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               AN ACT
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            relating to the procedures for acting on a permit or permit  | 
         
         
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            amendment application by a groundwater conservation district and  | 
         
         
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            the disqualification of board members of groundwater conservation  | 
         
         
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            districts. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Section 36.053, Water Code, is amended to read as  | 
         
         
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            follows: | 
         
         
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                   Sec. 36.053.  QUORUM.  (a)  Except as provided by Subsection  | 
         
         
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            (b), a [A] majority of the membership of the board constitutes a  | 
         
         
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            quorum for any meeting, and a concurrence of a majority of the  | 
         
         
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            entire membership of the board is sufficient for transacting any  | 
         
         
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            business of the district. | 
         
         
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                   (b)  For the purposes of making a final decision on a permit  | 
         
         
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            or permit amendment application by a board composed of 10 or more  | 
         
         
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            directors, a concurrence of a majority of the directors eligible to  | 
         
         
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            vote is sufficient for taking an action on the application. | 
         
         
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                   SECTION 2.  Section 36.058, Water Code, is amended to read as  | 
         
         
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            follows: | 
         
         
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                   Sec. 36.058.  CONFLICTS OF INTEREST.  (a)  A director of a  | 
         
         
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            district is subject to the provisions of Chapters 171 and 176, Local  | 
         
         
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            Government Code, relating to the regulation of conflicts of  | 
         
         
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            officers of local governments. | 
         
         
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                   (b)  If a director is required to file an affidavit under  | 
         
         
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            Section 171.004(a), Local Government Code, the director may not: | 
         
         
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                         (1)  attend a closed meeting related to the matter for  | 
         
         
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            which the director is required to file the affidavit; and | 
         
         
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                         (2)  vote on a matter for which the director is required  | 
         
         
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            to file the affidavit unless a majority of the directors are also  | 
         
         
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            required to file an affidavit related to a similar interest on the  | 
         
         
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            same official action. | 
         
         
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                   SECTION 3.  Section 36.409, Water Code, is amended to read as  | 
         
         
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            follows: | 
         
         
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                   Sec. 36.409.  CONTINUANCE.  (a)  The presiding officer may  | 
         
         
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            continue a hearing from time to time and from place to place without  | 
         
         
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            providing notice under Section 36.404. | 
         
         
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                   (b)  If the presiding officer continues a hearing without  | 
         
         
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            announcing at the hearing the time, date, and location of the  | 
         
         
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            continued hearing, the presiding officer must provide notice of the  | 
         
         
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            continued hearing by regular mail to the parties. | 
         
         
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                   (c)  A continuance may not exceed the time limit for the  | 
         
         
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            issuance of a final decision under Section 36.4165. | 
         
         
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                   SECTION 4.  Section 36.411, Water Code, is amended to read as  | 
         
         
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            follows: | 
         
         
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                   Sec. 36.411.  BOARD ACTION.  (a) The board shall act on a  | 
         
         
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            permit or permit amendment application not later than the 60th day  | 
         
         
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            after the date the final hearing on the application is concluded. | 
         
         
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                   (b)  The board shall ensure a decision on a permit or permit  | 
         
         
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            amendment application is timely rendered in accordance with the  | 
         
         
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            provisions set forth in this chapter. | 
         
         
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                   SECTION 5.  The heading to Section 36.412, Water Code, is  | 
         
         
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            amended to read as follows: | 
         
         
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                   Sec. 36.412.  REQUEST FOR REHEARING OR FINDINGS OF FACT AND  | 
         
         
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            CONCLUSIONS OF LAW. | 
         
         
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                   SECTION 6.  Section 36.412, Water Code, is amended by  | 
         
         
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            amending Subsections (a) and (b) and adding Subsections (a-1),  | 
         
         
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            (b-1), and (f) to read as follows: | 
         
         
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                   (a)  An applicant in a contested or uncontested hearing on an  | 
         
         
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            application or a party to a contested hearing may administratively  | 
         
         
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            appeal a decision of the board on a permit or permit amendment  | 
         
         
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            application by making a request in writing to the board. | 
         
         
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                   (a-1)  A party seeking to appeal a decision by the board must  | 
         
         
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            request [by requesting] written findings of fact and conclusions of  | 
         
         
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            law not later than the 20th day after the date of the board's  | 
         
         
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            decision unless the board issued findings of fact and conclusions  | 
         
         
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            of law as part of the final decision. | 
         
         
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                   (b)  On receipt of a timely written request under Subsection  | 
         
         
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            (a-1), the board shall make written findings of fact and  | 
         
         
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            conclusions of law regarding a decision of the board on a permit or  | 
         
         
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            permit amendment application.  The board shall provide certified  | 
         
         
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            copies of the findings of fact and conclusions of law to the person  | 
         
         
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            who requested them, and to each designated party, not later than the  | 
         
         
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            35th day after the date the board receives the request. | 
         
         
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                   (b-1)  A party to a contested hearing may request a rehearing  | 
         
         
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            not later than the 20th day after the date the board issues the  | 
         
         
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            findings of fact and conclusions of law. | 
         
         
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                   (f)  The board shall consolidate requests for rehearing  | 
         
         
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            filed by multiple parties to the contested case hearing, but only  | 
         
         
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            one rehearing may be considered per matter. | 
         
         
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                   SECTION 7.  Section 36.4165, Water Code, is amended by  | 
         
         
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            adding Subsections (c), (d), (e), (f), and (g) to read as follows: | 
         
         
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                   (c)  A final decision issued by the board under this section  | 
         
         
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            must be in writing and must either adopt the proposed findings of  | 
         
         
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            fact and conclusions of law as proposed by the administrative law  | 
         
         
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            judge or include revised findings of fact and conclusions of law  | 
         
         
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            consistent with Subsection (b). | 
         
         
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                   (d)  Notwithstanding any other law, a board shall issue a  | 
         
         
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            final decision under this section not later than the 180th day after  | 
         
         
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            the date of receipt of the final proposal for decision from the  | 
         
         
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            State Office of Administrative Hearings. The deadline may be  | 
         
         
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            extended if all parties agree to the extension. | 
         
         
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                   (e)  Notwithstanding any other law, if a motion for rehearing  | 
         
         
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            is filed and granted by a board under Section 36.412, the board  | 
         
         
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            shall make a final decision on the application not later than the  | 
         
         
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            90th day after the date of the decision by the board that was  | 
         
         
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            subject to the motion for rehearing. | 
         
         
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                   (f)  A board is considered to have adopted a final proposal  | 
         
         
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            for decision of the administrative law judge as a final order on the  | 
         
         
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            181st day after the date the administrative law judge issued the  | 
         
         
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            final proposal for decision if the board has not issued a final  | 
         
         
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            decision by: | 
         
         
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                         (1)  adopting the findings of fact and conclusions of  | 
         
         
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            law as proposed by the administrative law judge; or | 
         
         
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                         (2)  issuing revised findings of fact and conclusions  | 
         
         
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            of law as provided by Subsection (b). | 
         
         
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                   (g)  A proposal for decision adopted under Subsection (f) is  | 
         
         
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            final, immediately appealable, and not subject to a request for  | 
         
         
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            rehearing. | 
         
         
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                   SECTION 8.  The changes in law made by this Act apply to an  | 
         
         
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            application for a permit or permit amendment submitted on or after  | 
         
         
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            the effective date of this Act.  An application for a permit or  | 
         
         
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            permit amendment submitted before the effective date of this Act is  | 
         
         
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            governed by the law in effect at the time the application was  | 
         
         
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            submitted, and the former law is continued in effect for that  | 
         
         
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            purpose. | 
         
         
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                   SECTION 9.  This Act takes effect immediately if it receives  | 
         
         
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            a vote of two-thirds of all the members elected to each house, as  | 
         
         
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            provided by Section 39, Article III, Texas Constitution.  If this  | 
         
         
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            Act does not receive the vote necessary for immediate effect, this  | 
         
         
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            Act takes effect September 1, 2023. | 
         
         
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            ______________________________ | 
            ______________________________ | 
         
         
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               President of the Senate | 
            Speaker of the House      | 
         
         
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                   I certify that H.B. No. 1971 was passed by the House on April  | 
         
         
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            26, 2023, by the following vote:  Yeas 147, Nays 0, 1 present, not  | 
         
         
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            voting. | 
         
         
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            ______________________________ | 
         
         
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            Chief Clerk of the House    | 
         
         
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                   I certify that H.B. No. 1971 was passed by the Senate on May  | 
         
         
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            16, 2023, by the following vote:  Yeas 31, Nays 0. | 
         
         
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            ______________________________ | 
         
         
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            Secretary of the Senate     | 
         
         
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            APPROVED:  _____________________ | 
         
         
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                               Date           | 
         
         
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                      _____________________ | 
         
         
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                             Governor        |