (i), and (j),
3388	3388	Water Code, are amended to read as follows:
3389	3389	(c) A person who diverts and uses state water that consists
3390	3390	of marine seawater under a permit required by Subsection (a) or as
3391	3391	authorized by Subsection (b) must determine the total dissolved
3392	3392	solids concentration of the seawater at the water source by monthly
3393	3393	sampling and analysis and provide the data collected to the board
3394	3394	[commission]. A person may not begin construction of a facility for
3395	3395	the diversion of marine seawater without obtaining a permit until
3396	3396	the person has provided data to the board [commission] based on the
3397	3397	analysis of samples taken at the water source over a period of at
3398	3398	least one year demonstrating that Subsection (a)(2) does not apply.
3399	3399	A person who has begun construction of a facility for the diversion
3400	3400	of marine seawater without obtaining a permit because the person
3401	3401	has demonstrated that Subsection (a)(2) does not apply is not
3402	3402	required to obtain a permit for the facility if the total dissolved
3403	3403	solids concentration of the seawater at the water source
3404	3404	subsequently changes so that Subsection (a)(2) applies.
3405	3405	(e) The board [commission] shall adopt rules providing an
3406	3406	expedited procedure for acting on an application for a permit
3407	3407	required by Subsection (a). The rules must provide for notice, an
3408	3408	opportunity for the submission of written comment, and an
3409	3409	opportunity for a contested case hearing regarding board
3410	3410	[commission] actions relating to an application for a permit.
3411	3411	(h) The board [commission] by rule shall prescribe
3412	3412	reasonable measures to minimize impingement and entrainment.
3413	3413	(i) The Parks and Wildlife Department and the General Land
3414	3414	Office jointly shall conduct a study to identify zones in the Gulf
3415	3415	of Mexico that are appropriate for the diversion of marine
3416	3416	seawater, taking into account the need to protect marine organisms.
3417	3417	Not later than September 1, 2018, the Parks and Wildlife Department
3418	3418	and the General Land Office shall submit a report on the results of
3419	3419	the study to the board [commission]. The report must include
3420	3420	recommended diversion zones for designation by the board
3421	3421	[commission] and recommendations for the number of points from
3422	3422	which, and the rate at which, a facility may divert marine
3423	3423	seawater. Not later than September 1, 2020, the board [commission]
3424	3424	by rule shall designate appropriate diversion zones. A diversion
3425	3425	zone may be contiguous to, be the same as, or overlap a discharge
3426	3426	zone. The point or points from which a facility may divert marine
3427	3427	seawater must be located in a diversion zone designated by the board
3428	3428	[commission] under rules adopted under this subsection if:
3429	3429	(1) the facility is authorized by a permit as required
3430	3430	by Subsection (a) issued after the rules are adopted; or
3431	3431	(2) the facility is exempt under Subsection (b) from
3432	3432	the requirement of a permit and construction of the facility begins
3433	3433	after the rules are adopted.
3434	3434	(j) Until the board [commission] adopts rules under
3435	3435	Subsection (i), a person must consult the Parks and Wildlife
3436	3436	Department and the General Land Office regarding the point or
3437	3437	points from which a facility the person proposes to construct may
3438	3438	divert marine seawater before submitting an application for a
3439	3439	permit for the facility if Subsection (a) applies or before
3440	3440	beginning construction of the facility if Subsection (b) applies.
3441	3441	SECTION 144. Sections 18.004(a) and (b), Water Code, are
3442	3442	amended to read as follows:
3443	3443	(a) With prior authorization granted under rules prescribed
3444	3444	by the board [commission], a person may use the bed and banks of any
3445	3445	flowing natural stream in this state or a lake, reservoir, or other
3446	3446	impoundment in this state to convey marine seawater that has been
3447	3447	treated so as to meet standards that are at least as stringent as
3448	3448	the water quality standards applicable to the receiving stream or
3449	3449	impoundment adopted by the commission.
3450	3450	(b) The board [commission] shall provide for notice and an
3451	3451	opportunity for the submission of written comment but may not
3452	3452	provide an opportunity for a contested case hearing regarding board
3453	3453	[commission] actions relating to an application for an
3454	3454	authorization under this section to use the bed and banks of a
3455	3455	flowing natural stream to convey treated marine seawater. The
3456	3456	board [commission] shall provide for notice, an opportunity for the
3457	3457	submission of written comment, and an opportunity for a contested
3458	3458	case hearing regarding board [commission] actions relating to an
3459	3459	application for an authorization under this section to use a lake,
3460	3460	reservoir, or other impoundment to convey treated marine seawater.
3461	3461	SECTION 145. Section 26.0291(a), Water Code, is amended to
3462	3462	read as follows:
3463	3463	(a) An annual water quality fee is imposed on:
3464	3464	(1) each wastewater discharge permit holder,
3465	3465	including the holder of a permit issued under Section 18.005, for
3466	3466	each wastewater discharge permit held; and
3467	3467	(2) each user of water in proportion to the user's
3468	3468	water right, through permit or contract, as reflected in the
3469	3469	board's [commission's] records, provided that the board
3470	3470	[commission] by rule shall ensure that no fee shall be assessed for
3471	3471	the portion of a municipal or industrial water right directly
3472	3472	associated with a facility or operation for which a fee is assessed
3473	3473	under Subdivision (1) [of this subsection].
3474	3474	SECTION 146. Chapter 35, Water Code, is amended by
3475	3475	designating Sections 35.001 through 35.020 as Subchapter A and
3476	3476	adding a subchapter heading to read as follows:
3477	3477	SUBCHAPTER A. GENERAL PROVISIONS
3478	3478	SECTION 147. Section 35.001, Water Code, is amended to read
3479	3479	as follows:
3480	3480	Sec. 35.001. PURPOSE. In order to provide for the
3481	3481	conservation, preservation, protection, recharging, and prevention
3482	3482	of waste of the groundwater, and of groundwater reservoirs or their
3483	3483	subdivisions, and to control subsidence caused by withdrawal of
3484	3484	water from those groundwater reservoirs or their subdivisions,
3485	3485	consistent with the objectives of Section 59, Article XVI, Texas
3486	3486	Constitution, groundwater management authorities shall [areas may]
3487	3487	be created as provided by this chapter.
3488	3488	SECTION 148. Section 35.002(11), Water Code, is amended to
3489	3489	read as follows:
3490	3490	(11) "Groundwater management authority [Management
3491	3491	area]" means a state agency created under Subchapter B [an area
3492	3492	designated and delineated by the Texas Water Development Board as
3493	3493	an area suitable for management of groundwater resources].
3494	3494	SECTION 149. Section 35.020, Water Code, is amended to read
3495	3495	as follows:
3496	3496	Sec. 35.020. PUBLIC PARTICIPATION IN GROUNDWATER
3497	3497	MANAGEMENT PROCESS. It is the policy of the state to encourage
3498	3498	public participation in the groundwater management process in areas
3499	3499	within a groundwater management authority [area] not represented by
3500	3500	a groundwater conservation district.
3501	3501	SECTION 150. Chapter 35, Water Code, is amended by adding
3502	3502	Subchapter B to read as follows:
3503	3503	SUBCHAPTER B. GROUNDWATER MANAGEMENT AUTHORITIES
3504	3504	Sec. 35.051. POLICY. Groundwater management authorities
3505	3505	are created to assist the Texas Water Development Board in
3506	3506	determining desired future conditions and groundwater availability
3507	3507	of the state's aquifers.
3508	3508	Sec. 35.052. CREATION. The Texas Water Development Board
3509	3509	shall designate a groundwater management authority for each of the
3510	3510	state's major aquifers that the board identifies as having
3511	3511	reasonably accessible groundwater.
3512	3512	Sec. 35.053. DESIRED FUTURE CONDITIONS. A groundwater
3513	3513	management authority shall determine desired future conditions and
3514	3514	groundwater availability for each major aquifer and each minor
3515	3515	aquifer within its territory. If a minor aquifer is within more
3516	3516	than one groundwater management authority territory, the Texas
3517	3517	Water Development Board shall designate one groundwater management
3518	3518	authority to manage the minor aquifer.
3519	3519	Sec. 35.054. BOARD OF DIRECTORS. (a) Each groundwater
3520	3520	management authority shall be governed by a board of seven
3521	3521	directors appointed by the governor, with the advice and consent of
3522	3522	the senate, to serve for six-year staggered terms. Each member of
3523	3523	the board of directors must reside within the groundwater
3524	3524	management authority's territory, and shall be selected from
3525	3525	different geographic areas from within the authority's territory.
3526	3526	(b) A member of the board of directors is entitled to the
3527	3527	same per diem compensation and reimbursement of reasonable travel
3528	3528	expenses as a member of the board of directors of a river authority.
3529	3529	Sec. 35.055. POWERS AND DUTIES. A groundwater management
3530	3530	authority may:
3531	3531	(1) limit groundwater production based on tract size
3532	3532	or the spacing of wells;
3533	3533	(2) conserve, preserve, protect, and recharge
3534	3534	groundwater;
3535	3535	(3) control subsidence;
3536	3536	(4) prevent degradation of water quality; and
3537	3537	(5) prevent waste of groundwater.
3538	3538	Sec. 35.056. RULES. (a) Groundwater management
3539	3539	authorities may adopt such rules as may be necessary to govern their
3540	3540	operations and any duties or powers granted to them in accordance
3541	3541	with Chapter 2001, Government Code.
3542	3542	(b) In adopting a rule under this section, a groundwater
3543	3543	management authority shall:
3544	3544	(1) consider all groundwater uses and needs;
3545	3545	(2) develop rules that are fair and impartial;
3546	3546	(3) consider the groundwater ownership and rights
3547	3547	described by Section 36.002;
3548	3548	(4) consider the public interest in:
3549	3549	(A) conservation, preservation, protection,
3550	3550	recharging, and prevention of waste of groundwater, and of
3551	3551	groundwater reservoirs or their subdivisions; and
3552	3552	(B) controlling subsidence caused by withdrawal
3553	3553	of groundwater from those groundwater reservoirs or their
3554	3554	subdivisions, consistent with the objectives of Section 59, Article
3555	3555	XVI, Texas Constitution;
3556	3556	(5) consider the goals developed as part of the
3557	3557	authority's management plan under Section 36.1071; and
3558	3558	(6) not discriminate between land that is irrigated
3559	3559	for production and land that was irrigated for production and
3560	3560	enrolled or participating in a federal conservation program.
3561	3561	Sec. 35.057. ENFORCEMENT; PENALTIES. (a) A groundwater
3562	3562	management authority may enforce this chapter, Chapter 36, and its
3563	3563	rules against a person by injunction, mandatory injunction, or
3564	3564	other appropriate remedy in a court of competent jurisdiction.
3565	3565	(b) The groundwater management authority's board by rule
3566	3566	may set reasonable civil penalties against a person for breach of
3567	3567	any rule of the authority not to exceed $10,000 per day per
3568	3568	violation, and each day of a continuing violation constitutes a
3569	3569	separate violation.
3570	3570	(c) A penalty under this section is in addition to any other
3571	3571	penalty provided by law and may be enforced against a person by
3572	3572	complaints filed in the appropriate court of jurisdiction in the
3573	3573	county in which the groundwater management authority's principal
3574	3574	office or meeting place is located.
3575	3575	(d) In an enforcement action by a groundwater management
3576	3576	authority against a person that is a governmental entity for a
3577	3577	violation of authority rules, the limits on the amount of fees,
3578	3578	costs, and penalties that an authority may impose under Section
3579	3579	36.122, 36.205, or this section, or under a special law governing a
3580	3580	district operating under Chapter 36, constitute a limit of
3581	3581	liability of the governmental entity for the violation. This
3582	3582	subsection may not be construed to prohibit the recovery by an
3583	3583	authority of fees and costs in an action against any person that is
3584	3584	a governmental entity.
3585	3585	(e) A groundwater management authority may, in its sole
3586	3586	discretion, order the limitation or cessation of groundwater
3587	3587	production for any purpose other than for domestic and livestock
3588	3588	use in order to ensure the aquifer's water volume does not fall
3589	3589	below the minimum water volume established by Section
3590	3590	36.1071(e)(3)(H).
3591	3591	(f) To assist in enforcement efforts, a groundwater
3592	3592	management authority may delegate enforcement authority under this
3593	3593	section to one or more groundwater conservation districts to act on
3594	3594	the authority's behalf under the terms as the authority may
3595	3595	consider appropriate. The authority may rescind or modify the
3596	3596	delegation at any time.
3597	3597	Sec. 35.058. COSTS. (a) The costs of operation of the
3598	3598	groundwater management authorities shall be funded by the Texas
3599	3599	Water Development Board from the fees assessed in Section 12.115.
3600	3600	(b) A groundwater management authority may, by rule, set and
3601	3601	charge other reasonable fees for administrative acts of the
3602	3602	authority, and may use those fees for any purpose of the authority.
3603	3603	Sec. 35.059. CONFLICTS OF LAW. To the extent there is any
3604	3604	conflict between a rule adopted by a groundwater conservation
3605	3605	district and a groundwater management authority, the rules of the
3606	3606	groundwater management authority control.
3607	3607	Sec. 35.060. SUITS. A groundwater management authority may
3608	3608	sue and be sued. A person affected by and dissatisfied with any
3609	3609	rule or order made by an authority, including an appeal of a
3610	3610	decision on a permit application, may file a suit against the
3611	3611	authority to challenge the validity of the law, rule, or order.
3612	3612	Venue is in state district court of Travis County.
3613	3613	Sec. 35.061. MEETINGS. Meetings of the board of directors
3614	3614	shall be governed by Chapter 551, Government Code.
3615	3615	Sec. 35.062. STAFF. The authority's board may hire a
3616	3616	general manager and other staff and outside consultants as
3617	3617	necessary.
3618	3618	SECTION 151. Sections 36.001(29) and (30), Water Code, are
3619	3619	amended to read as follows:
3620	3620	(29) "Groundwater management authority" has the
3621	3621	meaning assigned by Section 35.002 ["Evidence of historic or
3622	3622	existing use" means evidence that is material and relevant to a
3623	3623	determination of the amount of groundwater beneficially used
3624	3624	without waste by a permit applicant during the relevant time period
3625	3625	set by district rule that regulates groundwater based on historic
3626	3626	use. Evidence in the form of oral or written testimony shall be
3627	3627	subject to cross-examination. The Texas Rules of Evidence govern
3628	3628	the admissibility and introduction of evidence of historic or
3629	3629	existing use, except that evidence not admissible under the Texas
3630	3630	Rules of Evidence may be admitted if it is of the type commonly
3631	3631	relied upon by reasonably prudent persons in the conduct of their
3632	3632	affairs].
3633	3633	(30) "Desired future condition" means a quantitative
3634	3634	description, adopted in accordance with Section 36.108, of the
3635	3635	desired condition of the groundwater resources in an aquifer [a
3636	3636	management area] at one or more specified future times.
3637	3637	SECTION 152. Section 36.0015(b), Water Code, is amended to
3638	3638	read as follows:
3639	3639	(b) In order to provide for the conservation, preservation,
3640	3640	protection, recharging, and prevention of waste of groundwater, and
3641	3641	of groundwater reservoirs or their subdivisions, and to control
3642	3642	subsidence caused by withdrawal of water from those groundwater
3643	3643	reservoirs or their subdivisions, consistent with the objectives of
3644	3644	Section 59, Article XVI, Texas Constitution, groundwater
3645	3645	conservation districts may be created as provided by this chapter.
3646	3646	Groundwater management authorities created as provided by Chapter
3647	3647	35 and groundwater conservation districts created as provided by
3648	3648	this chapter are the state's preferred method of groundwater
3649	3649	management in order to protect property rights, balance the
3650	3650	conservation and development of groundwater to meet the needs of
3651	3651	this state, and use the best available science in the conservation
3652	3652	and development of groundwater through rules developed, adopted,
3653	3653	and promulgated by a district in accordance with [the provisions
3654	3654	of] this chapter or by a groundwater management authority in
3655	3655	accordance with Chapter 35 and this chapter.
3656	3656	SECTION 153. Section 36.002(d), Water Code, is amended to
3657	3657	read as follows:
3658	3658	(d) This section does not:
3659	3659	(1) prohibit a district or groundwater management
3660	3660	authority, as applicable, from limiting or prohibiting the drilling
3661	3661	of a well by a landowner for failure or inability to comply with
3662	3662	minimum well spacing or tract size requirements adopted by the
3663	3663	groundwater management authority [district];
3664	3664	(2) affect the ability of a district or groundwater
3665	3665	management authority, as applicable, to regulate groundwater
3666	3666	production as authorized under Section 36.113, 36.116, or 36.122 or
3667	3667	otherwise under this chapter or a special law governing a district;
3668	3668	or
3669	3669	(3) require that a rule adopted by a district or
3670	3670	groundwater management authority, as applicable, allocate to each
3671	3671	landowner a proportionate share of available groundwater for
3672	3672	production from the aquifer based on the number of acres owned by
3673	3673	the landowner.
3674	3674	SECTION 154. Section 36.012(c), Water Code, is amended to
3675	3675	read as follows:
3676	3676	(c) The boundaries of a district must be coterminous with or
3677	3677	inside the boundaries of a groundwater management authority [area]
3678	3678	or a priority groundwater management area.
3679	3679	SECTION 155. Sections 36.015(b), (c), and (f), Water Code,
3680	3680	are amended to read as follows:
3681	3681	(b) The commission may not certify a petition if the
3682	3682	commission finds that the proposed district cannot be adequately
3683	3683	funded to carry out its purposes based on the financial information
3684	3684	provided in the petition under Section 36.013(c)(6) or that the
3685	3685	boundaries of the proposed district do not provide for the
3686	3686	effective management of the groundwater resources. The commission
3687	3687	shall give preference to boundary lines that are coterminous with
3688	3688	those of a groundwater management authority [area] but may also
3689	3689	consider boundaries along existing political subdivision
3690	3690	boundaries if such boundaries would facilitate district creation
3691	3691	and confirmation.
3692	3692	(c) If a petition proposes the creation of a district in an
3693	3693	area, in whole or in part, that has not been designated as a
3694	3694	groundwater management authority [area], the commission shall
3695	3695	provide notice to the Texas Water Development Board. On the receipt
3696	3696	of notice from the commission, the Texas Water Development Board
3697	3697	shall initiate the process of designating or expanding a
3698	3698	groundwater management authority [area] for the area of the
3699	3699	proposed district not included in a management authority [area].
3700	3700	The commission may not certify the petition until the Texas Water
3701	3701	Development Board has adopted a rule whereby the boundaries of the
3702	3702	proposed district are coterminous with or inside the boundaries of
3703	3703	a management authority [area].
3704	3704	(f) Refusal by the commission to certify a petition to
3705	3705	create a district does not invalidate or affect the designation of
3706	3706	any groundwater management authority [area].
3707	3707	SECTION 156. Section 36.063(b), Water Code, is amended to
3708	3708	read as follows:
3709	3709	(b) At least 10 days before a hearing under Section
3710	3710	36.108(d-2) [or a meeting at which a district will adopt a desired
3711	3711	future condition under Section 36.108(d-4)], the board of each
3712	3712	district included in the applicable groundwater management
3713	3713	authority must post notice that includes:
3714	3714	(1) the proposed desired future conditions and a list
3715	3715	of any other agenda items;
3716	3716	(2) the date, time, and location of the meeting or
3717	3717	hearing;
3718	3718	(3) the name, telephone number, and address of the
3719	3719	person to whom questions or requests for additional information may
3720	3720	be submitted;
3721	3721	(4) the names of the other districts in the
3722	3722	groundwater [district's] management authority [area]; and
3723	3723	(5) information on how the public may submit comments.
3724	3724	SECTION 157. Sections 36.101(a) and (a-1), Water Code, are
3725	3725	amended to read as follows:
3726	3726	(a) A district may make and enforce rules, including rules
3727	3727	[limiting groundwater production based on tract size or the spacing
3728	3728	of wells,] to provide for conserving, preserving, protecting, and
3729	3729	recharging of the groundwater or of a groundwater reservoir or its
3730	3730	subdivisions in order to control subsidence, prevent degradation of
3731	3731	water quality, or prevent waste of groundwater and to carry out the
3732	3732	powers and duties provided by this chapter. A district may not
3733	3733	adopt rules regarding the spacing of wells, the withdrawal of water
3734	3734	from wells, or water exports, except fees for water exported from a
3735	3735	district [In adopting a rule under this chapter, a district shall:
3736	3736	[(1) consider all groundwater uses and needs;
3737	3737	[(2) develop rules that are fair and impartial;
3738	3738	[(3) consider the groundwater ownership and rights
3739	3739	described by Section 36.002;
3740	3740	[(4) consider the public interest in conservation,
3741	3741	preservation, protection, recharging, and prevention of waste of
3742	3742	groundwater, and of groundwater reservoirs or their subdivisions,
3743	3743	and in controlling subsidence caused by withdrawal of groundwater
3744	3744	from those groundwater reservoirs or their subdivisions,
3745	3745	consistent with the objectives of Section 59, Article XVI, Texas
3746	3746	Constitution;
3747	3747	[(5) consider the goals developed as part of the
3748	3748	district's management plan under Section 36.1071; and
3749	3749	[(6) not discriminate between land that is irrigated
3750	3750	for production and land that was irrigated for production and
3751	3751	enrolled or participating in a federal conservation program].
3752	3752	(a-1) Any rule of a district or groundwater management
3753	3753	authority that discriminates between land that is irrigated for
3754	3754	production and land that was irrigated for production and enrolled
3755	3755	or participating in a federal conservation program is void.
3756	3756	SECTION 158. Sections 36.105(a), (d), and (e), Water Code,
3757	3757	are amended to read as follows:
3758	3758	(a) A district or groundwater management authority may
3759	3759	exercise the power of eminent domain to acquire by condemnation a
3760	3760	fee simple or other interest in property if that property interest
3761	3761	is:
3762	3762	(1) within the boundaries of the district or
3763	3763	groundwater management authority; and
3764	3764	(2) necessary for conservation purposes, including
3765	3765	monitoring, recharge, and reuse.
3766	3766	(d) In a condemnation proceeding brought by a district or
3767	3767	groundwater management authority, the district or groundwater
3768	3768	management authority is not required to pay in advance or give bond
3769	3769	or other security for costs in the trial court, to give bond for the
3770	3770	issuance of a temporary restraining order or a temporary
3771	3771	injunction, or to give bond for costs or supersedeas on an appeal or
3772	3772	writ of error.
3773	3773	(e) In exercising the power of eminent domain, if the
3774	3774	district or groundwater management authority requires relocating,
3775	3775	raising, lowering, rerouting, changing the grade, or altering the
3776	3776	construction of any railroad, highway, pipeline, or electric
3777	3777	transmission or distribution, telegraph, or telephone lines,
3778	3778	conduits, poles, or facilities, the district or authority must bear
3779	3779	the actual cost of relocating, raising, lowering, rerouting,
3780	3780	changing the grade, or altering the construction to provide
3781	3781	comparable replacement without enhancement of facilities after
3782	3782	deducting the net salvage value derived from the old facility.
3783	3783	SECTION 159. Section 36.106, Water Code, is amended to read
3784	3784	as follows:
3785	3785	Sec. 36.106. SURVEYS. A district or groundwater management
3786	3786	authority may make surveys of the groundwater reservoir or
3787	3787	subdivision and surveys of the facilities in order to determine the
3788	3788	quantity of water available for production and use and to determine
3789	3789	the improvements, development, and recharging needed by a reservoir
3790	3790	or its subdivision.
3791	3791	SECTION 160. Section 36.107, Water Code, is amended to read
3792	3792	as follows:
3793	3793	Sec. 36.107. RESEARCH. A district or groundwater
3794	3794	management authority may carry out any research projects deemed
3795	3795	necessary by its [the] board.
3796	3796	SECTION 161. Section 36.1071, Water Code, is amended to
3797	3797	read as follows:
3798	3798	Sec. 36.1071. MANAGEMENT PLAN. (a) Following notice and
3799	3799	hearing, the groundwater management authority, with the assistance
3800	3800	and input from all districts within the authority's territory
3801	3801	[district] shall, in coordination with surface water management
3802	3802	entities on a regional basis, develop a management plan that
3803	3803	addresses the following management goals, as applicable:
3804	3804	(1) providing the most efficient use of groundwater;
3805	3805	(2) controlling and preventing waste of groundwater;
3806	3806	(3) controlling and preventing subsidence;
3807	3807	(4) addressing conjunctive surface water management
3808	3808	issues;
3809	3809	(5) addressing natural resource issues;
3810	3810	(6) addressing drought conditions;
3811	3811	(7) addressing conservation, recharge enhancement,
3812	3812	rainwater harvesting, precipitation enhancement, or brush control,
3813	3813	where appropriate and cost-effective; and
3814	3814	(8) addressing the desired future conditions adopted
3815	3815	[by the district] under Section 36.108.
3816	3816	(b) The management plan, or any amendments to the plan,
3817	3817	shall be developed using the groundwater management authority's
3818	3818	[district's] best available data and forwarded to the regional
3819	3819	water planning group for use in their planning process.
3820	3820	(c) The commission and the Texas Water Development Board
3821	3821	shall provide technical assistance [to a district] in the
3822	3822	development of the management plan required under Subsection (a)
3823	3823	which may include, if requested by the groundwater management
3824	3824	authority [district], a preliminary review and comment on the plan
3825	3825	prior to final approval by the groundwater management authority
3826	3826	[board]. If such review and comment by the commission is requested,
3827	3827	the commission shall provide comment not later than 30 days from the
3828	3828	date the request is received.
3829	3829	(d) The commission and the Texas Water Development Board
3830	3830	shall provide technical assistance to a district or groundwater
3831	3831	management authority during its initial operational phase. If
3832	3832	requested by a district or a groundwater management authority, the
3833	3833	Texas Water Development Board shall provide training [train the
3834	3834	district] on basic data collection methodology and provide
3835	3835	technical assistance [to districts].
3836	3836	(e) In the management plan described under Subsection (a),
3837	3837	the groundwater management authority [district] shall:
3838	3838	(1) identify the performance standards and management
3839	3839	objectives under which the groundwater management authority
3840	3840	[district] will operate to achieve the management goals identified
3841	3841	under Subsection (a);
3842	3842	(2) specify, in as much detail as possible, the
3843	3843	actions, procedures, performance, and avoidance that are or may be
3844	3844	necessary to effect the plan, including specifications and proposed
3845	3845	rules;
3846	3846	(3) include estimates of the following:
3847	3847	(A) modeled available groundwater in the
3848	3848	groundwater management authority [district] based on the desired
3849	3849	future condition established under Section 36.108;
3850	3850	(B) the amount of groundwater being used within
3851	3851	the groundwater management authority [district] on an annual basis;
3852	3852	(C) the annual amount of recharge from
3853	3853	precipitation, if any, to the groundwater resources within the
3854	3854	groundwater management authority [district];
3855	3855	(D) for each aquifer, the annual volume of water
3856	3856	that discharges from the aquifer to springs and any surface water
3857	3857	bodies, including lakes, streams, and rivers;
3858	3858	(E) the annual volume of flow into and out of the
3859	3859	groundwater management authority [district] within each aquifer
3860	3860	and between aquifers in the groundwater management authority
3861	3861	[district], if a groundwater availability model is available;
3862	3862	(F) the projected surface water supply in the
3863	3863	groundwater management authority [district] according to the most
3864	3864	recently adopted state water plan or water availability model;
3865	3865	[and]
3866	3866	(G) the projected total demand for water in the
3867	3867	groundwater management authority [district] according to the most
3868	3868	recently adopted state water plan; and
3869	3869	(H) the minimum amount of groundwater necessary
3870	3870	to sustain six months of domestic and livestock use during the most
3871	3871	recent drought of record; and
3872	3872	(4) consider the water supply needs and water
3873	3873	management strategies included in the adopted state water plan.
3874	3874	(f) The groundwater management authority [district] shall
3875	3875	adopt rules necessary to implement the management plan. Prior to
3876	3876	the development of the management plan and its approval under
3877	3877	Section 36.1072, the groundwater management authority or district
3878	3878	may not adopt rules other than rules pertaining to the registration
3879	3879	and interim permitting of new and existing wells and rules
3880	3880	governing spacing and procedure before the groundwater management
3881	3881	authority's or district's board; however, the groundwater
3882	3882	management authority [district] may not adopt any rules limiting
3883	3883	the production of wells, except rules requiring that groundwater
3884	3884	produced from a well be put to a nonwasteful, beneficial use. The
3885	3885	district or groundwater management authority may accept
3886	3886	applications for permits under Section 36.113, provided the
3887	3887	district or groundwater management authority does not act on any
3888	3888	such application until the groundwater management authority's
3889	3889	[district's] management plan is approved as provided in Section
3890	3890	36.1072.
3891	3891	(g) The groundwater management authority [district] shall
3892	3892	adopt amendments to the management plan as necessary. Amendments
3893	3893	to the management plan shall be adopted after notice and hearing and
3894	3894	shall otherwise comply with the requirements of this section.
3895	3895	(h) In developing its management plan, the groundwater
3896	3896	management authority [district] shall use the groundwater
3897	3897	availability modeling information provided by the executive
3898	3898	administrator together with any available site-specific
3899	3899	information that has been provided by the district or groundwater
3900	3900	management authority to the executive administrator for review and
3901	3901	comment before being used in the plan.
3902	3902	(i) The data determined in this section and placed in the
3903	3903	final groundwater management plan is not subject to challenge in
3904	3904	court in any collateral legal action.
3905	3905	SECTION 162. Sections 36.1072(a-1), (b), (c), (e), (f), and
3906	3906	(g), Water Code, are amended to read as follows:
3907	3907	(a-1) A groundwater management authority [district] shall,
3908	3908	not later than September 1, 2022 [three years after the creation of
3909	3909	the district or, if the district required confirmation, not later
3910	3910	than three years after the election confirming the district's
3911	3911	creation], submit the management plan required under Section
3912	3912	36.1071 to the executive administrator for review and approval.
3913	3913	(b) Within 60 days of receipt of a [district's] management
3914	3914	plan adopted under Section 36.1071, readopted under Subsection (e)
3915	3915	or (g) [of this section], or amended under Section 36.1073, the
3916	3916	executive administrator shall approve the [district's] plan if the
3917	3917	plan is administratively complete. A management plan is
3918	3918	administratively complete when it contains the information
3919	3919	required to be submitted under Section 36.1071(a) and (e). The
3920	3920	executive administrator may determine whether conditions justify
3921	3921	waiver of the requirements under Section 36.1071(e)(4).
3922	3922	(c) Once the executive administrator has approved a
3923	3923	[district's] management plan:
3924	3924	(1) the executive administrator may not revoke but may
3925	3925	require revisions to the approved management plan as provided by
3926	3926	Subsection (g); and
3927	3927	(2) the executive administrator may request
3928	3928	additional information from the groundwater management authority
3929	3929	[district] if the information is necessary to clarify, modify, or
3930	3930	supplement previously submitted material, but a request for
3931	3931	additional information does not render the management plan
3932	3932	unapproved.
3933	3933	(e) The groundwater management authority [district] may
3934	3934	review the plan annually and must review and readopt the plan with
3935	3935	or without revisions at least once every five years. The
3936	3936	groundwater management authority [district] shall provide the
3937	3937	readopted plan to the executive administrator not later than the
3938	3938	60th day after the date on which the plan was readopted. Approval
3939	3939	of the preceding management plan remains in effect until:
3940	3940	(1) the groundwater management authority [district]
3941	3941	fails to timely readopt a management plan;
3942	3942	(2) the groundwater management authority [district]
3943	3943	fails to timely submit the groundwater management authority's
3944	3944	[district's] readopted management plan to the executive
3945	3945	administrator; or
3946	3946	(3) the executive administrator determines that the
3947	3947	readopted management plan does not meet the requirements for
3948	3948	approval, and the groundwater management authority [district] has
3949	3949	exhausted all appeals to the Texas Water Development Board [or
3950	3950	appropriate court].
3951	3951	(f) If the executive administrator does not approve the
3952	3952	groundwater management authority's [district's] management plan,
3953	3953	the executive administrator shall provide to the groundwater
3954	3954	management authority [district], in writing, the reasons for the
3955	3955	action. Not later than the 180th day after the date a groundwater
3956	3956	management authority [district] receives notice that its
3957	3957	management plan has not been approved, the groundwater management
3958	3958	authority [district] may submit a revised management plan for
3959	3959	review and approval. The executive administrator's decision may be
3960	3960	appealed to the development board. [If the development board
3961	3961	decides not to approve the district's management plan on appeal,
3962	3962	the district may request that the conflict be mediated. The
3963	3963	district and the board may seek the assistance of the Center for
3964	3964	Public Policy Dispute Resolution at The University of Texas School
3965	3965	of Law or an alternative dispute resolution system established
3966	3966	under Chapter 152, Civil Practice and Remedies Code, in obtaining a
3967	3967	qualified impartial third party to mediate the conflict. The cost
3968	3968	of the mediation services must be specified in the agreement
3969	3969	between the parties and the Center for Public Policy Dispute
3970	3970	Resolution or the alternative dispute resolution system. If the
3971	3971	parties do not resolve the conflict through mediation, the decision
3972	3972	of the development board not to approve the district's management
3973	3973	plan may be appealed to a district court in Travis County. Costs
3974	3974	for the appeal shall be set by the court hearing the appeal. An
3975	3975	appeal under this subsection is by trial de novo. The commission
3976	3976	shall not take enforcement action against a district under
3977	3977	Subchapter I until the latest of the expiration of the 180-day
3978	3978	period, the date the development board has taken final action
3979	3979	withholding approval of a revised management plan, the date the
3980	3980	mediation is completed, or the date a final judgment upholding the
3981	3981	board's decision is entered by a district court. An enforcement
3982	3982	action may not be taken against a district by the commission or the
3983	3983	state auditor under Subchapter I because the district's management
3984	3984	plan and the approved regional water plan are in conflict while the
3985	3985	parties are attempting to resolve the conflict before the
3986	3986	development board, in mediation, or in court. Rules of the district
3987	3987	continue in full force and effect until all appeals under this
3988	3988	subsection have been exhausted and the final judgment is adverse to
3989	3989	the district.]
3990	3990	(g) A person with a legally defined interest in groundwater
3991	3991	in a groundwater management authority [district], or the regional
3992	3992	water planning group, may file a petition with the development
3993	3993	board stating that a conflict requiring resolution may exist
3994	3994	between the authority's [district's] approved management plan
3995	3995	developed under Section 36.1071 and the state water plan. If a
3996	3996	conflict exists, the development board shall provide technical
3997	3997	assistance to and facilitate coordination between the involved
3998	3998	person or regional water planning group and the groundwater
3999	3999	management authority [district] to resolve the conflict. Not later
4000	4000	than the 45th day after the date the person or the regional water
4001	4001	planning group files a petition with the development board, if the
4002	4002	conflict has not been resolved, the groundwater management
4003	4003	authority [district] and the involved person or regional planning
4004	4004	group may petition the executive administrator to resolve [mediate]
4005	4005	the conflict. The [district and the involved person or regional
4006	4006	planning group may seek the assistance of the Center for Public
4007	4007	Policy Dispute Resolution at The University of Texas School of Law
4008	4008	or an alternative dispute resolution system established under
4009	4009	Chapter 152, Civil Practice and Remedies Code, in obtaining a
4010	4010	qualified impartial third party to mediate the conflict. The cost
4011	4011	of the mediation services must be specified in the agreement
4012	4012	between the parties and the Center for Public Policy Dispute
4013	4013	Resolution or the alternative dispute resolution system. If the
4014	4014	district and the involved person or regional planning group cannot
4015	4015	resolve the conflict through mediation, the] development board
4016	4016	shall resolve the conflict not later than the 60th day after the
4017	4017	date the petition is received [mediation is completed]. The
4018	4018	development board action under this provision may be consolidated,
4019	4019	at the option of the development board, with related action under
4020	4020	Section 16.053(p). If the development board determines that
4021	4021	resolution of the conflict requires a revision of the approved
4022	4022	management plan, the development board shall provide information to
4023	4023	the groundwater management authority [district]. The groundwater
4024	4024	management authority [district] shall prepare any revisions to the
4025	4025	plan based on the information provided by the development board and
4026	4026	shall hold, after notice, at least one public hearing at some
4027	4027	central location within the groundwater management authority
4028	4028	[district]. The groundwater management authority [district] shall
4029	4029	consider all public and development board comments, prepare,
4030	4030	revise, and adopt its management plan, and submit the revised
4031	4031	management plan to the development board for approval. On the
4032	4032	request of the groundwater management authority [district] or the
4033	4033	regional water planning group, the development board shall include
4034	4034	discussion of the conflict and its resolution in the state water
4035	4035	plan that the development board provides to the governor, the
4036	4036	lieutenant governor, and the speaker of the house of
4037	4037	representatives under Section 16.051(e). [If the groundwater
4038	4038	conservation district disagrees with the decision of the
4039	4039	development board under this subsection, the district may appeal
4040	4040	the decision to a district court in Travis County. Costs for the
4041	4041	appeal shall be set by the court hearing the appeal. An appeal
4042	4042	under this subsection is by trial de novo.]
4043	4043	SECTION 163. Section 36.1073, Water Code, is amended to
4044	4044	read as follows:
4045	4045	Sec. 36.1073. AMENDMENT TO MANAGEMENT PLAN. Any amendment
4046	4046	to the management plan shall be submitted to the executive
4047	4047	administrator within 60 days following adoption of the amendment by
4048	4048	the groundwater management authority's [district's] board. The
4049	4049	executive administrator shall review and approve any amendment
4050	4050	which substantially affects the management plan in accordance with
4051	4051	the procedures established under Section 36.1072.
4052	4052	SECTION 164. The heading to Section 36.108, Water Code, is
4053	4053	amended to read as follows:
4054	4054	Sec. 36.108. JOINT PLANNING IN GROUNDWATER MANAGEMENT
4055	4055	AUTHORITY [AREA].
4056	4056	SECTION 165. Sections 36.108(a), (b), (c), (d), (d-1),
4057	4057	(d-2), (d-3), (e), and (e-2), Water Code, are amended to read as
4058	4058	follows:
4059	4059	(a) In this section:
4060	4060	(1) "Development board" means the Texas Water
4061	4061	Development Board.
4062	4062	(2) "District representative" means the presiding
4063	4063	officer or the presiding officer's designee for any district
4064	4064	located wholly or partly in the groundwater management authority's
4065	4065	boundaries [area].
4066	4066	(b) If two or more districts are located within the
4067	4067	boundaries of the same groundwater management authority [area],
4068	4068	each district shall cooperate with and provide any data requested
4069	4069	by the groundwater management authority, and the authority shall
4070	4070	consider the input and recommendations from each district in
4071	4071	developing its management plan [forward a copy of that district's
4072	4072	new or revised management plan to the other districts in the
4073	4073	management area. The boards of the districts shall consider the
4074	4074	plans individually and shall compare them to other management plans
4075	4075	then in force in the management area].
4076	4076	(c) The district representatives shall meet at least
4077	4077	annually to conduct joint planning with the groundwater management
4078	4078	authority in which the districts are located [other districts in
4079	4079	the management area] and to review the management plans, the
4080	4080	accomplishments of the groundwater management authority [area],
4081	4081	and proposals to adopt new or amend existing desired future
4082	4082	conditions. In reviewing the management plans, the districts and
4083	4083	groundwater management authority shall consider:
4084	4084	(1) the goals of the [each] management plan and its
4085	4085	impact on planning throughout the groundwater management authority
4086	4086	[area];
4087	4087	(2) the effectiveness of the measures established by
4088	4088	the [each district's] management plan for conserving and protecting
4089	4089	groundwater and preventing waste, and the effectiveness of these
4090	4090	measures in the groundwater management authority [area] generally;
4091	4091	(3) any other matters that the boards of the districts
4092	4092	and the groundwater management authority consider relevant to the
4093	4093	protection and conservation of groundwater and the prevention of
4094	4094	waste in the groundwater management authority area; and
4095	4095	(4) the degree to which each management plan achieves
4096	4096	the desired future conditions established during the joint planning
4097	4097	process.
4098	4098	(d) Not later than May 1, 2021, and every five years
4099	4099	thereafter, the districts and groundwater management authority
4100	4100	shall consider groundwater availability models and other data or
4101	4101	information for the groundwater management authority [area] and
4102	4102	shall propose for adoption desired future conditions for the
4103	4103	relevant aquifers within the groundwater management authority
4104	4104	[area]. Before voting on the proposed desired future conditions of
4105	4105	the aquifers under Subsection (d-3) [(d-2)], the groundwater
4106	4106	management authority [districts] shall consider:
4107	4107	(1) aquifer uses or conditions within the groundwater
4108	4108	management authority [area], including conditions that differ
4109	4109	substantially from one geographic area to another;
4110	4110	(2) the water supply needs and water management
4111	4111	strategies included in the state water plan;
4112	4112	(3) hydrological conditions, including for each
4113	4113	aquifer in the groundwater management authority [area] the total
4114	4114	estimated recoverable storage as provided by the executive
4115	4115	administrator, and the average annual recharge, inflows, and
4116	4116	discharge;
4117	4117	(4) other environmental impacts, including impacts on
4118	4118	spring flow and other interactions between groundwater and surface
4119	4119	water;
4120	4120	(5) the impact on subsidence;
4121	4121	(6) socioeconomic impacts reasonably expected to
4122	4122	occur;
4123	4123	(7) the impact on the interests and rights in private
4124	4124	property, including ownership and the rights of landowners within
4125	4125	the groundwater management authority [area landowners] and their
4126	4126	lessees and assigns in groundwater as recognized under Section
4127	4127	36.002;
4128	4128	(8) the feasibility of achieving the desired future
4129	4129	condition; and
4130	4130	(9) any other information relevant to the specific
4131	4131	desired future conditions.
4132	4132	(d-1) After considering and documenting the factors
4133	4133	described by Subsection (d) and other relevant scientific and
4134	4134	hydrogeological data, the groundwater management authority, with
4135	4135	the input and assistance of the districts, may establish different
4136	4136	desired future conditions for:
4137	4137	(1) each aquifer, subdivision of an aquifer, or
4138	4138	geologic strata located in whole or in part within the boundaries of
4139	4139	the groundwater management authority [area]; or
4140	4140	(2) each geographic area overlying an aquifer in whole
4141	4141	or in part or subdivision of an aquifer within the boundaries of the
4142	4142	groundwater management authority [area].
4143	4143	(d-2) The desired future conditions proposed under
4144	4144	Subsection (d) must provide a balance between the highest
4145	4145	practicable level of groundwater production and the conservation,
4146	4146	preservation, protection, recharging, and prevention of waste of
4147	4147	groundwater and control of subsidence in the groundwater management
4148	4148	authority [area]. This subsection does not prohibit the
4149	4149	establishment of desired future conditions that provide for the
4150	4150	reasonable long-term management of groundwater resources
4151	4151	consistent with the management goals under Section 36.1071(a).
4152	4152	[The desired future conditions proposed under Subsection (d) must
4153	4153	be approved by a two-thirds vote of all the district
4154	4154	representatives for distribution to the districts in the management
4155	4155	area.] A period of not less than 90 days for public comments begins
4156	4156	on the day the proposed desired future conditions are adopted by the
4157	4157	groundwater management authority's board of directors [mailed to
4158	4158	the districts]. During the public comment period and after posting
4159	4159	notice as required by Section 36.063, the groundwater management
4160	4160	authority [each district] shall hold a public hearing on any
4161	4161	proposed desired future conditions [relevant to that district].
4162	4162	During the public comment period, the groundwater management
4163	4163	authority [district] shall make available in its office a copy of
4164	4164	the proposed desired future conditions and any supporting
4165	4165	materials, such as the documentation of factors considered under
4166	4166	Subsection (d) and groundwater availability model run results.
4167	4167	After the close of the public comment period, the groundwater
4168	4168	management authority [district] shall compile for consideration at
4169	4169	the next groundwater management authority board [joint planning]
4170	4170	meeting, and shall provide a copy to each district within its
4171	4171	boundaries, a summary of relevant comments received, any suggested
4172	4172	revisions to the proposed desired future conditions, and the basis
4173	4173	for the revisions. Not later than the 30th day after the date the
4174	4174	groundwater management authority sends the documents described by
4175	4175	this subsection to the districts, the districts shall provide
4176	4176	written comments to the groundwater management authority.
4177	4177	(d-3) After all the districts have submitted their comments
4178	4178	[district summaries], the groundwater management authority board
4179	4179	[district representatives] shall:
4180	4180	(1) meet [reconvene] to review the reports, consider
4181	4181	any district's suggested revisions to the proposed desired future
4182	4182	conditions, and finally adopt the desired future conditions for the
4183	4183	groundwater management authority; and
4184	4184	(2) [area. The desired future conditions must be
4185	4185	approved by a resolution adopted by a two-thirds vote of all the
4186	4186	district representatives not later than January 5,
4187	4187	2022. Subsequent desired future conditions must be proposed and
4188	4188	finally adopted by the district representatives before the end of
4189	4189	each successive five-year period after that date. The district
4190	4190	representatives shall] produce a desired future conditions
4191	4191	explanatory report for the groundwater management authority [area]
4192	4192	and submit to the development board [and each district in the
4193	4193	management area proof that notice was posted for the joint planning
4194	4194	meeting,] a copy of the resolution[,] and a copy of the explanatory
4195	4195	report, which [. The report] must:
4196	4196	(A) [(1)] identify each desired future
4197	4197	condition;
4198	4198	(B) [(2)] provide the policy and technical
4199	4199	justifications for each desired future condition;
4200	4200	(C) [(3)] include documentation that the factors
4201	4201	under Subsection (d) were considered by the groundwater management
4202	4202	authority [districts] and a discussion of how the adopted desired
4203	4203	future conditions impact each factor;
4204	4204	(D) [(4)] list other desired future condition
4205	4205	options considered, if any, and the reasons why those options were
4206	4206	not adopted; and
4207	4207	(E) [(5)] discuss reasons why recommendations
4208	4208	made by advisory committees and relevant public comments received
4209	4209	by the groundwater management authority [districts] were or were
4210	4210	not incorporated into the desired future conditions.
4211	4211	(e) Except as provided by this section, a joint meeting
4212	4212	under this section must be held in accordance with Chapter 551,
4213	4213	Government Code. Each district shall comply with Chapter 552,
4214	4214	Government Code. The district representatives may elect one
4215	4215	district to be responsible for providing the notice of a joint
4216	4216	meeting that this section would otherwise require of each district
4217	4217	in the groundwater management authority [area]. Notice of a joint
4218	4218	meeting must be provided at least 10 days before the date of the
4219	4219	meeting by:
4220	4220	(1) providing notice to the secretary of state;
4221	4221	(2) providing notice to the county clerk of each
4222	4222	county located wholly or partly in a district that is located wholly
4223	4223	or partly in the groundwater management authority [area]; and
4224	4224	(3) posting notice at a place readily accessible to
4225	4225	the public at the district office of each district located wholly or
4226	4226	partly in the groundwater management authority's boundaries, and in
4227	4227	the groundwater management authority office [area].
4228	4228	(e-2) Notice of a joint meeting must include:
4229	4229	(1) the date, time, and location of the meeting;
4230	4230	(2) a summary of any action proposed to be taken;
4231	4231	(3) the name of the groundwater management authority
4232	4232	and each district located wholly or partly in the groundwater
4233	4233	management authority [area]; and
4234	4234	(4) the name, telephone number, and address of one or
4235	4235	more persons to whom questions, requests for additional
4236	4236	information, or comments may be submitted.
4237	4237	SECTION 166. Section 36.1081(b), Water Code, is amended to
4238	4238	read as follows:
4239	4239	(b) During the joint planning process under Section 36.108,
4240	4240	the district representatives or groundwater management authority
4241	4241	may appoint and convene nonvoting advisory subcommittees who
4242	4242	represent social, governmental, environmental, or economic
4243	4243	interests to assist in the development of desired future
4244	4244	conditions.
4245	4245	SECTION 167. Sections 36.1083(b), (e), (h), (j), (k), (m),
4246	4246	(n), (o), and (p), Water Code, are amended to read as follows:
4247	4247	(b) Not later than the 120th day after the date on which a
4248	4248	groundwater management authority [district] adopts a desired
4249	4249	future condition [under Section 36.108(d-4)], an affected person
4250	4250	may file a petition with the groundwater management authority
4251	4251	[district] requiring that the groundwater management authority
4252	4252	[district] contract with the office to conduct a hearing appealing
4253	4253	the reasonableness of the desired future condition. The petition
4254	4254	must provide evidence that the groundwater management authority
4255	4255	[districts] did not establish a reasonable desired future condition
4256	4256	of the groundwater resources in the groundwater management
4257	4257	authority's boundaries [area].
4258	4258	(e) Not later than the 10th day after receiving a petition
4259	4259	described by Subsection (b), the groundwater management authority
4260	4260	[district] shall submit a copy of the petition to the development
4261	4261	board. On receipt of the petition, the development board shall
4262	4262	conduct:
4263	4263	(1) an administrative review to determine whether the
4264	4264	desired future condition established by the groundwater management
4265	4265	authority [district] meets the criteria in Section 36.108(d); and
4266	4266	(2) a study containing scientific and technical
4267	4267	analysis of the desired future condition, including consideration
4268	4268	of:
4269	4269	(A) the hydrogeology of the aquifer;
4270	4270	(B) the explanatory report provided to the
4271	4271	development board under Section 36.108(d-3);
4272	4272	(C) the factors described under Section
4273	4273	36.108(d); and
4274	4274	(D) any relevant:
4275	4275	(i) groundwater availability models;
4276	4276	(ii) published studies;
4277	4277	(iii) estimates of total recoverable
4278	4278	storage capacity;
4279	4279	(iv) average annual amounts of recharge,
4280	4280	inflows, and discharge of groundwater; or
4281	4281	(v) information provided in the petition or
4282	4282	available to the development board.
4283	4283	(h) Not later than the 60th day after receiving a petition
4284	4284	under Subsection (b), the groundwater management authority
4285	4285	[district] shall:
4286	4286	(1) contract with the office to conduct the contested
4287	4287	case hearing requested under Subsection (b); and
4288	4288	(2) submit to the office a copy of any petitions
4289	4289	related to the hearing requested under Subsection (b) and received
4290	4290	by the groundwater management authority [district].
4291	4291	(j) During the period between the filing of the petition and
4292	4292	the delivery of the study described by Subsection (e)(2), the
4293	4293	groundwater management authority [district] may seek the
4294	4294	assistance of the Center for Public Policy Dispute Resolution, the
4295	4295	development board, or another alternative dispute resolution
4296	4296	system to mediate the issues raised in the petition. If the
4297	4297	groundwater management authority [district] and the petitioner
4298	4298	cannot resolve the issues raised in the petition, the office will
4299	4299	proceed with a hearing as described by this section.
4300	4300	(k) The groundwater management authority [district] may
4301	4301	adopt rules for notice and hearings conducted under this section
4302	4302	that are consistent with the procedural rules of the office. In
4303	4303	accordance with rules adopted by the groundwater management
4304	4304	authority [district] and the office, the groundwater management
4305	4305	authority [district] shall provide:
4306	4306	(1) general notice of the hearing; and
4307	4307	(2) individual notice of the hearing to:
4308	4308	(A) the petitioner;
4309	4309	(B) any person who has requested notice;
4310	4310	(C) each [nonparty] district and regional water
4311	4311	planning group located in the same groundwater management authority
4312	4312	[management area as a district] named in the petition; and
4313	4313	(D) the development board[; and
4314	4314	[(E) the commission].
4315	4315	(m) The petitioner shall pay the costs associated with the
4316	4316	contract for the hearing under this section. The petitioner shall
4317	4317	deposit with the groundwater management authority [district] an
4318	4318	amount sufficient to pay the contract amount before the hearing
4319	4319	begins. After the hearing, the office may assess costs to one or
4320	4320	more of the parties participating in the hearing and the
4321	4321	groundwater management authority [district] shall refund any
4322	4322	excess money to the petitioner. The office shall consider the
4323	4323	following in apportioning costs of the hearing:
4324	4324	(1) the party who requested the hearing;
4325	4325	(2) the party who prevailed in the hearing;
4326	4326	(3) the financial ability of the party to pay the
4327	4327	costs;
4328	4328	(4) the extent to which the party participated in the
4329	4329	hearing; and
4330	4330	(5) any other factor relevant to a just and reasonable
4331	4331	assessment of costs.
4332	4332	(n) On receipt of the administrative law judge's findings of
4333	4333	fact and conclusions of law in a proposal for decision, including a
4334	4334	dismissal of a petition, the groundwater management authority
4335	4335	[district] shall issue a final order stating the groundwater
4336	4336	management authority's [district's] decision on the contested
4337	4337	matter and the groundwater management authority's [district's]
4338	4338	findings of fact and conclusions of law. The groundwater
4339	4339	management authority [district] may change a finding of fact or
4340	4340	conclusion of law made by the administrative law judge, or may
4341	4341	vacate or modify an order issued by the administrative law judge, as
4342	4342	provided by Section 2001.058(e), Government Code.
4343	4343	(o) If the groundwater management authority [district]
4344	4344	vacates or modifies the proposal for decision, the groundwater
4345	4345	management authority [district] shall issue a report describing in
4346	4346	detail the groundwater management authority's [district's] reasons
4347	4347	for disagreement with the administrative law judge's findings of
4348	4348	fact and conclusions of law. The report shall provide the policy,
4349	4349	scientific, and technical justifications for the groundwater
4350	4350	management authority's [district's] decision.
4351	4351	(p) If the groundwater management authority [district] in
4352	4352	its final order finds that a desired future condition is
4353	4353	unreasonable, not later than the 60th day after the date of the
4354	4354	final order, the authority [districts in the same management area
4355	4355	as the district that received the petition shall reconvene in a
4356	4356	joint planning meeting for the purpose of revising the desired
4357	4357	future condition. The districts in the management area] shall
4358	4358	follow the procedures in Section 36.108 to adopt new desired future
4359	4359	conditions [applicable to the district that received the petition].
4360	4360	SECTION 168. Section 36.10835(a), Water Code, is amended to
4361	4361	read as follows:
4362	4362	(a) A final groundwater management authority [district]
4363	4363	order issued under Section 36.1083 may be appealed to a district
4364	4364	court with jurisdiction over any part of the territory of the
4365	4365	groundwater management authority [district] that issued the order.
4366	4366	An appeal under this subsection must be filed with the district
4367	4367	court not later than the 45th day after the date the groundwater
4368	4368	management authority [district] issues the final order. The case
4369	4369	shall be decided under the substantial evidence standard of review
4370	4370	as provided by Section 2001.174, Government Code. If the court
4371	4371	finds that a desired future condition is unreasonable, the court
4372	4372	shall strike the desired future condition and order the groundwater
4373	4373	management authority's board [districts in the same management area
4374	4374	as the district that received the petition] to reconvene not later
4375	4375	than the 60th day after the date of the court order to revise [in a
4376	4376	joint planning meeting for the purpose of revising] the desired
4377	4377	future condition. [The districts in the management area shall
4378	4378	follow the procedures in Section 36.108 to adopt new desired future
4379	4379	conditions applicable to the district that received the petition.]
4380	4380	SECTION 169. Section 36.1084, Water Code, is amended to
4381	4381	read as follows:
4382	4382	Sec. 36.1084. MODELED AVAILABLE GROUNDWATER. (a) The
4383	4383	Texas Water Development Board shall require each groundwater
4384	4384	management authority [the districts in a management area] to submit
4385	4385	to the executive administrator not later than the 60th day after the
4386	4386	date on which the groundwater management authority [districts]
4387	4387	adopted desired future conditions under Section 36.108(d-3):
4388	4388	(1) the desired future conditions adopted under
4389	4389	Section 36.108;
4390	4390	(2) proof that notice was posted for the joint
4391	4391	planning meeting; and
4392	4392	(3) the desired future conditions explanatory report.
4393	4393	(b) The executive administrator shall provide each
4394	4394	groundwater management authority, district and regional water
4395	4395	planning group located wholly or partly in the groundwater
4396	4396	management authority territory [area] with the modeled available
4397	4397	groundwater in the groundwater management authority [area] based
4398	4398	upon the desired future conditions adopted by the groundwater
4399	4399	management authority [districts].
4400	4400	SECTION 170. Section 36.1085, Water Code, is amended to
4401	4401	read as follows:
4402	4402	Sec. 36.1085. MANAGEMENT PLAN GOALS AND OBJECTIVES. Each
4403	4403	groundwater management authority [district in the management area]
4404	4404	shall ensure that its management plan contains goals and objectives
4405	4405	consistent with achieving the desired future conditions of the
4406	4406	relevant aquifers [as adopted during the joint planning process].
4407	4407	SECTION 171. Section 36.1086, Water Code, is amended to
4408	4408	read as follows:
4409	4409	Sec. 36.1086. JOINT EFFORTS BY DISTRICTS [IN A MANAGEMENT
4410	4410	AREA]. Districts located within the same groundwater management
4411	4411	authority territory [areas] or in adjacent groundwater management
4412	4412	authority territories [areas] may contract [to] jointly, with each
4413	4413	other or with groundwater management authorities, to conduct
4414	4414	studies or research, or to construct projects, under terms and
4415	4415	conditions that the districts consider beneficial. These joint
4416	4416	efforts may include studies of groundwater availability and
4417	4417	quality, aquifer modeling, and the interaction of groundwater and
4418	4418	surface water; educational programs; the purchase and sharing of
4419	4419	equipment; and the implementation of projects to make groundwater
4420	4420	available, including aquifer recharge, brush control, weather
4421	4421	modification, desalination, regionalization, and treatment or
4422	4422	conveyance facilities. The districts and authorities may contract
4423	4423	under their existing authorizations including those of Chapter 791,
4424	4424	Government Code, if their contracting authority is not limited by
4425	4425	Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government
4426	4426	Code.
4427	4427	SECTION 172. Section 36.109, Water Code, is amended to read
4428	4428	as follows:
4429	4429	Sec. 36.109. COLLECTION OF INFORMATION. A district or
4430	4430	groundwater management authority may collect any information the
4431	4431	entity's board deems necessary, including information regarding
4432	4432	the use of groundwater, water conservation, and the practicability
4433	4433	of recharging a groundwater reservoir. At the request of the
4434	4434	executive administrator, the district or authority shall provide
4435	4435	any data collected by the district or authority in a format
4436	4436	acceptable to the executive administrator.
4437	4437	SECTION 173. Section 36.110, Water Code, is amended to read
4438	4438	as follows:
4439	4439	Sec. 36.110. PUBLICATION OF PLANS AND INFORMATION. A
4440	4440	district or authority may publish its plans and the information it
4441	4441	develops, bring them to the attention of the users of groundwater in
4442	4442	the district or authority, and encourage the users to adopt and use
4443	4443	them.
4444	4444	SECTION 174. Section 36.111, Water Code, is amended to read
4445	4445	as follows:
4446	4446	Sec. 36.111. RECORDS AND REPORTS. (a) The district or
4447	4447	authority may require that records be kept and reports be made of
4448	4448	the drilling, equipping, and completing of water wells and of the
4449	4449	production and use of groundwater.
4450	4450	(b) In implementing Subsection (a), a district or authority
4451	4451	may adopt rules that require an owner or operator of a water well
4452	4452	that is required to be registered with or permitted by the district
4453	4453	or authority, except for the owner or operator of a well that is
4454	4454	exempt from permit requirements under Section 36.117(b)(1), to
4455	4455	report groundwater withdrawals using reasonable and appropriate
4456	4456	reporting methods and frequency.
4457	4457	SECTION 175. Section 36.112, Water Code, is amended to read
4458	4458	as follows:
4459	4459	Sec. 36.112. DRILLERS' LOGS. A district or authority shall
4460	4460	require that accurate drillers' logs be kept of water wells and that
4461	4461	copies of drillers' logs and electric logs be filed with the
4462	4462	district or authority.
4463	4463	SECTION 176. Sections 36.113(c) and (d), Water Code, are
4464	4464	amended to read as follows:
4465	4465	(c) A district may require that only the following be
4466	4466	included in the permit or permit amendment application, as
4467	4467	applicable under the rules of the district:
4468	4468	(1) the name and mailing address of the applicant and
4469	4469	the owner of the land on which the well will be located;
4470	4470	(2) if the applicant is other than the owner of the
4471	4471	property, documentation establishing the applicable authority to
4472	4472	construct and operate a well for the proposed use;
4473	4473	(3) a statement of the nature and purpose of the
4474	4474	proposed use and the amount of water to be used for each purpose;
4475	4475	(4) a water conservation plan or a declaration that
4476	4476	the applicant will comply with the groundwater management
4477	4477	authority's [district's] management plan;
4478	4478	(5) the location of each well and the estimated rate at
4479	4479	which water will be withdrawn;
4480	4480	(6) a water well closure plan or a declaration that the
4481	4481	applicant will comply with well plugging guidelines and report
4482	4482	closure to the commission;
4483	4483	(7) a drought contingency plan; and
4484	4484	(8) other information:
4485	4485	(A) included in a rule of the district in effect
4486	4486	on the date the application is submitted that specifies what
4487	4487	information must be included in an application for a determination
4488	4488	of administrative completeness; and
4489	4489	(B) reasonably related to an issue that a
4490	4490	district by law is authorized to consider.
4491	4491	(d) This subsection does not apply to the renewal of an
4492	4492	operating permit issued under Section 36.1145. Before granting or
4493	4493	denying a permit, or a permit amendment issued in accordance with
4494	4494	Section 36.1146, the district shall consider whether:
4495	4495	(1) the application conforms to the requirements
4496	4496	prescribed by this chapter and is accompanied by the prescribed
4497	4497	fees;
4498	4498	(2) the proposed use of water unreasonably affects
4499	4499	existing groundwater and surface water resources or existing permit
4500	4500	holders;
4501	4501	(3) the proposed use of water is dedicated to any
4502	4502	beneficial use;
4503	4503	(4) the proposed use of water is consistent with the
4504	4504	groundwater management authority's [district's] approved
4505	4505	management plan;
4506	4506	(5) if the well will be located in the Hill Country
4507	4507	Priority Groundwater Management Area, the proposed use of water
4508	4508	from the well is wholly or partly to provide water to a pond, lake,
4509	4509	or reservoir to enhance the appearance of the landscape;
4510	4510	(6) the applicant has agreed to avoid waste and
4511	4511	achieve water conservation; and
4512	4512	(7) the applicant has agreed that reasonable diligence
4513	4513	will be used to protect groundwater quality and that the applicant
4514	4514	will follow well plugging guidelines at the time of well closure.
4515	4515	SECTION 177. Section 36.1131, Water Code, is amended to
4516	4516	read as follows:
4517	4517	Sec. 36.1131. ELEMENTS OF PERMIT. (a) A permit issued by
4518	4518	the district to the applicant under Section 36.113 shall state the
4519	4519	terms and provisions prescribed by the district, which must comply
4520	4520	with the rules and management plan of the groundwater management
4521	4521	authority.
4522	4522	(b) The permit may include:
4523	4523	(1) the name and address of the person to whom the
4524	4524	permit is issued;
4525	4525	(2) the location of the well;
4526	4526	(3) the date the permit is to expire if no well is
4527	4527	drilled;
4528	4528	(4) a statement of the purpose for which the well is to
4529	4529	be used;
4530	4530	(5) a requirement that the water withdrawn under the
4531	4531	permit be put to beneficial use at all times;
4532	4532	(6) the location of the use of the water from the well;
4533	4533	(7) a water well closure plan or a declaration that the
4534	4534	applicant will comply with well plugging guidelines and report
4535	4535	closure to the commission;
4536	4536	(8) the conditions and restrictions, if any, placed on
4537	4537	the rate and amount of withdrawal;
4538	4538	(9) any conservation-oriented methods of drilling and
4539	4539	operating prescribed by the district;
4540	4540	(10) a drought contingency plan prescribed by the
4541	4541	district, which must comply with the groundwater management area's
4542	4542	rules and management plan; and
4543	4543	(11) other terms and conditions as provided by Section
4544	4544	36.113.
4545	4545	SECTION 178. Section 36.1132, Water Code, is amended to
4546	4546	read as follows:
4547	4547	Sec. 36.1132. PERMITS BASED ON MODELED AVAILABLE
4548	4548	GROUNDWATER. (a) A district, to the extent possible, shall issue
4549	4549	permits up to the point that the total volume of exempt and
4550	4550	permitted groundwater production will achieve an applicable
4551	4551	desired future condition under Section 36.108. The groundwater
4552	4552	management authority that includes the territory of the district
4553	4553	shall provide the district with the amount of groundwater
4554	4554	availability and desired future conditions under which the district
4555	4555	may issue permits.
4556	4556	(b) The district shall issue permits based on the features
4557	4557	of the aquifer underlying the applicant's land from which the water
4558	4558	is proposed to be drawn, along with the landowner's contiguous
4559	4559	acreage for the land on which the well would exist in relation to
4560	4560	the area of the aquifer [In issuing permits, the district shall
4561	4561	manage total groundwater production on a long-term basis to achieve
4562	4562	an applicable desired future condition and consider:
4563	4563	[(1) the modeled available groundwater determined by
4564	4564	the executive administrator;
4565	4565	[(2) the executive administrator's estimate of the
4566	4566	current and projected amount of groundwater produced under
4567	4567	exemptions granted by district rules and Section 36.117;
4568	4568	[(3) the amount of groundwater authorized under
4569	4569	permits previously issued by the district;
4570	4570	[(4) a reasonable estimate of the amount of
4571	4571	groundwater that is actually produced under permits issued by the
4572	4572	district; and
4573	4573	[(5) yearly precipitation and production patterns.
4574	4574	[(c) In developing the estimate of exempt use under
4575	4575	Subsection (b)(2), the executive administrator shall solicit
4576	4576	information from each applicable district].
4577	4577	SECTION 179. Sections 36.114(a) and (b), Water Code, are
4578	4578	amended to read as follows:
4579	4579	(a) The groundwater management authority [district] by rule
4580	4580	shall determine each activity regulated by the groundwater
4581	4581	management authority [district] for which a permit or permit
4582	4582	amendment is required. The district shall accept, process, and
4583	4583	consider permits and permit amendments in accordance with the
4584	4584	groundwater management authority's rules.
4585	4585	(b) For each activity for which the groundwater management
4586	4586	authority [district] determines a permit or permit amendment is
4587	4587	required under Subsection (a), and that is not exempt from a hearing
4588	4588	requirement under Section 36.1145, the groundwater management
4589	4589	authority [district] by rule shall determine whether a hearing on
4590	4590	the permit or permit amendment application is required.
4591	4591	SECTION 180. Sections 36.1146(a) and (c), Water Code, are
4592	4592	amended to read as follows:
4593	4593	(a) If the holder of an operating permit, in connection with
4594	4594	the renewal of a permit or otherwise, requests a change that
4595	4595	requires an amendment to the permit under groundwater management
4596	4596	authority [district] rules, the permit as it existed before the
4597	4597	permit amendment process remains in effect until the later of:
4598	4598	(1) the conclusion of the permit amendment or renewal
4599	4599	process, as applicable; or
4600	4600	(2) final settlement or adjudication on the matter of
4601	4601	whether the change to the permit requires a permit amendment.
4602	4602	(c) A district may initiate an amendment to an operating
4603	4603	permit, in connection with the renewal of a permit or otherwise, in
4604	4604	accordance with the groundwater management authority's
4605	4605	[district's] rules. If a district initiates an amendment to an
4606	4606	operating permit, the permit as it existed before the permit
4607	4607	amendment process shall remain in effect until the conclusion of
4608	4608	the permit amendment or renewal process, as applicable.
4609	4609	SECTION 181. Sections 36.116(a), (d), and (e), Water Code,
4610	4610	are amended to read as follows:
4611	4611	(a) In order to minimize as far as practicable the drawdown
4612	4612	of the water table or the reduction of artesian pressure, to control
4613	4613	subsidence, to prevent interference between wells, to prevent
4614	4614	degradation of water quality, or to prevent waste, a groundwater
4615	4615	management authority [district] by rule may regulate:
4616	4616	(1) the spacing of water wells by:
4617	4617	(A) requiring all water wells to be spaced
4618	4618	a certain distance from property lines or adjoining wells;
4619	4619	(B) requiring wells with a certain production
4620	4620	capacity, pump size, or other characteristic related to the
4621	4621	construction or operation of and production from a well to be spaced
4622	4622	a certain distance from property lines or adjoining wells; or
4623	4623	(C) imposing spacing requirements adopted by the
4624	4624	board of the groundwater management authority; and
4625	4625	(2) the production of groundwater by:
4626	4626	(A) setting production limits on wells;
4627	4627	(B) limiting the amount of water produced based
4628	4628	on acreage or tract size;
4629	4629	(C) limiting the amount of water that may be
4630	4630	produced from a defined number of acres assigned to an authorized
4631	4631	well site;
4632	4632	(D) limiting the maximum amount of water that may
4633	4633	be produced on the basis of acre-feet per acre or gallons per minute
4634	4634	per well site per acre;
4635	4635	(E) managed depletion; or
4636	4636	(F) any combination of the methods listed above
4637	4637	in Paragraphs (A) through (E).
4638	4638	(d) For better management of the groundwater resources
4639	4639	located in a groundwater management authority [district] or if a
4640	4640	groundwater management authority [district] determines that
4641	4641	conditions in or use of an aquifer differ substantially from one
4642	4642	geographic area of the district to another, the groundwater
4643	4643	management authority [district] may adopt different rules for:
4644	4644	(1) each aquifer, subdivision of an aquifer, or
4645	4645	geologic strata located in whole or in part within the boundaries of
4646	4646	the groundwater management authority [district]; or
4647	4647	(2) each geographic area overlying an aquifer or
4648	4648	subdivision of an aquifer located in whole or in part within the
4649	4649	boundaries of the groundwater management authority [district].
4650	4650	(e) In regulating the production of groundwater under
4651	4651	Subsection (a)(2), a groundwater management authority [district]:
4652	4652	(1) shall select a method that is appropriate based on
4653	4653	the hydrogeological conditions of the aquifer or aquifers in the
4654	4654	groundwater management authority [district]; and
4655	4655	(2) may limit the amount of water produced based on
4656	4656	contiguous surface acreage.
4657	4657	SECTION 182. Sections 36.117(a), (b), (c), (d), (f), (g),
4658	4658	and (h), Water Code, are amended to read as follows:
4659	4659	(a) A groundwater management authority [district] by rule
4660	4660	may provide an exemption from the groundwater management
4661	4661	authority's [district's] requirement to obtain any permit required
4662	4662	by this chapter or the groundwater management authority's
4663	4663	[district's] rules.
4664	4664	(b) Except as provided by this section, a groundwater
4665	4665	management authority [district] shall provide an exemption from a
4666	4666	[the] district requirement to obtain a permit for:
4667	4667	(1) drilling or operating a well used solely for
4668	4668	domestic use or for providing water for livestock or poultry if the
4669	4669	well is:
4670	4670	(A) located or to be located on a tract of land
4671	4671	larger than 10 acres; and
4672	4672	(B) drilled, completed, or equipped so that it is
4673	4673	incapable of producing more than 25,000 gallons of groundwater a
4674	4674	day;
4675	4675	(2) drilling a water well used solely to supply water
4676	4676	for a rig that is actively engaged in drilling or exploration
4677	4677	operations for an oil or gas well permitted by the Railroad
4678	4678	Commission of Texas provided that the person holding the permit is
4679	4679	responsible for drilling and operating the water well and the water
4680	4680	well is located on the same lease or field associated with the
4681	4681	drilling rig; or
4682	4682	(3) drilling a water well authorized under a permit
4683	4683	issued by the Railroad Commission of Texas under Chapter 134,
4684	4684	Natural Resources Code, or for production from the well to the
4685	4685	extent the withdrawals are required for mining activities
4686	4686	regardless of any subsequent use of the water.
4687	4687	(c) A groundwater management authority [district] may not
4688	4688	restrict the production of water from any well described by
4689	4689	Subsection (b)(1).
4690	4690	(d) A groundwater management authority [district] may
4691	4691	cancel a previously granted exemption and may require an operating
4692	4692	permit for or restrict production from a well and assess any
4693	4693	appropriate fees if:
4694	4694	(1) the groundwater withdrawals that were exempted
4695	4695	under Subsection (b)(1) are no longer used solely for domestic use
4696	4696	or to provide water for livestock or poultry;
4697	4697	(2) the groundwater withdrawals that were exempted
4698	4698	under Subsection (b)(2) are no longer used solely to supply water
4699	4699	for a rig that is actively engaged in drilling or exploration
4700	4700	operations for an oil or gas well permitted by the Railroad
4701	4701	Commission of Texas; or
4702	4702	(3) the groundwater withdrawals that were exempted
4703	4703	under Subsection (b)(3) are no longer necessary for mining
4704	4704	activities or are greater than the amount necessary for mining
4705	4705	activities specified in the permit issued by the Railroad
4706	4706	Commission of Texas under Chapter 134, Natural Resources Code.
4707	4707	(f) A groundwater management authority [district] may
4708	4708	require compliance with the groundwater management authority's
4709	4709	[district's] well spacing rules for the drilling of any well except
4710	4710	a well exempted under Subsection (b)(3).
4711	4711	(g) A groundwater management authority [district] may not
4712	4712	deny an application for a permit to drill and produce water for
4713	4713	hydrocarbon production activities if the application meets all
4714	4714	applicable rules as promulgated by the groundwater management
4715	4715	authority [district].
4716	4716	(h) A groundwater management authority [district] shall
4717	4717	require the owner of a water well to:
4718	4718	(1) register the well in accordance with rules
4719	4719	promulgated by the groundwater management authority [district];
4720	4720	and
4721	4721	(2) equip and maintain the well to conform to the
4722	4722	[district's] rules of the groundwater management authority
4723	4723	requiring installation of casing, pipe, and fittings to prevent the
4724	4724	escape of groundwater from a groundwater reservoir to any reservoir
4725	4725	not containing groundwater and to prevent the pollution or harmful
4726	4726	alteration of the character of the water in any groundwater
4727	4727	reservoir.
4728	4728	SECTION 183. Sections 36.119(a), (b), and (g), Water Code,
4729	4729	are amended to read as follows:
4730	4730	(a) Drilling or operating a well or wells without a required
4731	4731	permit or producing groundwater in violation of a groundwater
4732	4732	management authority [district] rule adopted under Section
4733	4733	36.116(a)(2) is declared to be illegal, wasteful per se, and a
4734	4734	nuisance.
4735	4735	(b) Except as provided by this section, a landowner or other
4736	4736	person who has a right to produce groundwater from land that is
4737	4737	adjacent to the land on which a well or wells are drilled or
4738	4738	operated without a required permit or permits or from which
4739	4739	groundwater is produced in violation of a groundwater management
4740	4740	authority [district] rule adopted under Section 36.116(a)(2), or
4741	4741	who owns or otherwise has a right to produce groundwater from land
4742	4742	that lies within one-half mile of the well or wells, may sue the
4743	4743	owner of the well or wells in a court of competent jurisdiction to
4744	4744	restrain or enjoin the illegal drilling, operation, or both. The
4745	4745	suit may be brought with or without the joinder of the district in
4746	4746	which the well or wells are located.
4747	4747	(g) Before filing a suit under Subsection (b) or (c), an
4748	4748	aggrieved party must file a written complaint with the district
4749	4749	having jurisdiction over the well or wells drilled or operated
4750	4750	without a required permit or in violation of a groundwater
4751	4751	management authority [district] rule. The district shall
4752	4752	investigate the complaint and, after notice and hearing and not
4753	4753	later than the 90th day after the date the written complaint was
4754	4754	received by the district, the district shall determine, based on
4755	4755	the evidence presented at the hearing, whether a groundwater
4756	4756	management authority [district] rule has been violated. The
4757	4757	aggrieved party may only file a suit under this section on or after
4758	4758	the 91st day after the date the written complaint was received by
4759	4759	the district.
4760	4760	SECTION 184. Section 36.120, Water Code, is amended to read
4761	4761	as follows:
4762	4762	Sec. 36.120. INFORMATION. On request of the executive
4763	4763	director or the executive administrator, the district and
4764	4764	groundwater management authority shall make available information
4765	4765	acquired [that it acquires] concerning the groundwater resources
4766	4766	within its jurisdiction, and shall make that information available
4767	4767	to each other. The district and groundwater management authority
4768	4768	shall also provide information to the commission and Texas Water
4769	4769	Development Board concerning its plans and activities in conserving
4770	4770	and protecting groundwater resources. On request of a district or
4771	4771	groundwater management authority, the executive director and the
4772	4772	executive administrator shall provide information they acquire
4773	4773	concerning the groundwater resources within the district's or
4774	4774	authority's jurisdiction.
4775	4775	SECTION 185. Section 36.121, Water Code, is amended to read
4776	4776	as follows:
4777	4777	Sec. 36.121. LIMITATION ON RULEMAKING POWER OF DISTRICTS
4778	4778	AND AUTHORITIES OVER WELLS IN CERTAIN COUNTIES. Except as provided
4779	4779	by Section 36.117, a district that is created under this chapter on
4780	4780	or after September 1, 1991, or a groundwater management authority,
4781	4781	shall exempt from regulation under this chapter a well and any water
4782	4782	produced or to be produced by a well that is located in a county that
4783	4783	has a population of 14,000 or less if the water is to be used solely
4784	4784	to supply a municipality that has a population of 121,000 or less
4785	4785	and the rights to the water produced from the well are owned by a
4786	4786	political subdivision that is not a municipality, or by a
4787	4787	municipality that has a population of 115,000 or less, and that
4788	4788	purchased, owned, or held rights to the water before the date on
4789	4789	which the district was created, regardless of the date the well is
4790	4790	drilled or the water is produced. The district or groundwater
4791	4791	management authority may not prohibit the political subdivision or
4792	4792	municipality from transporting produced water inside or outside the
4793	4793	district's or authority's boundaries.
4794	4794	SECTION 186. Sections 36.122(a), (c), (d), (f), and (g),
4795	4795	Water Code, are amended to read as follows:
4796	4796	(a) If an application for a permit or an amendment to a
4797	4797	permit under Section 36.113 proposes the transfer of groundwater
4798	4798	outside of a district's boundaries or to any person other than the
4799	4799	owner of the land on which the well is located regardless of whether
4800	4800	the transfer is inside or outside of the district, the district may
4801	4801	add conditions to the permit in accordance with this section [also
4802	4802	consider the provisions of this section in determining whether to
4803	4803	grant or deny the permit or permit amendment].
4804	4804	(c) The [Except as provided in Section 36.113(e), the]
4805	4805	district may not impose more restrictive permit conditions on
4806	4806	transporters than the district imposes on existing in-district
4807	4807	users.
4808	4808	(d) The district may impose a reasonable fee for processing
4809	4809	an application under this section. The fee may not exceed fees that
4810	4810	the district imposes for processing other applications under
4811	4811	Section 36.113. [An application filed to comply with this section
4812	4812	shall be considered and processed under the same procedures as
4813	4813	other applications for permits under Section 36.113 and shall be
4814	4814	combined with applications filed to obtain a permit for in-district
4815	4815	water use under Section 36.113 from the same applicant.]
4816	4816	(f) A district may grant a portion of its fee revenue to a
4817	4817	county located within the district for use in public capital
4818	4818	improvements relating to water development, including necessary
4819	4819	road improvements related to the water development activity [In
4820	4820	reviewing a proposed transfer of groundwater out of the district,
4821	4821	the district shall consider:
4822	4822	[(1) the availability of water in the district and in
4823	4823	the proposed receiving area during the period for which the water
4824	4824	supply is requested;
4825	4825	[(2) the projected effect of the proposed transfer on
4826	4826	aquifer conditions, depletion, subsidence, or effects on existing
4827	4827	permit holders or other groundwater users within the district; and
4828	4828	[(3) the approved regional water plan and approved
4829	4829	district management plan].
4830	4830	(g) The district may not deny a permit based on the fact that
4831	4831	the applicant seeks to transfer groundwater outside of the district
4832	4832	[but may limit a permit issued under this section if conditions in
4833	4833	Subsection (f) warrant the limitation, subject to Subsection (c)].
4834	4834	SECTION 187. Section 36.123, Water Code, is amended to read
4835	4835	as follows:
4836	4836	Sec. 36.123. RIGHT TO ENTER LAND. (a) The directors,
4837	4837	engineers, attorneys, agents, operators, and employees of a
4838	4838	district, groundwater management authority, or water supply
4839	4839	corporation may go on any land to inspect, make surveys, or perform
4840	4840	tests to determine the condition, value, and usability of the
4841	4841	property, with reference to the proposed location of works,
4842	4842	improvements, plants, facilities, equipment, or appliances. The
4843	4843	cost of restoration shall be borne by the district, authority, or
4844	4844	[the] water supply corporation.
4845	4845	(b) District and groundwater management authority employees
4846	4846	and agents are entitled to enter any public or private property
4847	4847	within the boundaries of the district or adjacent to any reservoir
4848	4848	or other property owned by the district or authority at any
4849	4849	reasonable time for the purpose of inspecting and investigating
4850	4850	conditions relating to the quality of water in the state or the
4851	4851	compliance with any rule, regulation, permit, or other order of the
4852	4852	district or authority. District or groundwater management
4853	4853	authority employees or agents acting under this authority who enter
4854	4854	private property shall observe the establishment's rules and
4855	4855	regulations concerning safety, internal security, and fire
4856	4856	protection and shall notify any occupant or management of their
4857	4857	presence and shall exhibit proper credentials.
4858	4858	SECTION 188. Section 36.124(a), Water Code, is amended to
4859	4859	read as follows:
4860	4860	(a) A governmental act or proceeding of a district or
4861	4861	groundwater management authority is conclusively presumed, as of
4862	4862	the date it occurred, valid and to have occurred in accordance with
4863	4863	all applicable statutes and rules if:
4864	4864	(1) the third anniversary of the effective date of the
4865	4865	act or proceeding has expired; and
4866	4866	(2) a lawsuit to annul or invalidate the act or
4867	4867	proceeding has not been filed on or before that third anniversary.
4868	4868	SECTION 189. Section 36.158, Water Code, is amended to read
4869	4869	as follows:
4870	4870	Sec. 36.158. GRANTS. A district or groundwater management
4871	4871	authority may make or accept grants, gratuities, advances, or loans
4872	4872	in any form to or from any source approved by its [the] board,
4873	4873	including any governmental entity, and may enter into contracts,
4874	4874	agreements, and covenants in connection with grants, gratuities,
4875	4875	advances, or loans that the board considers appropriate.
4876	4876	SECTION 190. Section 36.159, Water Code, is amended to read
4877	4877	as follows:
4878	4878	Sec. 36.159. GROUNDWATER [CONSERVATION DISTRICT]
4879	4879	MANAGEMENT PLAN FUNDS. The Texas Water Development Board may
4880	4880	allocate funds from the water assistance fund to a district or
4881	4881	groundwater management authority to:
4882	4882	(1) conduct initial data collections under this
4883	4883	chapter;
4884	4884	(2) develop and implement a long-term management plan
4885	4885	under Section 36.1071; and
4886	4886	(3) participate in regional water plans.
4887	4887	SECTION 191. Section 36.160, Water Code, is amended to read
4888	4888	as follows:
4889	4889	Sec. 36.160. FUNDS. The Texas Water Development Board, the
4890	4890	commission, the Parks and Wildlife Department, the Texas
4891	4891	Agricultural Extension Service, and institutions of higher
4892	4892	education may allocate funds to carry out the objectives of this
4893	4893	chapter and Chapter 35, which include but are not limited to:
4894	4894	(1) conducting initial and subsequent studies and
4895	4895	surveys under Sections 36.106, 36.107, and 36.109;
4896	4896	(2) providing appropriate education in affected areas
4897	4897	identified in Section 35.007 relating to the problems and issues
4898	4898	concerning water management that may arise;
4899	4899	(3) processing priority groundwater management area
4900	4900	evaluations under this chapter and Chapter 35;
4901	4901	(4) providing technical and administrative assistance
4902	4902	to newly created districts under this chapter and Chapter 35;
4903	4903	(5) covering the costs of newspaper notices required
4904	4904	under Sections 35.009 and 36.014 and failed elections in accordance
4905	4905	with Sections 35.014(c), 36.017(h), and 36.019; and
4906	4906	(6) providing for assistance from the Parks and
4907	4907	Wildlife Department to the Texas Water Development Board, a
4908	4908	groundwater management authority, or a district for the purpose of
4909	4909	assessing fish and wildlife resource habitat needs as they may
4910	4910	apply to overall management plan goals and objectives of the
4911	4911	district.
4912	4912	SECTION 192. Section 36.161(a), Water Code, is amended to
4913	4913	read as follows:
4914	4914	(a) The Texas Water Development Board may provide funds
4915	4915	under Sections 36.159 and 36.160, Chapters 15, 16, and 17, and
4916	4916	Subchapter L of this chapter to a district or groundwater
4917	4917	management authority if the Texas Water Development Board
4918	4918	determines that such funding will allow the district or authority
4919	4919	to comply or continue to comply with provisions of this chapter.
4920	4920	SECTION 193. Section 36.207, Water Code, is amended to read
4921	4921	as follows:
4922	4922	Sec. 36.207. USE OF FEES. A district may use funds obtained
4923	4923	from administrative, production, or export fees collected under a
4924	4924	special law governing the district or this chapter for any purpose
4925	4925	consistent with the district's public purposes [approved
4926	4926	management plan], including, without limitation, making grants,
4927	4927	loans, or contractual payments to achieve, facilitate, or expedite
4928	4928	reductions in groundwater pumping or the development or
4929	4929	distribution of alternative water supplies.
4930	4930	SECTION 194. Section 36.251(b), Water Code, is amended to
4931	4931	read as follows:
4932	4932	(b) Only the district, the groundwater management authority
4933	4933	in which the district exists, the applicant, and parties to a
4934	4934	contested case hearing may participate in an appeal of a decision on
4935	4935	the application that was the subject of that contested case
4936	4936	hearing. An appeal of a decision on a permit application must
4937	4937	include the applicant as a necessary party.
4938	4938	SECTION 195. Subchapter B, Chapter 36, Water Code, is
4939	4939	amended by adding Section 36.022 to read as follows:
4940	4940	Sec. 36.022. NONDISCRIMINATION IN PERMITTING DECISIONS.
4941	4941	Notwithstanding any provision in a special law governing a
4942	4942	district, a district may not:
4943	4943	(1) discriminate in any permitting decision, rule, or
4944	4944	other action using historic or existing use as a criteria; or
4945	4945	(2) prevent or limit exportation of water from the
4946	4946	district.
4947	4947	SECTION 196. Section 49.3189, Water Code, is amended to
4948	4948	read as follows:
4949	4949	Sec. 49.3189. CONVERSION OF WATER RIGHTS. After a district
4950	4950	excludes land from the district's territory under this subchapter,
4951	4951	the municipality or other municipal supplier that proposes to serve
4952	4952	the land with a potable water supply may petition the district to
4953	4953	convert the proportionate water rights previously allocated for the
4954	4954	land from irrigation use rights to municipal use rights for the use
4955	4955	and benefit of the municipality or other municipal supplier. The
4956	4956	district shall compute the proportionate water rights available and
4957	4957	shall initiate administrative proceedings to convert the
4958	4958	irrigation use rights to municipal use rights. Before the district
4959	4959	is obligated to initiate the administrative proceedings, the
4960	4960	municipality or other municipal supplier must deposit with the
4961	4961	district the amount that the district estimates the district will
4962	4962	incur as reasonable expenses and attorney's fees in those
4963	4963	proceedings. On approval of the conversion by the Texas Water
4964	4964	Development Board [commission], the district shall deliver the
4965	4965	water to the municipality or other municipal supplier in the manner
4966	4966	those entities may agree to under this code.
4967	4967	SECTION 197. Section 49.503(b), Water Code, is amended to
4968	4968	read as follows:
4969	4969	(b) A municipal water supplier that serves land described by
4970	4970	Subsection (a) may petition the district in accordance with this
4971	4971	section to convert the proportionate irrigation water right to the
4972	4972	Rio Grande from irrigation use to municipal use with municipal
4973	4973	priority of allocation under Texas Water Development Board
4974	4974	[commission] rules, for the use and benefit of the municipal water
4975	4975	supplier.
4976	4976	SECTION 198. Sections 49.506(a) and (b), Water Code, are
4977	4977	amended to read as follows:
4978	4978	(a) Not later than the second anniversary of the date the
4979	4979	municipal water supplier files a petition under Section 49.503:
4980	4980	(1) a district shall provide the municipal water
4981	4981	supplier with the proportionate water rights described by Section
4982	4982	49.505 from the district's existing water rights; or
4983	4983	(2) a district shall, if the district does not have
4984	4984	sufficient existing water rights:
4985	4985	(A) apply for appropriate amendments to the
4986	4986	district's water rights under Texas Water Development Board
4987	4987	[commission] rules to convert the proportionate water rights from
4988	4988	irrigation use to municipal use with municipal priority of
4989	4989	allocation; and
4990	4990	(B) provide to the municipal water supplier the
4991	4991	converted rights described by Section 49.505.
4992	4992	(b) The district may continue to use the irrigation use
4993	4993	water for district purposes until:
4994	4994	(1) the Texas Water Development Board [commission]
4995	4995	approves the amendment to the district's water rights; or
4996	4996	(2) the water is otherwise provided to the municipal
4997	4997	water supplier.
4998	4998	SECTION 199. Section 49.509(a), Water Code, is amended to
4999	4999	read as follows:
5000	5000	(a) Subject to Subsection (d), the Rio Grande Regional Water
5001	5001	Authority annually at its January meeting shall calculate the
5002	5002	current market value by using the average price per acre-foot of
5003	5003	municipal use water after conversion from irrigation use water to
5004	5004	municipal use water with a municipal priority of allocation under
5005	5005	Texas Water Development Board [commission] rules of the last three
5006	5006	purchases involving:
5007	5007	(1) a municipal water supplier;
5008	5008	(2) a party other than a municipal water supplier; and
5009	5009	(3) at least 100 acre-feet of municipal use water,
5010	5010	with municipal priority of allocation.
5011	5011	SECTION 200. Section 51.852, Water Code, is amended to read
5012	5012	as follows:
5013	5013	Sec. 51.852. COOPERATION WITH TEXAS WATER DEVELOPMENT
5014	5014	BOARD, AUTHORITY, CORPS OF ENGINEERS, AND OTHER OWNERS. The
5015	5015	commission, in conjunction with the Texas Water Development Board,
5016	5016	the authority, the United States Army Corps of Engineers, and other
5017	5017	reservoir owners in the Trinity River basin, shall develop and
5018	5018	implement a coordinated basinwide water release program for flood
5019	5019	routing and control.
5020	5020	SECTION 201. Section 51.853, Water Code, is amended to read
5021	5021	as follows:
5022	5022	Sec. 51.853. COOPERATION WITH TEXAS WATER DEVELOPMENT
5023	5023	BOARD, AUTHORITY, AND OWNERS. The commission, in conjunction with
5024	5024	the Texas Water Development Board, the authority, and all reservoir
5025	5025	owners in the Trinity River basin, may review, at least every 10
5026	5026	years, all water rights permits affecting the basin.
5027	5027	SECTION 202. Section 51.854, Water Code, is amended to read
5028	5028	as follows:
5029	5029	Sec. 51.854. FLOOD WARNING SYSTEM. The commission, the
5030	5030	Texas Water Development Board, and the authority, in conjunction
5031	5031	with affected political subdivisions, shall develop a basinwide
5032	5032	flood warning system to alert the public and local officials of
5033	5033	imminent flooding in order to effectuate orderly withdrawal from
5034	5034	floodplains and to institute other appropriate precautions.
5035	5035	SECTION 203. Sections 55.193(a), (b), and (d), Water Code,
5036	5036	are amended to read as follows:
5037	5037	(a) Any district which has a permit issued by the Texas
5038	5038	Water Development Board [commission] to construct a reservoir and
5039	5039	to appropriate water from a stream or watershed for irrigation or
5040	5040	other purposes may convey to another district an interest in the
5041	5041	reservoir or water rights.
5042	5042	(b) The conveyance shall be recorded in the office of the
5043	5043	county clerk of the county in which the property is located and in
5044	5044	the office of the executive administrator of the Texas Water
5045	5045	Development Board [director].
5046	5046	(d) After the conveyance is filed in the office of the
5047	5047	executive administrator of the Texas Water Development Board
5048	5048	[director], the rights conveyed vest in the district to which the
5049	5049	conveyance was made as if the rights were granted directly by the
5050	5050	Texas Water Development Board [commission].
5051	5051	SECTION 204. Section 55.198, Water Code, is amended to read
5052	5052	as follows:
5053	5053	Sec. 55.198. PUMPING AND DELIVERING WATER TO LAND NEAR
5054	5054	DISTRICT. The district may enter into a contract with a person who
5055	5055	owns or uses land in the vicinity of the district and who has a
5056	5056	permit from the Texas Water Development Board [commission] to
5057	5057	appropriate water for use in irrigation or for domestic or
5058	5058	commercial uses to pump or deliver the water to the person's land.
5059	5059	SECTION 205. Section 58.180, Water Code, is amended to read
5060	5060	as follows:
5061	5061	Sec. 58.180. AMENDMENTS TO WATER RIGHTS. The board may
5062	5062	apply to the Texas Water Development Board [commission] to amend
5063	5063	its water rights as provided by Section 11.122 [of this code] and
5064	5064	the rules of the Texas Water Development Board [commission].
5065	5065	SECTION 206. Section 580.001, Local Government Code, is
5066	5066	amended to read as follows:
5067	5067	Sec. 580.001. WATER CONTRACTS IN BORDER MUNICIPALITIES AND
5068	5068	COUNTIES. The governing body of a municipality or county that has a
5069	5069	boundary that is contiguous with the border between this state and
5070	5070	the Republic of Mexico may contract for the acquisition of water or
5071	5071	water rights with a border municipality or state in the Republic of
5072	5072	Mexico if the contract is approved and monitored by the Texas Water
5073	5073	Development Board [Natural Resource Conservation Commission] and
5074	5074	the International Boundary and Water Commission, United States and
5075	5075	Mexico.
5076	5076	SECTION 207. Section 111.0192(a), Natural Resources Code,
5077	5077	is amended to read as follows:
5078	5078	(a) The right of eminent domain granted under this chapter
5079	5079	to any pipelines transporting coal in whatever form shall not
5080	5080	include and cannot be used to condemn water or water rights for use
5081	5081	in the transportation of coal by pipeline, and no Texas water from
5082	5082	any source shall be used in connection with the transportation,
5083	5083	maintenance, or operation of a coal slurry pipeline (except water
5084	5084	used for drinking, toilet, bath, or other personal uses at pumping
5085	5085	stations or offices) within the State of Texas unless the Texas
5086	5086	Water Development Board [Natural Resource Conservation Commission]
5087	5087	shall determine, after public hearing, that the use will not be
5088	5088	detrimental to the water supply of the area from which the water is
5089	5089	sought to be extracted.
5090	5090	SECTION 208. Section 111.305, Natural Resources Code, is
5091	5091	amended to read as follows:
5092	5092	Sec. 111.305. OTHER AGENCIES. (a) The commission shall
5093	5093	seek and act on the recommendations of the Texas [Natural Resource
5094	5094	Conservation] Commission on Environmental Quality, the Governor's
5095	5095	Energy Advisory Council, or their successors responsible for
5096	5096	environmental determinations and shall specify the proper use and
5097	5097	disposal of nondischargeable water.
5098	5098	(b) Neither the authority conveyed to the commission by this
5099	5099	subchapter to issue certificates and to promulgate rules governing
5100	5100	pipelines transporting coal in whatever form nor the powers and
5101	5101	duties conveyed on those pipelines by this chapter shall affect,
5102	5102	diminish, or otherwise limit the jurisdiction and authority of the
5103	5103	Texas Water Development Board and the Texas [Natural Resource
5104	5104	Conservation] Commission on Environmental Quality to regulate by
5105	5105	applicable rules the acquisition, use, control, disposition, and
5106	5106	discharge of water or water rights in Texas.
5107	5107	SECTION 209. Section 22.022(b), Parks and Wildlife Code, is
5108	5108	amended to read as follows:
5109	5109	(b) Improvements may include the construction of dams to
5110	5110	impound water to form a lake or lakes for recreational and other
5111	5111	conservation purposes within the park. Before constructing any dam
5112	5112	or lake, the commission must obtain permits required by law from the
5113	5113	Texas Water Development Board [Rights Commission].
5114	5114	SECTION 210. Section 22.072, Parks and Wildlife Code, is
5115	5115	amended to read as follows:
5116	5116	Sec. 22.072. PERMIT FOR DAM. A dam may not be constructed
5117	5117	until a permit has been obtained from the Texas Water Development
5118	5118	Board [Rights Commission].
5119	5119	SECTION 211. Section 8104.206, Special District Local Laws
5120	5120	Code, is amended to read as follows:
5121	5121	Sec. 8104.206. ACQUISITION OF WATER RIGHTS NOT PREVENTED.
5122	5122	This chapter does not prevent the authority from acquiring water
5123	5123	rights under any law or permit if the acquisition is approved by
5124	5124	order or later permit from the Texas Water Development Board
5125	5125	[Commission on Environmental Quality].
5126	5126	SECTION 212. The following provisions of the Water Code are
5127	5127	repealed:
5128	5128	(1) Section 5.506;
5129	5129	(2) Sections 5.701(c), (h), (i), (j), (k), (l), (m),
5130	5130	and (o);
5131	5131	(3) Section 11.030;
5132	5132	(4) Sections 11.085(t) and (u);
5133	5133	(5) Sections 11.202(d) and (e);
5134	5134	(6) Section 11.301;
5135	5135	(7) Section 11.302;
5136	5136	(8) Section 11.303;
5137	5137	(9) Section 11.304;
5138	5138	(10) Section 11.305;
5139	5139	(11) Section 11.306;
5140	5140	(12) Section 11.307;
5141	5141	(13) Section 11.308;
5142	5142	(14) Section 11.309;
5143	5143	(15) Section 11.310;
5144	5144	(16) Section 11.311;
5145	5145	(17) Section 11.312;
5146	5146	(18) Section 11.313;
5147	5147	(19) Section 11.314;
5148	5148	(20) Section 11.315;
5149	5149	(21) Section 11.316;
5150	5150	(22) Section 11.317;
5151	5151	(23) Section 11.318;
5152	5152	(24) Section 11.319;
5153	5153	(25) Section 11.320;
5154	5154	(26) Section 11.321;
5155	5155	(27) Section 11.322;
5156	5156	(28) Section 11.323;
5157	5157	(29) Section 11.324;
5158	5158	(30) Section 11.3271(j), as added by Chapter 281 (H.B.
5159	5159	2250), Acts of the 78th Legislature, Regular Session, 2003;
5160	5160	(31) Section 11.551(2);
5161	5161	(32) Section 16.012(f);
5162	5162	(33) Section 35.004;
5163	5163	(34) Section 36.001(13);
5164	5164	(35) Section 36.014(b);
5165	5165	(36) Section 36.108(d-4);
5166	5166	(37) Sections 36.1083(q) and (r);
5167	5167	(38) Section 36.113(e);
5168	5168	(39) Section 36.116(b);
5169	5169	(40) Sections 36.122(b), (h), (i), (j), (k), (m), (n),
5170	5170	(o), and (p);
5171	5171	(41) Section 36.301;
5172	5172	(42) Section 36.3011;
5173	5173	(43) Sections 36.302(c), (d), and (f); and
5174	5174	(44) Section 55.001(4).
5175	5175	SECTION 213. (a) In this section:
5176	5176	(1) "Board" means the Texas Water Development Board.
5177	5177	(2) "Commission" means the Texas Commission on
5178	5178	Environmental Quality.
5179	5179	(b) Not later than September 1, 2020, the board and the
5180	5180	commission shall enter into a memorandum of understanding relating
5181	5181	to the transfer of the administration of surface water rights
5182	5182	permitting from the commission to the board. The memorandum of
5183	5183	understanding must include a timetable and specific steps and
5184	5184	methods for the transfer on January 1, 2021, of all powers, duties,
5185	5185	obligations, rights, contracts, leases, records, assets, real or
5186	5186	personal property, personnel, and unspent and unobligated
5187	5187	appropriations and other funds that relate primarily to the
5188	5188	administration of surface water rights permitting from the
5189	5189	commission to the board.
5190	5190	(c) On January 1, 2021:
5191	5191	(1) all powers, duties, obligations, rights,
5192	5192	contracts, leases, records, assets, real or personal property,
5193	5193	personnel, and unspent and unobligated appropriations and other
5194	5194	funds of the commission that relate primarily to the administration
5195	5195	of surface water rights permitting are transferred to the board;
5196	5196	(2) all rules, policies, forms, procedures, and
5197	5197	decisions of the commission that relate primarily to the
5198	5198	administration of surface water rights permitting are continued in
5199	5199	effect as rules, policies, forms, procedures, and decisions of the
5200	5200	board, until superseded by a rule or other appropriate action of the
5201	5201	board; and
5202	5202	(3) any investigation, complaint, action, contested
5203	5203	case, or other proceeding involving the commission that relates
5204	5204	primarily to the administration of surface water rights permitting
5205	5205	is transferred without change in status to the board, and the board
5206	5206	assumes, without a change in status, the position of the commission
5207	5207	in any investigation, complaint, action, contested case, or other
5208	5208	proceeding that relates primarily to the administration of surface
5209	5209	water rights permitting involving the commission.
5210	5210	(d) The transfer of the powers and duties of the commission
5211	5211	that relate primarily to the administration of surface water rights
5212	5212	permitting to the board does not affect the validity of a right,
5213	5213	privilege, or obligation accrued, a permit or license issued, a
5214	5214	penalty, forfeiture, or punishment assessed, a rule adopted, a
5215	5215	proceeding, investigation, or remedy begun, a decision made, or
5216	5216	other action taken by or in connection with the commission.
5217	5217	SECTION 214. Nothing in this Act shall be construed to
5218	5218	affect any existing surface water right, certificate of
5219	5219	adjudication, certified filing, or other surface water quantity
5220	5220	permit, or surface water priority.
5221	5221	SECTION 215. A water contract entered into before the
5222	5222	effective date of this Act under which groundwater is exported from
5223	5223	a groundwater conservation district to another geographic area has
5224	5224	a five-year exemption from a reduction in exports by a limitation
5225	5225	imposed from a groundwater management authority, unless water
5226	5226	availability is threatened or impaired for another well located
5227	5227	within one mile from the well that is producing exported water.
5228	5228	SECTION 216. (a) A fee established by Section 12.115, Water
5229	5229	Code, as added by this Act, is due on October 1, 2022, for water
5230	5230	sales occurring between September 1, 2021, and August 31, 2022.
5231	5231	(b) Not later than January 1, 2021, the Texas Water
5232	5232	Development Board shall designate groundwater management
5233	5233	authorities as required by Section 35.052, Water Code, as added by
5234	5234	this Act.
5235	5235	SECTION 217. To the extent of any conflict, this Act
5236	5236	prevails over another Act of the 86th Legislature, Regular Session,
5237	5237	2019, relating to nonsubstantive additions to and corrections in
5238	5238	enacted codes.
5239	5239	SECTION 218. This Act takes effect September 1, 2019.