84R14727 T By: Keffer H.B. No. 3813 A BILL TO BE ENTITLED AN ACT relating to the purpose and operation of groundwater conservation districts. 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 state's needs, and utilize the best available science, through rules developed, adopted, and promulgated by a district in accordance with the provisions of this chapter. SECTION 2. Section 36.066, Water Code, is amended by amending subsection (g) and adding a subsection (h) to read as follows: Sec. 36.066. SUITS. (g) If the district prevails in any suit other than a suit in which it voluntarily intervenes, the district may seek and the court may, in the interests of justice and as provided by subsection (h), [shall] grant, in the same action, recovery for attorney's fees, costs for expert witnesses, and other costs incurred by the district before the court. The amount of the attorney's fees shall be fixed by the court. (h) If the district prevails on some, but not all, of the issues in the suit, the court may award attorney's fees and costs only for those issues on which the district prevails. The district has the burden of segregating its attorney's fees and costs in order for the court to make an award. SECTION 3. Section 36.122, Water Code, subsections (a), (b), (c), (e), and (h), are amended to read as follows: Sec. 36.122. EXPORT [TRANSFER] OF GROUNDWATER OUT OF DISTRICT. (a) If an application for a permit or an amendment to a permit under Section 36.113 proposes the export [transfer] of groundwater outside of a district's boundaries, the district may also consider the provisions of this section in determining whether to grant or deny the permit or permit amendment. (b) A district may promulgate rules requiring a person to obtain a permit or an amendment to a permit under Section 36.113 from the district to export [for the transfer of] groundwater [out of the district] to: (1) increase, on or after March 2, 1997, the amount of groundwater to be exported [transferred] under a continuing arrangement in effect before that date; or (2) export [transfer] groundwater [out of the district] on or after March 2, 1997, under a new arrangement. (c) Except as provided in Section 36.113(e), the district may not impose more restrictive permit conditions on exporters [transporters] than the district imposes on existing in-district users. The district may not deny a permit based on the fact that the applicant seeks to export groundwater. A district may not prohibit the export of groundwater. (e) The district may impose an export [a reasonable] fee or surcharge [for an export fee] using one of the following methods: (1) a fee negotiated between the district and the exporter [transporter]; (2) a rate not to exceed the equivalent of the district's tax rate per hundred dollars of valuation for each thousand gallons of water exported from [transferred out of] the district or 2.5 cents per thousand gallons of water, if the district assesses a tax rate of less than 2.5 cents per hundred dollars of valuation; or (3) for a fee-based district, a 50 percent export surcharge, in addition to the district's production fee, for water exported from [transferred out of] the district. (h) In addition to conditions provided by Section 36.1131, the permit shall specify: (1) the amount of water that may be exported from [transferred out of] the district; and (2) the period for which the water may be exported [transferred]. (p) Subsection (e) does not apply to a district that is collecting an export fee or surcharge on March 1, 2001. SECTION 4. Subsections (f), (g), (k), (l), (m), (n), (o), and (q), Section 36.122, Water Code, are repealed. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.