SB 864 requires groundwater conservation districts to be notified whenever a surface water permit from the Texas Commission on Environmental Quality proposes to use groundwater as an alternative source. HB 89 prohibits state entities from contracting with companies that boycott Israel or invest in companies that support foreign terrorist organizations. SB 625 requires special purpose districts to report financial and tax information to the Texas Comptroller's office for transparency.

1. SB 864, HB 89, AND SB 625
Bill Dugat III
Bickerstaff Heath Delgado Acosta LLP
3711 S. MoPac Expwy.
Bldg. 1, Suite 300
Austin, TX 78746
bdugat@bickerstaff.com
TAGD
Regular Business Meeting
January 2018

2. SB 864
Requires notice to be provided to a GCD with
jurisdiction over the groundwater whenever a
surface water permit of TCEQ proposes to use
groundwater as an alternative source.

3. Examples:
• Owner of D&L pond converts to non-exempt
use;
• Surface water fully appropriated-TCEQ
conditions surface water permit to require use of
groundwater to keep pond full; and
• GCD unaware; applicant drills non-permitted
well.

4. • § 11.132 is a notice provision for permit for new surface water
appropriations
• § 11.143 governs use of water from exempt dam or reservoir for non-
exempt purposes
In both instances, SB 864 requires mailed notice to GCD if groundwater used
as an alternative source and is located within a GCD.
• § 11.143 also requires newspaper publication for counties covered by the
GCD for permit to convert to non-exempt use
SB 864 amends §§ 11.132
and 11.143 of the Water Code

5. September 11, 2017 TCEQ held shareholders meeting.
During process, TCEQ asked two questions:
1. Did the legislature intend to expand the new notice
requirement under §11.132(d)(3) to include newspaper
publication in a newspaper of general circulation?
2. Should the new mailed/publication notice requirements
apply to a beds and bank authorization under § 11.042(c)?

6. TWCA’s September 26, 2017 response:
1. Did the legislature intend to expand newspaper
publication notice in area of GCD for new
appropriation?
No.
2. Should new notice requirements apply to Bed and
Banks Permit?
No.

7. Rulemaking Schedule
Jan. 19, 2018 Rule Package Proposal
Feb. 7, 2018 Rule Proposal in TCEQ Agenda
Feb. 23, 2018 Publication in Tex. Reg.
March 20, 2018 Public Hearing
Feb. 23-March 26 Comment Period
July 25, 2018 Adoption Proposed
Aug. 23, 2018 Adoption Reading

8. HB 89
Prohibits contracts within companies that boycott Israel and restricts
certain state investments.
§ 2270.002. Provision Required in Contract. A governmental entity
may not enter into a Contract with a company for goods or services
unless the Contract contains a written verification from the company
that it:
(1) Does not boycott Israel; and
(2) Will not boycott Israel during the term of the Contract.

9. “Governmental entity” includes a state agency or political
subdivision of the state.
“Boycotting” Israel means refusing to deal with,
terminating business activities with, or otherwise taking any
action that is intended to penalize, inflict economic harm
on, or limit commercial relations specifically with Israel, or
with a person or entity doing business in Israel, or in an
Israeli-controlled territory, but does not include an action
made for ordinary business purposes.

10. “Company” means a for-profit sole
proprietorship, organization, association,
corporation, partnership, joint venture, limited
partnership, limited liability partnership, or
limited liability company, including a wholly
owned subsidiary, majority-owned subsidiary,
parent company, or affiliate of those entities or
business associations that exists to make a
profit.

11. Bill Analysis
“The bill is an appropriate response to the
Boycott, Divestment, Sanctions (BDS)
movement, an international effort to use
economic sanctions to influence Israeli policy.”
CSHB 89 would support Israel, a key US ally
and taxes trading partner from efforts by some
companies to boycott Israel . . .”

13. SB 252
Governmental entity may not enter into a
“governmental contract” with a company listed on
the Comptroller’s website as having contracts with or
provide supplies or services to a foreign terrorist
organization.
Comptroller.texas.gov/purchasing/publications/divestment.php

14. • Transparency bill
• Must report information for inclusion in Special Purpose District Public
Information Database if:
Ø District is political subdivision;
Ø District is authorized to:
ü Impose ad valorem tax or sales and use tax;
ü Impose an assessment; and
ü Charge a fee.
• District, in most recent fiscal year, had outstanding bonds, gross receipts in
excess of $250,000 or cash and investments in excess of $250,000; and
• Does not include city, county, school district, or political subdivision with
statewide jurisdiction.
SB 625
Special Purpose District Financial
and Tax Reporting

15. If meet criteria, following submitted to Comptroller each year:
• Taxpayer ID;
• Contract information;
• Third party contact information;
• Contact information of Tax Assessor Collector, if applicable;
• Tax rate, if applicable;
• Bonds; and
• Tax rate.
SB 625 (continued)

16. • Deadline and Reporting:
90 day reporting window 1/31-5/1, 2018 on line form
• $2000 penalty for non-report after notice of failure to report
Note: Comptroller has no means to determine if a district should
report or if information reported has changed.
SB 625 (continued)

17. SB 864, HB 89, AND SB 625
Bill Dugat III
Bickerstaff Heath Delgado Acosta LLP
3711 S. MoPac Expwy.
Bldg. 1, Suite 300
Austin, TX 78746
bdugat@bickerstaff.com
TAGD
Regular Business Meeting
January 2018