By:  Cook of Colorado (Senate Sponsor - Armbrister)               H.B. No. 3035
	(In the Senate - Received from the House May 19, 2003; 
May 20, 2003, read first time and referred to Committee on Natural 
Resources; May 26, 2003, reported favorably, as amended, by the 
following vote:  Yeas 8, Nays 0; May 26, 2003, sent to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Armbrister

	Amend H.B. 3035 as follows:                                                  
	On page 4, line 61, strike "a district shall select a method 
under Subsection (a)(2) that is appropriate based on the 
hydrogeological conditions of the aquifer or aquifers in the 
district" and substitute "and selecting an appropriate method under 
Subsection (a)(2), a district shall select the hydrogeological 
conditions of the aquifer or aquifers in the district."


COMMITTEE AMENDMENT NO. 2                                                By:  Armbrister

	Amend HB 3035 by inserting new SECTIONs 2 through 13 as 
follows and renumbering the remaining sections accordingly:
	SECTION 2.  Section 1.03, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by adding 
Subdivision (28) to read as follows:
		(28)  "Recharge facility" means a dam, reservoir, or 
other recharge project, and associated facilities, structures, or 
works.
	SECTION 3.  Section 1.07, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended to read as follows:
	Sec. 1.07.  OWNERSHIP OF UNDERGROUND WATER.  The ownership 
and rights of the owner of the land and the owner's lessees and 
assigns, including holders of recorded liens or other security 
interests in the land, in underground water and the contract rights 
of any person who purchases water for the provision of potable water 
to the public or for the resale of potable water to the public for 
any use are recognized.  However, action taken pursuant to this Act 
may not be construed as depriving or divesting the owner or the 
owner's lessees and assigns, including holders of recorded liens or 
other security interests in the land, of these ownership rights or 
as impairing the contract rights of any person who purchases water 
for the provision of potable water to the public or for the resale 
of potable water to the public for any use, subject to the rules 
adopted by the authority or a district exercising the powers 
provided by Chapter 36 [52], Water Code.  The legislature intends 
that just compensation be paid if implementation of this article 
causes a taking of private property or the impairment of a contract 
in contravention of the Texas or federal constitution.
	SECTION 4.  Subsection (a), Section 1.08, Chapter 626, Acts 
of the 73rd Legislature, Regular Session, 1993, is amended to read 
as follows:
	(a)  The authority has all of the powers, rights, and 
privileges necessary to manage, conserve, preserve, and protect the 
aquifer and to increase the recharge of, and prevent the waste or 
pollution of water in, the aquifer.  The authority has all of the 
rights, powers, privileges, authority, functions, and duties 
provided by the general law of this state, including Chapters 36, 
49, and [50,] 51, [and 52,] Water Code, applicable to an authority 
created under Article XVI, Section 59, of the Texas  Constitution.  
This article prevails over any provision of general law that is in 
conflict or inconsistent with this article regarding the area of 
the authority's jurisdiction.
	SECTION 5.  Section 1.09, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by adding Subsection 
(i) to read as follows:
	(i)  To be eligible to be elected or appointed as a voting 
member of the board, a person must have resided continuously in the 
authority single-member election district from which the person 
seeks to be elected or appointed for six months immediately 
preceding the following date:
		(1)  for a candidate for election, the 60th day before 
the general election date; or
		(2)  for a candidate for appointment, the date the 
appointment is made.
	SECTION 6.  Section 1.11, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by amending 
Subsection (f) and adding Subsection (h) to read as follows:
	(f)  The authority may contract with a person who uses water 
from the aquifer for the authority or that person to own, finance, 
design, construct, operate, or [own, finance, and] maintain 
recharge [water supply] facilities.  [Management fees or special 
fees may not be used for purchasing or operating these facilities.  
For the purpose of this subsection, "water supply facility" 
includes a dam, reservoir, treatment facility, transmission 
facility, or recharge project.]
	(h)  Notwithstanding any other provision of law, the 
authority has no duty, responsibility, or authority relating to the 
protection of water quality.  The commission is the agency of the 
state with responsibility and authority relating to the protection 
of water quality within the boundaries of the authority.
	SECTION 7.  Subsections (b) and (c), Section 1.14, Chapter 
626, Acts of the 73rd Legislature, Regular Session, 1993, are 
amended to read as follows:
	(b)  Except as provided by Subsections (d), (f), and (h) of 
this section and Section 1.26 of this article, beginning January 1, 
2008 [for the period ending December 31, 2007], the amount of 
permitted withdrawals from the aquifer under regular permits may 
not exceed 450,000 acre-feet of water for each calendar year.
	(c)  Except as provided by Subsections (d), (f), and (h) of 
this section and Section 1.26 of this article, beginning January 1, 
2010 [for the period beginning January 1, 2008], the amount of 
permitted withdrawals from the aquifer under regular permits may 
not exceed 400,000 acre-feet of water for each calendar year.
	SECTION 8.  Section 1.16, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by adding Subsection 
(i) to read as follows:
	(i)  The authority shall process as administratively 
complete all declarations of historical use received by the 
authority on or before February 16, 1997, and shall consider any 
such declaration as timely filed.
	SECTION 9.  Section 1.21, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by amending 
Subsection (c) and adding Subsections (d) and (e) to read as 
follows:
	(c)  If, before [on or after] January 1, 2008, the aggregate 
[overall] volume of water authorized to be withdrawn from the 
aquifer under regular permits is greater than 450,000 [400,000] 
acre-feet a year or greater than the adjusted amount determined 
under Subsection (d) of Section 1.14 of this article, not later than 
October 1, 2007, the board shall issue an order to be effective on 
January 1, 2008, proportionately adjusting the [maximum] 
authorized withdrawal amount of each regular permit [shall be 
immediately reduced by an equal percentage] as is necessary to 
reduce aggregate authorized withdrawals under regular permits 
[overall maximum demand] to 450,000 [400,000] acre-feet a year or 
the adjusted amount, as appropriate.  [The amount reduced may be 
restored, in whole or in part, as other appropriate measures are 
implemented that maintain overall demand at or below the 
appropriate amount.]
	(d)  If, before January 1, 2010, the aggregate volume of 
water authorized to be withdrawn from the aquifer under regular 
permits is greater than 400,000 acre-feet a year or greater than the 
adjusted amount determined under Subsection (d) of Section 1.14 of 
this article, the board, not later than October 1, 2009, shall issue 
an order to be effective January 1, 2010, proportionally adjusting 
the authorized withdrawal amount of each regular permit as is 
necessary to reduce aggregate authorized withdrawals under regular 
permits to 400,000 acre-feet a year or the adjusted amount, as 
appropriate.
	(e)  Proportional adjustments under this section and for 
purposes of satisfying the requirements of Section 1.14 of this 
article and this section shall be applied on the same terms and 
conditions to all permits issued under Section 1.16 of this 
article.
	SECTION 10.  Subsection (b), Section 1.28, Chapter 626, Acts 
of the 73rd Legislature, Regular Session, 1993, is amended to read 
as follows:
	(b)  The authority may issue revenue bonds to finance:                  
		(1)  the purchase of land;                                      
		(2)  [or] the purchase, construction, or installation 
of facilities or equipment, including recharge dams and associated 
facilities, structures, or works; or
		(3)  the retirement of permits under Sections 1.21 and 
1.22 of this article.  [The authority may not allow for any person 
to construct, acquire, or own facilities for transporting 
groundwater out of Uvalde County or Medina County.]
	SECTION 11.  Article 1, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by adding Section 
1.331 to read as follows:
	Sec. 1.331.  EXEMPTION FOR FEDERAL FACILITIES; TRANSFER OF 
OWNERSHIP OF APPLICATION.  (a)  Federal facilities, which are 
immune from regulation under the doctrine of sovereign immunity, 
are exempt from the requirements of this article and any rules 
adopted under this article.
	(b)  A person may obtain an initial regular permit based on 
an application voluntarily filed by a federal facility if, before 
September 1, 2003, the authority approves the transfer of ownership 
of the application for an initial regular permit from the federal 
facility to the person seeking the permit.  If, after the date a 
transfer is approved by the authority, groundwater subject to the 
transfer continues to be withdrawn by the federal facility making 
the transfer, the authority shall condition the authorized 
withdrawal amount of the transferee's interim authorization or 
initial regular permit on the reduction in the amount equal to the 
federal facility withdrawals.
	SECTION 12.  Subsection (c), Section 1.34, Chapter 626, Acts 
of the 73rd Legislature, Regular Session, 1933, is amended to read 
as follows:
	(c)  Subject to the rules of the authority, a [A] permit 
holder may transfer a regular permit or interim authorization 
[lease permitted water rights, but a holder of a permit for 
irrigation use may not lease more than 50 percent of the irrigation 
rights initially permitted.  The user's remaining irrigation water 
rights must be used in accordance with the original permit and must 
pass with transfer of the irrigated land].  Fifty percent of the 
groundwater withdrawal amount initially permitted for irrigation 
may be used only for irrigation.
	SECTION 13.  Section 1.35, Chapter 626, Acts of the 73rd 
Legislature, Regular Session, 1993, is amended by adding Subsection 
(f) to read as follows:
	(f)  A person who transfers a permit or interim authorization 
to withdraw groundwater from the San Antonio pool to a well that 
draws from the Uvalde pool may not transport groundwater withdrawn 
under the transferred permit or interim authorization out of the 
county in which the well that draws from the Uvalde pool is located.


COMMITTEE AMENDMENT NO. 3                                                By:  Armbrister

	Amend H.B. 3035 (Committee Printing) as follows:                             
	(1)  Insert a new SECTION of the bill to read as follows:                      
	SECTION ____.  Section 36.101, Water Code, is amended by 
adding Subsection (d) to read as follows:
	(d)  The commission has principal and exclusive authority as 
to the control, regulation, or abatement of nonpoint source 
pollution of water or other regulation of water quality in terms of 
limiting a landowner's ability to develop or use that land in the 
jurisdiction of any water district or authority with regional 
management and regulatory authority over groundwater withdrawals 
within all or part of at least five counties.
	(2)  Insert a new SECTION of the bill to read as follows:                      
	SECTION ____.  This section supersedes any other provision 
of this Act to the extent of any conflict.  Section 36.101(d), Water 
Code, as added by this Act, supersedes any other applicable law or 
action taken under that law to the extent of any conflict.  Any rule 
or order of an applicable district or authority purporting to 
regulate water quality as described by the change in law made by 
this Act to Section 36.101, Water Code, may not be enforced 
regardless of whether the adoption date of the rule or order is 
before, on, or after the effective date of this Act.

A BILL TO BE ENTITLED
AN ACT
relating to the power of groundwater conservation districts to regulate the spacing of water wells and the production of groundwater. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 36.116, Water Code, as amended by Chapters 966 and 1164, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows: Sec. 36.116. REGULATION OF SPACING AND PRODUCTION. (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; (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; [or] (E) limiting the amount of water produced based on contiguous acreage; or (F) any combination of the methods listed above in Paragraphs (A) through (E) [(D)]. (b) In promulgating any rules limiting groundwater production, the district may preserve historic use before the effective date of the rules to the maximum extent practicable consistent with the district's comprehensive management plan under Section 36.1071. (c) In regulating the production of groundwater based on tract size or acreage, a district may consider the service needs or service area of a retail water utility. For the purposes of this subsection, "retail water utility" shall have the meaning provided at Section 13.002. (d) In regulating the production of groundwater, a district shall select a method under Subsection (a)(2) that is appropriate based on the hydrogeological conditions of the aquifer or aquifers in the district. SECTION 2. To the extent of any conflict, this Act prevails over another Act of the 78th Legislature, Regular Session, 2003, relating to nonsubstantive additions to and corrections in enacted codes. SECTION 3. This Act takes effect September 1, 2003.
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