85R14866 GRM-D By: Bell H.B. No. 4274 A BILL TO BE ENTITLED AN ACT relating to the Lone Star Groundwater Conservation District's groundwater reduction plan. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 1321, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Section 13A to read as follows: Sec. 13A. GROUNDWATER REDUCTION PLAN. (a) If the district implements a groundwater reduction plan to reduce use of groundwater throughout the district, the plan shall require that an entity that participates in the plan follow the accounting practices described in this section. (b) If transferable credits are used to comply with the groundwater reduction plan, the entity administering the transferable credits: (1) must: (A) provide a credit for a user that produces a volume of groundwater below the minimum production volume established under the groundwater reduction plan; (B) calculate the credit required by Paragraph (A) based on the volume of groundwater that falls below the minimum production volume; and (C) apply the credit calculated under Paragraph (B) to the account of the user; and (2) may not assess usage charges or fees in excess of the minimum usage fee before the credit described by Subdivision (1) is exhausted. (c) A credit required by Subsection (b) may not expire. SECTION 2. The changes in law made by this Act apply only to a charge or fee assessed under a groundwater reduction plan on or after the effective date of this Act. A fee or charge assessed under a groundwater reduction plan before the effective date of this Act is governed by the law in effect when the charge or fee was assessed, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2017.