BILL ANALYSIS

Senate Research Center	C.S.S.B. 638
88R23460 MP-F	By: Springer
	Water, Agriculture & Rural Affairs
	4/13/2023
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

As the population of Texas continues to grow, we must secure a water supply for the future to support businesses, drinking water, manufacturing, power production, and other beneficial purposes. Efficient and decisive groundwater management are vital to the continued economic development and prosperity of the state.

The bill prevents a groundwater conservation district from indefinitely delaying a decision on a permit application that has gone through the contested case hearing process by setting a 180-day decision deadline for the district to approve, reject, or modify an administrative law judge's proposal for decision (after which the decision can be appealed to district court).

The bill amends the quorum requirements of groundwater conservation districts (GCDs) to ensure permit applications are taken up without delay due to recusals or absences.

The bill does all this while maintaining a balance between property rights, conservation, and development of groundwater as a precious resource for our state.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 638 amends current law relating to the procedures for acting on a permit or permit amendment application by a groundwater conservation district and the disqualification of board members of groundwater conservation districts.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 36.053, Water Code, as follows:

Sec. 36.053.� QUORUM. Creates an exception under Subsection (b).

(b) Provides that a concurrence of a majority of the directors eligible to vote is sufficient for taking an action on the application for the purposes of making a final decision on a permit or permit amendment application by a board of directors of a groundwater conservation district (board) composed of 10 or more directors.

SECTION 2. Amends Section 36.058, Water Code, as follows:

Sec. 36.058. CONFLICTS OF INTEREST. (a)� Creates this subsection from existing text.

(b) Prohibits a director, if the director is required to file an affidavit under Section 171.004(a) (relating to requiring an official, before a vote or decision on any matter involving a business entity or any real property the official has a substantial interest in, to file an affidavit stating the nature and extent of the interest), from:

(1)� attending a closed meeting related to the matter for which the director is required to file the affidavit; and

(2)� voting on a matter for which the director is required to file the affidavit unless a majority of the directors are also required to file an affidavit related to a similar interest on the same official action.

SECTION 3. Amends Section 36.409, Water Code, as follows:

Sec. 36.409.� CONTINUANCE.� (a) Creates this subsection from existing text.

(b) Creates this subsection from existing text.

(c) Prohibits a continuance from exceeding the time limit for the issuance of a final decision under Section 36.4165 (Final Decision; Contested Case Hearings).

SECTION 4. Amends Section 36.411, Water Code, as follows:

Sec. 36.411.� BOARD ACTION.� (a) Creates this subsection from existing text.

(b) Requires the board to ensure a decision on a permit or permit amendment application is timely rendered in accordance with the provisions set forth in Chapter 36 (Groundwater Conservation Districts).

SECTION 5.� Amends the heading to Section 36.412, Water Code, �to read as follows:

Sec. 36.412. REQUEST FOR REHEARING OR FINDINGS OF FACT AND CONCLUSIONS OF LAW.

SECTION 6. Amends Section 36.412, Water Code, by amending Subsections (a) and (b) and adding Subsections (a-1), (b-1), and (f), as follows:

(a) Authorizes an applicant in a contested or uncontested hearing on an application or a party to a contested hearing to administratively appeal a decision of the board on a permit or permit amendment application by making a request in writing to the board.

(a-1) Requires a party seeking to appeal a decision by the board to request written findings of fact and conclusions of law not later than the 20th day after the date of the board's decision unless the board issued findings of fact and conclusions of law as part of the final decision. Makes nonsubstantive changes.

(b) Requires the board, on receipt of a timely written request under Subsection (a-1), to make written findings of fact and conclusions of law regarding a decision of the board on a permit or permit amendment application. Requires the board to provide certified copies of the findings of fact and conclusions of law to the person who requested them, and to each designated party, not later than the 35th day after the date the board receives the request.

(b-1) Authorizes a party to a contested hearing to request a rehearing not later than the 20th day after the date the board issues the findings of fact and conclusions of law.

(f) Provides that the board is required to consolidate requests for rehearing filed by multiple parties to the contested case hearing, but only one rehearing is authorized to be considered per matter.

SECTION 7. Amends Section 36.4165, Water Code, by adding Subsections (c), (d), (e), (f), and (g), as follows:

(c) Requires that a final decision issued by the board under this section be in writing and either adopt the proposed findings of fact and conclusions of law as proposed by the administrative law judge or include revised findings of fact and conclusions of law consistent with Subsection (b).

(d) Requires a board, notwithstanding any other law, to issue a final decision under this section not later than the 180th day after the date of receipt of the final proposal for decision from the State Office of Administrative Hearings. Authorizes the deadline to be extended if all parties agree to the extension.

(e) Requires a board, notwithstanding any other law, if a motion for rehearing is filed and granted by the board under Section 36.412, to make a final decision on the application not later than the 90th day after the date of the decision by the board that was subject to the motion for rehearing.

(f) Provides that a board is considered to have adopted a final proposal for decision of the administrative law judge as a final order on the 181st day after the date the administrative law judge issued the final proposal for decision if the board has not issued a final decision by:

(1) adopting the findings of fact and conclusions of law as proposed by the administrative law judge; or

(2) issuing revised findings of fact and conclusions of law as provided by Subsection (b).

(g) Provides that a proposal for decision adopted under Subsection (f) is final, immediately appealable, and not subject to a request for rehearing.

SECTION 8. Makes application of this Act prospective.

SECTION 9. Effective date: upon passage or September 1, 2023.