84R15264 SLB-F By: Keffer H.B. No. 200 A BILL TO BE ENTITLED AN ACT relating to the regulation of groundwater. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 36.0015, Water Code, is amended to read as follows: Sec. 36.0015. PURPOSE. In order to provide for the conservation, preservation, protection, recharging, and prevention of waste of groundwater, and of groundwater reservoirs or their subdivisions, and to control subsidence caused by withdrawal of water from those groundwater reservoirs or their subdivisions, consistent with the objectives of Section 59, Article XVI, Texas Constitution, groundwater conservation districts may be created as provided by this chapter. Groundwater conservation districts created as provided by this chapter are the state's preferred method of groundwater management in order to protect property rights, balance the development and conservation of groundwater to meet the needs of this state, and use the best available science in the development of groundwater through rules developed, adopted, and promulgated by a district in accordance with the provisions of this chapter. SECTION 2. The heading to Section 36.1083, Water Code, is amended to read as follows: Sec. 36.1083. APPEAL OF DESIRED FUTURE CONDITIONS: CONTESTED CASE. SECTION 3. Section 36.1083, Water Code, is amended by amending Subsections (a) and (b) and adding Subsections (e) through (m) to read as follows: (a) In this section: (1) "Affected person" has the meaning assigned by Section 36.1082. (2) "Development [, "development] board" means the Texas Water Development Board. (3) "Office" means the State Office of Administrative Hearings. (b) Not later than the 120th day after the date on which a district adopts a desired future condition under Section 36.108(d-4), an affected [A] person [with a legally defined interest in the groundwater in the management area, a district in or adjacent to the management area, or a regional water planning group for a region in the management area] may file a petition with the development board requesting that the development board contract with the office to conduct a contested case hearing on the matter of appealing the approval of the desired future condition. The matter referred for hearing may include as an issue the reasonableness of the desired future condition, but may not include as an issue a reason for an inquiry described by Section 36.1082(b) [conditions of the groundwater resources established under this section. The petition must provide evidence that the districts did not establish a reasonable desired future condition of the groundwater resources in the management area]. (e) Not later than the 45th day after the date of the deadline for filing a petition under Subsection (b), the development board shall: (1) contract with the office to conduct the contested case hearing requested under Subsection (b); and (2) submit to the office a copy of any petitions related to the hearing requested under Subsection (b) and received by the development board. (f) During the period between the filing of the petition and the actions described by Subsection (e), the development board may facilitate coordination between the petitioner and the district to resolve the issues raised in the petition. If the petitioner and the district cannot resolve the issues raised in the petition, a hearing must be conducted in accordance with Chapter 2001, Government Code, and rules of the development board and the office. (g) The development board may adopt rules for notice and procedures for hearings conducted under this section. Rules adopted under this section must provide for the development board to provide general notice of the hearing to the public and individual notice of the hearing to the participants, including the district, the petitioner, a party to the hearing identified under Subsection (h)(3), the commission, and each nonparty district and regional planning group in the same management area as the district that is a party to the hearing. (h) Before a hearing conducted under this section, the office shall hold a prehearing conference to determine preliminary matters, including: (1) whether the petition should be dismissed for failure to state a claim on which relief can be granted; (2) whether a person seeking to participate in the hearing is an affected person who is eligible to participate; and (3) which persons shall be named as parties to the hearing. (i) The petitioner shall pay the costs of the contract with the office to conduct the hearing under this section. The petitioner shall pay to the development board an amount sufficient to pay the contract amount before the hearing begins. After the hearing, the development board shall assess costs to one or more of the parties participating in the hearing and shall refund any excess money to the petitioner. The development board shall adopt rules for the manner of payment. The development board shall consider the following in apportioning costs of the hearing: (1) the party who requested the hearing; (2) the party who prevailed in the hearing; (3) the financial ability of the party to pay the costs; (4) the extent to which the party participated in the hearing; and (5) any other factor relevant to a just and reasonable assessment of costs. (j) On receipt of the administrative law judge's findings of fact and conclusions of law in a proposal for decision, including a dismissal of a petition under Subsection (h), the development board shall issue a final order stating the development board's decision on the contested matter and the development board's findings of fact and conclusions of law. The development board may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify an order issued by the administrative law judge, as provided by Section 2001.058(e), Government Code. (k) If the development board in its final order finds that a desired future condition is unreasonable, the districts in the same management area as the district that participated in the hearing shall reconvene in a joint planning meeting not later than the 30th day after the date of the final order for the purpose of revising the desired future condition. (l) A final order by the development board described by Subsection (k) does not automatically invalidate the adoption of a desired future condition by a district that was not a party to the hearing conducted under this section. (m) The administrative law judge may consolidate hearings requested under this section that affect two or more districts. The administrative law judge shall prepare separate findings of fact and conclusions of law for each district included as a party in a multidistrict hearing. SECTION 4. Subchapter D, Chapter 36, Water Code, is amended by adding Section 36.10835 to read as follows: Sec. 36.10835. JUDICIAL APPEAL OF DESIRED FUTURE CONDITIONS. (a) A final order issued under Section 36.1083 may be appealed to the district court in Travis County under the substantial evidence standard of review as provided by Section 2001.174, Government Code. If the court finds that a desired future condition is unreasonable, the court shall strike the desired future condition and order the districts in the same management area as the district that participated in the hearing to reconvene in a joint planning meeting not later than the 30th day after the date of the court order for the purpose of revising the desired future condition. (b) A court's finding under this section does not apply to a desired future condition that is not a matter before the court. SECTION 5. Subchapter D, Chapter 36, Water Code, is amended by adding Section 36.1145 to read as follows: Sec. 36.1145. APPEAL OF PERMIT OR PERMIT AMENDMENT DENIAL. (a) In this section, "development board" means the Texas Water Development Board. (b) An applicant for a permit or permit amendment or a person who participated as a party in a permit or permit amendment hearing before the district may file a petition with the development board to request an appeal of an action by a district on an application for a permit or permit amendment submitted under Section 36.113 or 36.114. The petitioner must state the basis for the appeal. (c) In response to a petition under this section, the development board shall hold at least one hearing at a central location in the district to take testimony on the petition. The development board may delegate responsibility for a hearing to the executive administrator or to a person designated by the executive administrator. (d) The development board shall review the petition, testimony at the hearing, and evidence presented by the parties and shall consider: (1) only issues raised before the district during the permit or permit amendment process; and (2) whether the district's actions in regard to the permit or permit amendment are consistent with Section 36.1132. (e) After review under Subsection (d), the development board shall issue its findings and recommendations regarding the permit or permit amendment. (f) On receipt of the development board's findings and recommendations, the district shall reconsider action on the permit or permit amendment, giving consideration to the development board's findings and recommendations and district rules, and issue a final decision on the permit or permit amendment. (g) An applicant may appeal a final decision issued under Subsection (f) by filing suit against the district as provided by Section 36.251. (h) Chapter 2001, Government Code, does not apply to a petition filed under this section or to a hearing held under this section. (i) The development board may adopt rules to implement this section. SECTION 6. Sections 36.1083(c) and (d), Water Code, are repealed. SECTION 7. (a) Section 36.1083, Water Code, as amended by this Act, and Section 36.10835, Water Code, as added by this Act, apply only to a desired future condition adopted by a groundwater conservation district on or after the effective date of this Act. A desired future condition adopted before that date is governed by the law in effect on the date the desired future condition was adopted, and the former law is continued in effect for that purpose. (b) Section 36.1145, Water Code, as added by this Act, applies only to a permit or permit amendment application submitted to a groundwater conservation district on or after the effective date of this Act. A permit or permit amendment application submitted before that date is governed by the law in effect on the date the permit or permit amendment application was submitted, and the former law is continued in effect for that purpose. SECTION 8. This Act takes effect September 1, 2015.