Texas 2017 85th Regular

Texas Senate Bill SB1392 Introduced / Bill

Filed 03/07/2017

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                    85R961 AAF-F
 By: Perry S.B. No. 1392


 A BILL TO BE ENTITLED
 AN ACT
 relating to groundwater conservation districts.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 36.001, Water Code, is amended by
 amending Subdivisions (25) and (30) and adding Subdivision (32) to
 read as follows:
 (25)  "Modeled available groundwater" means the total
 amount of water within a common reservoir that the executive
 administrator determines may be produced on an average annual basis
 to achieve a desired future condition established under Section
 36.108.
 (30)  "Desired future condition" means a quantitative
 description, adopted in accordance with Section 36.108, of the
 desired condition of a common reservoir [the groundwater resources]
 in a management area at one or more specified future times.
 (32)  "Common reservoir" means an aquifer or
 subdivision of a groundwater reservoir delineated in conjunction
 with a management area under Section 36.108.
 SECTION 2.  Section 36.0015(b), Water Code, is amended to
 read as follows:
 (b)  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:
 (1)  protect property rights;
 (2)  [,] balance the conservation and provide for the
 orderly development of groundwater to meet the needs of this state;
 (3)  [, and] use the best available science;
 (4)  treat each groundwater owner overlying a common
 reservoir fairly; and
 (5)  act jointly with other groundwater conservation
 districts [in the conservation and development of groundwater]
 through common rules developed, adopted, and promulgated by those
 districts [a district] in accordance with the provisions of this
 chapter.
 SECTION 3.  Sections 36.002(a), (b), and (d), Water Code,
 are amended to read as follows:
 (a)  A [The legislature recognizes that a] landowner owns the
 groundwater below the surface of the landowner's land as real
 property.
 (b)  The groundwater ownership and rights described by this
 section entitle the landowner, including a landowner's lessees,
 heirs, or assigns, to:
 (1)  drill for and produce the groundwater below the
 surface of real property, subject to Subsection (d), without
 causing waste or malicious drainage of other property or
 negligently causing subsidence; [and]
 (2)  the right to use produced groundwater for a
 beneficial use without causing waste; and
 (3)  [have] any other right recognized under common
 law.
 (d)  This section does not:
 (1)  prohibit a district from limiting or prohibiting
 the drilling of a well by a landowner for failure or inability to
 comply with minimum well spacing or tract size requirements or with
 production limits based on the amount of land owned by the landowner
 adopted by the district;
 (2)  affect the ability of a district to regulate
 groundwater production as authorized under Section 36.113, 36.116,
 or 36.122 or otherwise under this chapter or a special law governing
 a district; or
 (3)  require that a rule adopted by a district allocate
 to each landowner a proportionate share of available groundwater
 for production from the aquifer based on the number of acres owned
 by the landowner.
 SECTION 4.  Section 36.020(a), Water Code, is amended to
 read as follows:
 (a)  At an election to create a district, the temporary
 directors may include a proposition for the issuance of bonds or
 notes, the levy of taxes to retire all or part of the bonds or notes,
 and the levy of a maintenance tax. The maintenance tax rate may not
 exceed 37.5 [50] cents on each $100 of assessed valuation.
 SECTION 5.  Section 36.051, Water Code, is amended by adding
 Subsection (b-1) to read as follows:
 (b-1)  A representative or employee of the governing body of
 a river authority is ineligible for appointment or election as a
 director.
 SECTION 6.  Section 36.062, Water Code, is amended to read as
 follows:
 Sec. 36.062.  OFFICES AND MEETING PLACES.  (a)  The board
 shall designate from time to time and maintain one or more regular
 offices for conducting the business of the district and maintaining
 the records of the district. Such offices must be reasonably
 accessible to the public and may be located either inside or outside
 the district's boundaries as determined in the discretion of the
 board.
 (b)  The board shall designate one or more places reasonably
 accessible to members of the public who reside in the district
 inside or outside the district for conducting the meetings of the
 board.
 SECTION 7.  Sections 36.101(a) and (c), Water Code, are
 amended to read as follows:
 (a)  A district shall adopt [may make] and enforce rules,
 including rules limiting groundwater production based on tract size
 or the spacing of wells, to provide for conserving, preserving,
 protecting, and recharging of the groundwater or of a groundwater
 reservoir or its subdivisions in order to control subsidence,
 prevent degradation of water quality, or prevent waste of
 groundwater and to carry out the powers and duties provided by this
 chapter.  In adopting a rule under this chapter, a district shall:
 (1)  [consider all groundwater uses and needs;
 [(2)]  develop rules that are fair and impartial;
 (2) [(3)]  consider the groundwater ownership and
 rights described by Section 36.002;
 (3) [(4)     consider the public interest in
 conservation, preservation, protection, recharging, and prevention
 of waste of groundwater, and of groundwater reservoirs or their
 subdivisions, and in controlling subsidence caused by withdrawal of
 groundwater from those groundwater reservoirs or their
 subdivisions, consistent with the objectives of Section 59, Article
 XVI, Texas Constitution;
 [(5)]  consider the goals developed as part of the
 district's management plan under Section 36.1071; and
 (4) [(6)]  not discriminate based on:
 (A)  the prior use of groundwater; or
 (B)  whether the proposed groundwater use is
 inside or outside of the district [between land that is irrigated
 for production and land that was irrigated for production and
 enrolled or participating in a federal conservation program].
 (c)  The board shall compile its rules and make them
 available for use and inspection at each of the district's offices
 [principal office].
 SECTION 8.  Sections 36.1071(e), (f), and (h), Water Code,
 are amended to read as follows:
 (e)  In the management plan described under Subsection (a),
 the district shall:
 (1)  identify the performance standards and management
 objectives under which the district will operate to achieve the
 management goals identified under Subsection (a);
 (2)  specify, in as much detail as possible, the
 actions, procedures, performance, and avoidance that are or may be
 necessary to effect the plan, including specifications and proposed
 rules;
 (3)  for each common reservoir designated under Section
 36.108, include estimates of the following:
 (A)  modeled available groundwater in the common
 reservoir [district] based on the desired future condition
 established under Section 36.108;
 (B)  the amount of groundwater from the common
 reservoir being used [within the district] on an annual basis;
 (C)  the annual amount of recharge from
 precipitation, if any, to the groundwater resources of the common
 reservoir [within the district];
 (D)  [for each aquifer,] the estimated annual
 volume of water that discharges from:
 (i)  the common reservoir [aquifer] to
 springs and any surface water bodies, including lakes, streams, and
 rivers; and
 (ii)  evaporation or transpiration; and
 (E)  the annual volume of lateral and vertical
 flow into and out of each common reservoir and any adjoining common
 reservoir [the district within each aquifer and between aquifers in
 the district, if a groundwater availability model is available];
 [(F)     the projected surface water supply in the
 district according to the most recently adopted state water plan;
 and
 [(G)     the projected total demand for water in the
 district according to the most recently adopted state water plan;]
 and
 (4)  identify each common reservoir jointly managed by
 the district under Section 36.108 [consider the water supply needs
 and water management strategies included in the adopted state water
 plan].
 (f)  The district shall adopt rules necessary to implement
 the management plan.  Prior to the development of the management
 plan and its approval under Section 36.1072, the district may not
 adopt rules other than rules pertaining to the registration and
 interim permitting of new and existing wells and rules governing
 spacing and procedure before the district's board; however, the
 district may not adopt any rules limiting the production of wells,
 except rules requiring that groundwater produced from a well be put
 to a nonwasteful, beneficial use.  [The district may accept
 applications for permits under Section 36.113, provided the
 district does not act on any such application until the district's
 management plan is approved as provided in Section 36.1072.]
 (h)  In developing its management plan, the district shall
 use:
 (1)  the groundwater availability modeling information
 provided by the executive administrator;
 (2)  [together with] any available site-specific
 information that has been provided by the district to the executive
 administrator for review and comment before being used in the plan;
 and
 (3)  the designation of the appropriate common
 reservoir within a management area under Section 36.108.
 SECTION 9.  Sections 36.108(c), (d), (d-1), (d-2), (d-3),
 and (d-4), Water Code, are amended to read as follows:
 (c)  The district representatives shall meet at least
 annually to conduct joint planning with the other districts in the
 management area [and to review the management plans, the
 accomplishments of the management area, and proposals to adopt new
 or amend existing desired future conditions]. In conducting joint
 planning, [reviewing the management plans, the] districts shall
 consider:
 (1)  the boundaries of each common reservoir in [goals
 of each management plan and its impact on planning throughout] the
 management area;
 (2)  the effectiveness of the measures established by
 each district's management plan generally in the management area
 and specifically for:
 (A)  conserving and protecting groundwater; and
 (B)  preventing waste[, and the effectiveness of
 these measures in the management area generally];
 (3)  any other matters that the boards consider
 relevant to the protection and conservation of groundwater and the
 prevention of waste in the management area; and
 (4)  the degree to which [each management plan
 achieves] the desired future conditions in the management area are
 being achieved [established during the joint planning process].
 (d)  Not later than September 1, 2010, and every five years
 thereafter, the districts shall consider groundwater availability
 models, groundwater monitoring data, and other data or information
 for the management area and shall propose for adoption desired
 future conditions for the relevant aquifers within the management
 area.  Before voting on the proposed desired future conditions of
 the aquifers under Subsection (d-2), the districts shall consider:
 (1)  [aquifer uses or conditions within the management
 area, including conditions that differ substantially from one
 geographic area to another;
 [(2)]  the water supply needs and water management
 strategies included in the state water plan;
 (2) [(3)]  hydrological conditions that affect
 groundwater, including for each common reservoir [aquifer] in the
 management area the total estimated recoverable storage as provided
 by the executive administrator, and the average annual recharge,
 inflows, and discharge;
 (3) [(4)]  other environmental impacts, including
 impacts on spring flow and other interactions between groundwater
 and surface water;
 (4) [(5)]  the impact on subsidence;
 (5) [(6)     socioeconomic impacts reasonably expected to
 occur;
 [(7)]  the impact on the interests and rights in
 private property, including ownership and the rights of management
 area landowners and their lessees and assigns in groundwater as
 recognized under Section 36.002;
 (6) [(8)]  the feasibility of achieving the desired
 future condition and the degree to which any previously adopted
 desired future condition is being achieved; and
 (7) [(9)]  any other information relevant to the
 specific desired future conditions.
 (d-1)  After considering and documenting the factors
 described by Subsection (d) and other relevant scientific and
 hydrogeological data, the districts may establish different
 desired future conditions for[:
 [(1)]  each common reservoir [aquifer, subdivision of
 an aquifer, or geologic strata] located in whole or in part within
 the boundaries of the management area[; or
 [(2)     each geographic area overlying an aquifer in
 whole or in part or subdivision of an aquifer within the boundaries
 of the management area].
 (d-2)  The desired future conditions proposed under
 Subsection (d) must provide a balance between the highest
 practicable level of groundwater production and the conservation,
 preservation, protection, recharging, and prevention of waste of
 groundwater and control of subsidence in each common reservoir in
 the management area. This subsection does not prohibit the
 establishment of desired future conditions that provide for the
 reasonable long-term management of groundwater resources
 consistent with the management goals under Section 36.1071(a). The
 desired future conditions proposed under Subsection (d) must be
 approved by a two-thirds vote of all the district representatives
 for distribution to the districts in the management area. A period
 of not less than 90 days for public comments begins on the day the
 proposed desired future conditions are mailed to the districts.
 During the public comment period and after posting notice as
 required by Section 36.063, each district shall hold a public
 hearing on any proposed desired future conditions relevant to that
 district. During the public comment period, the district shall
 make available in its office a copy of the proposed desired future
 conditions and any supporting materials, such as the documentation
 of factors considered under Subsection (d) [and groundwater
 availability model run results]. After the public hearing, the
 district shall compile for consideration at the next joint planning
 meeting a summary of relevant comments received, any suggested
 revisions to the proposed desired future conditions, and the basis
 for the revisions.
 (d-3)  After the earlier of the date on which all the
 districts have submitted their district summaries or the expiration
 of the public comment period under Subsection (d-2), the district
 representatives shall reconvene to review the reports, consider any
 district's suggested revisions to the proposed desired future
 conditions, and finally adopt the desired future conditions for the
 management area. The desired future conditions must be approved by
 [adopted as] a resolution adopted by a two-thirds vote of all the
 district representatives not later than the 60th day after the date
 the public comment period expires. Not later than the 120th day
 after the expiration of the public comment period, the [The]
 district representatives shall produce a desired future conditions
 explanatory report for the management area and submit to the
 development board and each district in the management area proof
 that notice was posted for the joint planning meeting, a copy of the
 resolution, and a copy of the explanatory report. The report must:
 (1)  identify each desired future condition and each
 common reservoir to which the condition applies;
 (2)  provide the policy and technical justifications
 for each desired future condition;
 (3)  include documentation that the factors under
 Subsection (d) were considered by the districts and a discussion of
 how the adopted desired future conditions impact each factor;
 (4)  list other desired future condition options
 considered, if any, and the reasons why those options were not
 adopted; and
 (5)  discuss reasons why recommendations made by
 advisory committees and relevant public comments received by the
 districts were or were not incorporated into the desired future
 conditions.
 (d-4)  Not later than 120th day after the date the public
 comment period expires, the district shall submit the explanatory
 report under Subsection (d-3) to the development board and [As soon
 as possible after a district receives the desired future conditions
 resolution and explanatory report under Subsection (d-3), the
 district shall] adopt the desired future conditions in the
 resolution required by Subsection (d-3) and the explanatory report
 that apply to the district.
 SECTION 10.  Section 36.1083(e), Water Code, is amended to
 read as follows:
 (e)  Not later than the 10th day after receiving a petition
 described by Subsection (b), the district shall submit a copy of the
 petition to the development board and to each district overlying
 any part of the applicable common reservoir. On receipt of the
 petition, the development board shall conduct:
 (1)  an administrative review to determine whether the
 desired future condition established by the district meets the
 criteria in Section 36.108(d); and
 (2)  a study containing scientific and technical
 analysis of the desired future condition, including consideration
 of:
 (A)  the hydrogeology of the common reservoir,
 including the identification and determination of boundaries of
 each common reservoir in the management area [aquifer];
 (B)  the explanatory report provided to the
 development board under Section 36.108(d-3);
 (C)  the factors described under Section
 36.108(d); and
 (D)  any relevant:
 (i)  groundwater availability models;
 (ii)  published studies;
 (iii)  estimates of total recoverable
 storage capacity;
 (iv)  average annual amounts of recharge,
 inflows, and discharge of groundwater; or
 (v)  information provided in the petition or
 available to the development board.
 SECTION 11.  Section 36.1084(b), Water Code, is amended to
 read as follows:
 (b)  The executive administrator shall provide each district
 and regional water planning group located wholly or partly in the
 management area with the modeled available groundwater in the
 management area based upon the desired future conditions adopted by
 the districts. The modeled available groundwater must be reported
 as the total available groundwater for each common reservoir
 identified under Section 36.108.
 SECTION 12.  Sections 36.1085 and 36.1086, Water Code, are
 amended to read as follows:
 Sec. 36.1085.  MANAGEMENT PLAN GOALS AND OBJECTIVES. Each
 district in the management area shall ensure that its management
 plan contains goals and objectives consistent with achieving the
 desired future conditions of the relevant common reservoirs
 [aquifers] as adopted during the joint planning process.
 Sec. 36.1086.  JOINT EFFORTS BY DISTRICTS IN A MANAGEMENT
 AREA. Districts located within the same management areas or in
 adjacent management areas may contract to jointly conduct studies
 or research, or to construct projects, under terms and conditions
 that the districts consider beneficial. These joint efforts may
 include studies of groundwater availability and quality, aquifer
 modeling, aquifer monitoring, and the interaction of groundwater
 and surface water; educational programs; the purchase and sharing
 of equipment; and the implementation of projects to make
 groundwater available, including aquifer recharge, brush control,
 weather modification, desalination, regionalization, and treatment
 or conveyance facilities. The districts may contract under their
 existing authorizations including those of Chapter 791, Government
 Code, if their contracting authority is not limited by Sections
 791.011(c)(2) and (d)(3) and Section 791.014, Government Code.
 SECTION 13.  Section 36.113(d), Water Code, is amended to
 read as follows:
 (d)  This subsection does not apply to the renewal of an
 operating permit issued under Section 36.1145. Before granting or
 denying a permit, or a permit amendment issued in accordance with
 Section 36.1146, the district shall consider whether:
 (1)  the application conforms to the requirements
 prescribed by this chapter and is accompanied by the prescribed
 fees;
 (2)  for each water well, the proposed spacing of the
 wells conforms to the district's rules regulating the spacing of
 wells under Section 36.116;
 (3)  the proposed use of water unreasonably affects
 existing groundwater and surface water resources or existing permit
 holders;
 (4) [(3)]  the proposed annual production of the well
 conforms to the district's rules regulating the groundwater
 production of wells under Section 36.116;
 (5)  the proposed use of water is dedicated to any
 beneficial use;
 (6) [(4)     the proposed use of water is consistent with
 the district's approved management plan;
 [(5)]  if the well will be located in the Hill Country
 Priority Groundwater Management Area, the proposed use of water
 from the well is wholly or partly to provide water to a pond, lake,
 or reservoir to enhance the appearance of the landscape;
 (7) [(6)]  the applicant has agreed to avoid waste and
 achieve water conservation; and
 (8) [(7)]  the applicant has agreed that reasonable
 diligence will be used to protect groundwater quality and that the
 applicant will follow well plugging guidelines at the time of well
 closure.
 SECTION 14.  Section 36.1131(b), Water Code, is amended to
 read as follows:
 (b)  The permit may include:
 (1)  the name and address of the person to whom the
 permit is issued;
 (2)  the location of the well;
 (3)  the date the permit is to expire if no well is
 drilled;
 (4)  a statement of the purpose for which the well is to
 be used;
 (5)  a requirement that the water withdrawn under the
 permit be put to beneficial use at all times;
 (6)  the location of the use of the water from the well;
 (7)  a water well closure plan or a declaration that the
 applicant will comply with well plugging guidelines and report
 closure to the commission;
 (8)  the conditions and restrictions[, if any,] placed
 by district rules adopted under Section 36.116 on the rate and
 amount of withdrawal;
 (9)  any conservation-oriented methods of drilling and
 operating prescribed by the district;
 (10)  a drought contingency plan prescribed by the
 district; and
 (11)  other terms and conditions as provided by Section
 36.113.
 SECTION 15.  The heading to Section 36.1132, Water Code, is
 amended to read as follows:
 Sec. 36.1132.  DISTRICT MANAGEMENT TO ACHIEVE DESIRED FUTURE
 CONDITIONS [PERMITS BASED ON MODELED AVAILABLE GROUNDWATER].
 SECTION 16.  Section 36.1132, Water Code, is amended by
 amending Subsections (b) and (c) and adding Subsections (b-1) and
 (d) to read as follows:
 (b)  In issuing permits, each [the] district overlying a
 common reservoir shall jointly manage [total] groundwater
 production on a long-term basis to achieve an applicable desired
 future condition by [and consider]:
 (1)  adopting common rules on the spacing of water
 wells and groundwater production as provided by Section 36.116;
 (2)  considering the modeled available groundwater
 determined by the executive administrator;
 (3)  monitoring groundwater conditions, including
 groundwater levels, in each common reservoir with a desired future
 condition in the district and, at least every two years, providing
 the collected monitoring data to other districts overlying the
 common reservoir;
 (4)  preparing a report on the degree to which the
 desired future conditions are being achieved in the one-year period
 after the collection of monitoring data from a common reservoir and
 the relevant desired future conditions; and
 (5)  participating in a joint groundwater management
 hearing if the report prepared under Subsection (b)(4) indicates
 the desired future conditions are not being achieved.
 (b-1)  The joint groundwater management hearing held under
 Subsection (b)(5) must include a public comment period on the
 desired future conditions. During the joint groundwater management
 hearing, the districts shall consider:
 (1) [(2)]  the executive administrator's estimate of
 the current and projected amount of groundwater produced in the
 common reservoir under exemptions granted by district rules and
 Section 36.117;
 (2) [(3)]  the amount of groundwater authorized under
 permits previously issued by the districts overlying the common
 reservoir [district];
 (3)  the potential use of groundwater in the common
 reservoir;
 (4)  an [a reasonable] estimate of the amount of
 groundwater that is actually produced from the common reservoir
 under permits issued by the districts [district]; and
 (5)  yearly precipitation and production patterns.
 (c)  In developing the estimate of exempt use under
 Subsection (b-1)(1) [(b)(2)], the executive administrator shall
 solicit information from each applicable district overlying the
 common reservoir.
 (d)  Not later than the first anniversary of the date of the
 readoption of a desired future condition that is not being
 achieved, the applicable districts shall adopt new common rules
 under Section 36.116. The new rules shall immediately apply to all
 new permit applications submitted to a district. The districts
 shall adopt rules indicating when all existing permits must comply
 with the new rules to achieve the desired future condition.
 SECTION 17.  Sections 36.114(a) and (h), Water Code, are
 amended to read as follows:
 (a)  The district by rule shall require [determine each
 activity regulated by the district for which] a permit or permit
 amendment for:
 (1)  drilling a new or replacement well;
 (2)  increasing the instantaneous peak production rate
 of a well or well system permit;
 (3)  increasing the authorized annual production
 volume of a well or well system permit; and
 (4)  changing the designated use of water produced
 under an existing well or well system permit [is required].
 (h)  The district shall determine if an application is
 administratively complete not later than the 30th day after the
 date the district receives the application.  An administratively
 complete application requires information set forth in accordance
 with Sections 36.113 and 36.1131.
 SECTION 18.  Sections 36.116(a), (b), (d), and (e), Water
 Code, are amended to read as follows:
 (a)  In order to minimize as far as practicable the drawdown
 of the water table or the reduction of artesian pressure, to control
 subsidence, to prevent interference between wells, to prevent
 degradation of water quality, or to prevent waste, a district by
 rule may regulate:
 (1)  the spacing of water wells by:
 (A)  requiring all water wells to be spaced a
 certain distance from property lines or adjoining wells; or
 (B)  requiring wells with a certain production
 capacity, pump size, or other characteristic related to the
 construction or operation of and production from a well to be spaced
 a certain distance from property lines or adjoining wells; [or
 [(C)     imposing spacing requirements adopted by
 the board;] and
 (2)  the production of groundwater by:
 (A)  setting production limits on wells;
 (B)  limiting the amount of water produced based
 on acreage or tract size;
 (C)  limiting the amount of water that may be
 produced from a defined number of acres assigned to an authorized
 well site;
 (D)  limiting the maximum amount of water that may
 be produced on the basis of acre-feet per acre or gallons per minute
 per well site per acre;
 (E)  managed depletion; or
 (F)  any combination of the methods listed above
 in Paragraphs (A) through (E).
 (b)  In promulgating any rules limiting groundwater
 production, a [the] district shall maintain well spacing or
 groundwater production allocation [may preserve historic or]
 existing [use] before the effective date of the rules to the maximum
 extent practicable [consistent with the district's management plan
 under Section 36.1071 and as provided by Section 36.113].
 (d)  For proper [better] management of the groundwater
 resources located in a common reservoir, each district overlying a
 common reservoir that is under joint management under Section
 36.108 shall adopt common rules for regulation of groundwater
 production [district or if a district determines that conditions in
 or use of an aquifer differ substantially from one geographic area
 of the district to another, the district may adopt different rules
 for:
 [(1)     each aquifer, subdivision of an aquifer, or
 geologic strata located in whole or in part within the boundaries of
 the district; or
 [(2)     each geographic area overlying an aquifer or
 subdivision of an aquifer located in whole or in part within the
 boundaries of the district].
 (e)  In regulating the production of groundwater under
 Subsection (a)(2), a district[:
 [(1)]  shall select a method that is appropriate based
 on the hydrogeological conditions of the aquifer or aquifers in the
 district[; and
 [(2)     may limit the amount of water produced based on
 contiguous surface acreage].
 SECTION 19.  Sections 36.122(a), (g), (h), (i), and (q),
 Water Code, are amended to read as follows:
 (a)  The right to export groundwater is of equal dignity with
 the right to produce groundwater.  If an application for a permit or
 an amendment to a permit under Section 36.113 proposes the transfer
 of groundwater outside of a district's boundaries, the district may
 not impose more restrictive permit conditions on persons who will
 transfer groundwater than the permit conditions the district
 imposes on persons who will use groundwater in the district [also
 consider the provisions of this section in determining whether to
 grant or deny the permit or permit amendment].
 (g)  The district may not deny a permit based on the fact that
 the applicant seeks to transfer groundwater outside of the district
 [but may limit a permit issued under this section if conditions in
 Subsection (f) warrant the limitation, subject to Subsection (c)].
 (h)  In addition to conditions provided by Section 36.1131,
 the permit shall specify:
 (1)  the maximum amount of water that may be
 transferred out of the district; and
 (2)  the period for which the water may be transferred.
 (i)  The period specified by Subsection (h)(2) shall be[:
 [(1)     at least three years if construction of a
 conveyance system has not been initiated prior to the issuance of
 the permit; or
 [(2)]  at least 30 years unless the applicant requests
 a shorter period [if construction of a conveyance system has been
 initiated prior to the issuance of the permit].
 (q)  In applying this section, a district must be fair,
 impartial, and nondiscriminatory between the transfer of
 groundwater outside of the district's boundaries and the use of
 groundwater in the district.
 SECTION 20.  Section 36.201(b), Water Code, is amended to
 read as follows:
 (b)  The board may annually levy taxes to pay the maintenance
 and operating expenses of the district at a rate not to exceed 37.5
 [50] cents on each $100 of assessed valuation.
 SECTION 21.  Section 36.205(f), Water Code, is amended to
 read as follows:
 (f)  A district[, including a district described under
 Subsection (d),] may assess a production fee under Subsection (c)
 and an export fee under Subsection (g), if applicable, for any water
 produced under an exemption under Section 36.117 if that water is
 subsequently sold to another person.
 SECTION 22.  Section 36.207, Water Code, is amended to read
 as follows:
 Sec. 36.207.  USE OF FEES.  (a)  A district may use funds
 obtained from administrative or[,] production[, or export] fees
 collected under a special law governing the district or this
 chapter for any purpose consistent with the district's approved
 management plan, including, without limitation, making grants,
 loans, or contractual payments to achieve, facilitate, or expedite
 reductions in groundwater pumping or the development or
 distribution of alternative water supplies.
 (b)  A district may use funds obtained from export fees
 collected under a special law governing the district or this
 chapter only to:
 (1)  enhance aquifer monitoring, modeling, and data
 collection and to enhance research on the advancement of the
 scientific understanding of a district's groundwater resources; or
 (2)  issue payments to existing permit holders in the
 district.
 (c)  If a district issues payments to existing permit holders
 under Subsection (b)(2), the district shall by rule determine the
 amount of a payment to a permit holder based on a pro rata share of:
 (1)  the acreage of the permit holder's tract of land on
 which the permit holder's well is located; or
 (2)  the drainable volume of groundwater in the aquifer
 under the permit holder's tract of land.
 SECTION 23.  Sections 36.4051(a) and (d), Water Code, are
 amended to read as follows:
 (a)  The board may take action on any uncontested application
 at a properly noticed public meeting held at any time after the
 public hearing at which the application is scheduled to be heard.
 The board may issue a written order to[:
 [(1)]  grant [the application;
 [(2)  grant the application with special conditions;]
 or
 [(3)]  deny the application.
 (d)  An applicant may, not later than the 20th day after the
 date the board issues an order granting the application, demand a
 contested case hearing [if the order:
 [(1)     includes special conditions that were not part of
 the application as finally submitted; or
 [(2)     grants a maximum amount of groundwater production
 that is less than the amount requested in the application].
 SECTION 24.  Section 8810.103(b), Special District Local
 Laws Code, is amended to read as follows:
 (b)  Sections 36.122(e) and [36.122(c), (e),] (i)[, and
 (j)], Water Code, do not apply to a requirement or limitation
 imposed under this section.
 SECTION 25.  Section 8824.101, Special District Local Laws
 Code, is amended to read as follows:
 Sec. 8824.101.  RESTRICTIONS ON GENERAL POWERS. Section
 [Sections] 36.103 [and 36.104], Water Code, does [do] not apply to
 the district.
 SECTION 26.  Section 8852.104(c), Special District Local
 Laws Code, is amended to read as follows:
 (c)  Section 36.122(i) [Sections 36.122(c), (i), and (j)],
 Water Code, does [do] not apply to a requirement or limitation
 imposed under this section.
 SECTION 27.  Section 11002.112, Special District Local Laws
 Code, is amended to read as follows:
 Sec. 11002.112.  GROUNDWATER REGULATION.  [Section 36.121,
 Water Code, does not apply to a groundwater well owned or used by
 the district within the boundaries of the Brewster County
 Groundwater Conservation District.]  The rules of the Brewster
 County Groundwater Conservation District govern a groundwater well
 owned or used by the district within the Brewster County
 Groundwater Conservation District.
 SECTION 28.  The following provisions of the Special
 District Local Laws Code are repealed:
 (1)  Section 8837.006(b);
 (2)  Section 8851.103;
 (3)  Section 8852.108;
 (4)  Section 8867.102; and
 (5)  Section 8876.005(b).
 SECTION 29.  The following provisions of the Water Code are
 repealed:
 (1)  Section 36.001(29);
 (2)  Section 36.001(31), as added by Chapter 415 (H.B.
 2767), Acts of the 84th Legislature, Regular Session, 2015;
 (3)  Section 36.002(b-1);
 (4)  Sections 36.0151(f) and (g);
 (5)  Section 36.101(a-1);
 (6)  Section 36.104;
 (7)  Section 36.1072(g);
 (8)  Section 36.108(d-5);
 (9)  Sections 36.113(f), (h), and (i);
 (10)  Section 36.121;
 (11)  Sections 36.122(b), (c), (j), (m), and (n); and
 (12)  Section 36.205(d).
 SECTION 30.  As soon as practicable after the effective date
 of this Act, each groundwater conservation district shall adopt
 rules as necessary to implement the changes in law made by this Act.
 SECTION 31.  The changes in law made by this Act apply only
 to an application for a permit or a permit amendment that is
 received by a groundwater conservation district on or after the
 effective date of this Act.  An application for a permit or permit
 amendment that is received before the effective date of this Act is
 governed by the law in effect on the date the application is
 received, and that law is continued in effect for that purpose.
 SECTION 32.  The changes in law made by this Act apply only
 to a suit involving a groundwater conservation district that is
 filed on or after the effective date of this Act. A suit filed
 before the effective date of this Act is subject to the law in
 effect on the date the suit is filed, and that law is continued in
 effect for that purpose.
 SECTION 33.  This Act takes effect September 1, 2017.