Amend HB 1763 by adding the following sections and renumber 
accordingly:   
	SECTION ___.  Section 16.053, Water Code, is amended by 
amending Subsection (e) and (p) and adding Subsections (p-1), 
(p-2), (p-3) and (p-4) to read as follows:
	(e)  Each regional water planning group shall submit to the 
development board a regional water plan that:
		(1)  is consistent with the guidance principles for the 
state water plan adopted by the development board under Section 
16.051(d);
		(2)  provides information based on data provided or 
approved by the development board in a format consistent with the 
guidelines provided by the development board under Subsection (d);
		(3)  identifies:                                                              
			(A)  each source of water supply in the regional 
water planning area, including information supplied by the 
executive administrator on the amount of managed available 
groundwater in accordance with the guidelines provided by the 
development board under Subsections (d) and (f);
			(B)  factors specific to each source of water 
supply to be considered in determining whether to initiate a 
drought response; and
			(C)  actions to be taken as part of the response;                            
		(4)  has specific provisions for water management 
strategies to be used during a drought of record;
		(5)  includes but is not limited to consideration of the 
following:         
			(A)  any existing water or drought planning 
efforts addressing all or a portion of the region;
			(B)  approvedcertified groundwater 
conservation district management plans and other plans submitted 
under Section 16.054;
			(C)  all potentially feasible water management 
strategies, including but not limited to improved conservation, 
reuse, and management of existing water supplies, conjunctive use,
acquisition of available existing water supplies, and development 
of new water supplies;
			(D)  protection of existing water rights in the 
region;                    
			(E)  opportunities for and the benefits of 
developing regional water supply facilities or providing regional 
management of water supply facilities;
			(F)  appropriate provision for environmental 
water needs and for the effect of upstream development on the bays, 
estuaries, and arms of the Gulf of Mexico and the effect of plans on 
navigation;
			(G)  provisions in Section 11.085(k)(1) if 
interbasin transfers are contemplated;
			(H)  voluntary transfer of water within the region 
using, but not limited to, regional water banks, sales, leases, 
options, subordination agreements, and financing agreements; and
			(I)  emergency transfer of water under Section 
11.139, including information on the part of each permit, certified 
filing, or certificate of adjudication for nonmunicipal use in the 
region that may be transferred without causing unreasonable damage 
to the property of the nonmunicipal water rights holder;
		(6)  identifies river and stream segments of unique 
ecological value and sites of unique value for the construction of 
reservoirs that the regional water planning group recommends for 
protection under Section 16.051;
		(7)  assesses the impact of the plan on unique river and 
stream segments identified in Subdivision (6) if the regional water 
planning group or the legislature determines that a site of unique 
ecological value exists; and
		(8)  describes the impact of proposed water projects on 
water quality.      
	(p)  If a groundwater conservation district files a petition 
with the development board stating that a conflict requiring 
resolution may exist between the district's approvedcertified 
groundwater conservation district management plan developed under 
Section 36.1071 and anthe approved stateregional water plan, 
the development board shall provide technical assistance to and
facilitate coordination between the district and the involved 
region to resolve the conflict.  Not later than the 45th day after 
the date the groundwater conservation district files a petition 
with the development board, if the conflict has not been resolved, 
the district and the involved region shall mediate the conflict.  
The district and the involved region may seek the assistance of the 
Center for Public Policy Dispute Resolution at The University of 
Texas School of Law or an alternative dispute resolution system 
established under Chapter 152, Civil Practice and Remedies Code, in 
obtaining a qualified impartial third party to mediate the 
conflict.  The cost of the mediation services must be specified in 
the agreement between the parties and the Center for Public Policy 
Dispute Resolution or the alternative dispute resolution system.
If the district and the involved region cannot resolve the conflict 
through mediationremains, the development board shall resolve 
the conflict not later than the 60th day after the date the 
mediation is completed as provided by Subsections (p-1) and (p-2).
	(p-1)  If the development board determines that resolution 
of the conflict requires a revision of an approved regional water 
plan, the development board shall suspend the approval of that plan 
and provide information to the regional water planning group.  The 
regional water planning group shall prepare any revisions to its 
plan specified by the development board and shall hold, after 
notice, at least one public hearing at some central location within 
the regional water planning area.  The regional water planning 
group shall consider all public and development board comments, 
prepare, revise, and adopt its plan, and submit the revised plan to 
the development board for approval and inclusion in the state water 
plan.
	(p-2)  If the development board determines that resolution 
of the conflict requires a revision of the district's approved 
certified groundwater conservation district management plan, the 
development board shall suspend the certification of that plan and
provide information to the district.  The groundwater district 
shall prepare any revisions to its plan based on the information 
providedspecified by the development board and shall hold, after 
notice, at least one public hearing at some central location within 
the district.  The groundwater district shall consider all public 
and development board comments, prepare, revise, and adopt its 
plan, and submit the revised plan to the development board for 
certification.
	(p-3)  If the groundwater conservation district disagrees 
with the decision of the development board under Subsection (p), 
the district may appeal the decision to a district court in Travis 
County.  Costs for the appeal shall be set by the court hearing the 
appeal.  An appeal under this subsection is by trial de novo.
	(p-4)  On the request of the involved region or groundwater 
conservation district, the development board shall include 
discussion of the conflict and its resolution in the state water 
plan that the development board provides to the governor, the 
lieutenant governor, and the speaker of the house of 
representatives under Section 16.051(e).
	SECTION ___.  Section 36.001, Water Code, is amended by 
striking Subdivision (17) amending and adding Subdivisions (4-a) 
and (24) through (29) to read as follows:
		(4-a)  "Federal conservation program" means the 
Conservation Reserve Program of the United States Department of 
Agriculture.
		(17)  "Applicant" means a newly confirmed district 
applying for a loan from the loan fund.
		(24)  "Total aquifer storage" means the total 
calculated volume of groundwater that an aquifer is capable of 
producing.
		(25)  "Managed available groundwater" means the amount 
of water that may be permitted by a district for beneficial use in 
accordance with the desired future condition of the aquifer as 
determined under Section 36.108.
		(26)  "Recharge" means the amount of water that 
infiltrates to the water table of an aquifer.
		(27)  "Inflows" means the amount of water that flows 
into an aquifer from another formation.
		(28)  "Discharge" means the amount of water that leaves 
an aquifer by natural or artificial means.
		(29)  "Evidence of historic or existing use" means 
evidence that is material and relevant to a determination of the 
amount of groundwater beneficially used without waste by a permit 
applicant during the relevant time period set by district rule that 
regulates groundwater based on historic use.  Evidence in the form 
of oral or written testimony shall be subject to cross-examination. 
The Texas Rules of Evidence govern the admissibility and 
introduction of evidence of historic or existing use, except that 
evidence not admissible under the Texas Rules of Evidence may be 
admitted if it is of the type commonly relied upon by reasonably 
prudent persons in the conduct of their affairs.
	SECTION ___.  Subsections (a), (b), and (d) through (h), 
Section 36.1071, Water Code, are amended to read as follows:
	(a)  Following notice and hearing, the district shall, in 
coordination with surface water management entities on a regional 
basis, develop a comprehensive management plan which addresses the 
following management goals, as applicable:
		(1)  providing the most efficient use of groundwater;                         
		(2)  controlling and preventing waste of groundwater;                         
		(3)  controlling and preventing subsidence;                                   
		(4)  addressing conjunctive surface water management 
issues;                
		(5)  addressing natural resource issues;                                      
		(6)  addressing drought conditions; and                                       
		(7)  addressing conservation, recharge enhancement, 
rainwater harvesting, precipitation enhancement, or brush control, 
where appropriate and cost-effective; and
		(8)  addressing in a quantitative manner the desired 
future conditions of the groundwater resources;
	(b)  After January 5, 2002, aA district management plan, or 
any amendments to a district management plan, shall be developed by 
the district using the district's best available data and forwarded 
to the regional water planning group for useconsideration in 
their planning process.
	(d)  The commission shall provide technical assistance to a 
district during its initial operational phase.  If requested by a 
district, the Texas Water Development Board shall train the 
district on basic data collection methodology and provide technical 
assistance to districts as provided by Section 16.0122.
	(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)  include estimates of the following:                                      
			(A)  managed availablethe existing total 
usable amount of groundwater in the district based on the desired 
future condition established under Section 36.108;
			(B)  the amount of groundwater being used within 
the district on an annual basis;
			(C)  the annual amount of recharge from 
precipitation, if any, to the groundwater resources within the 
district and how natural or artificial recharge may be increased; 
and
			(D)  for each aquifer, the annual volume of water 
that discharges from the aquifer to springs and any surface water 
bodies, including lakes, streams, and rivers;
			(E)  the annual volume of flow into and out of 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
projected water supply and demand for water within the district; 
and
		(4)  consider theaddress water supply needs and water 
management strategies included in a manner that is not in conflict 
with the adopted stateappropriate approved regional water plan 
if a regional water plan has been approved under Section 16.053.
	(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 non-wasteful, beneficial use a 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.
	(g)  The districtboard shall adopt amendments to the 
management plan as necessary.  Amendments to the management plan 
shall be adopted after notice and hearing and shall otherwise 
comply with the requirements of this section.
	(h)  In developing its management plan, the district shall 
use the groundwater availability modeling information provided by 
the executive administrator togetherin conjunction 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 acceptable to the executive 
administrator.
	SECTION ___.  Section 36.1072, Water Code, is amended to read 
as follows:    
	Sec. 36.1072.  TEXAS WATER DEVELOPMENT BOARD REVIEW AND 
APPROVALCERTIFICATION OF MANAGEMENT PLAN.  (a)  A district 
shall, not later than threetwo years after the creation of the 
district or, if the district required confirmation, after the 
election confirming the district's creation, submit the management 
plan required under Section 36.1071 to the executive administrator 
for review and approvalcertification.  
	(b)  Within 60 days of receipt of a management plan adopted 
under Section 36.1071, readopted under Subsection (e) or (g) of 
this section, or amended under Section 36.1073, the executive 
administrator shall approvecertify a management plan if the plan 
is administratively complete.  A management plan is 
administratively complete when it contains the information 
required to be submitted under Section 36.1071(a) and (e).
	The executive administrator may determine whetherthat
conditions justify waiver of the requirements under Section 
36.1071(e)(4).
	(c)  Once the executive administrator has approved a 
determination that a management plan is administratively complete 
has been made:
		(1)  the executive administrator may not revoke but may 
suspend the approval as provided by Subsection (g)determination 
that a management plan is administratively complete; and
		(2)  the executive administrator may request 
additional information from the district if the information is 
necessary to clarify, modify, or supplement previously submitted 
material, but; and
		(3)  a request for additional information does not 
render the management plan unapprovedincomplete.
	(d)  A management plan takes effect on approval
certification by the executive administrator or, if appealed, on 
approvalcertification by the Texas Water Development Board.
	(e)  The districtboard may review the plan annually and 
must review and readopt the plan with or without revisions at least 
once every five years.  The district shall provide the readopted 
plan to the executive administrator not later than the 60th day 
after the date on which the plan was readopted.  Approval of the 
preceding management plan remains in effect until:
		(1)  the district fails to timely readopt a management 
plan;         
		(2)  the district fails to timely submit the district's 
readopted management plan to the executive administrator; or
		(3)  the executive administrator determines that the 
readopted management plan does not meet the requirements for 
approval, and the district has exhausted all appeals to the Texas 
Water Development Board or appropriate court.
	(f)  If the executive administrator does not approve
certify the management plan, the executive administrator shall 
provide to the district, in writing, the reasons for the action.  
Not later than the 180th day after the date a district receives 
notice that its management plan has not been approvedcertified, 
the district may submit a revised management plan for review and 
approvalcertification.  The executive administrator's decision 
may be appealed to the Texas Water Development Board.  If the Texas 
Water Development Board decides not to approve the management plan 
on appeal, the district may request that the conflict be mediated.  
The district and the board may seek the assistance of the Center for 
Public Policy Dispute Resolution at The University of Texas School 
of Law or an alternative dispute resolution system established 
under Chapter 152, Civil Practice and Remedies Code, in obtaining a 
qualified impartial third party to mediate the conflict.  The cost 
of the mediation services must be specified in the agreement 
between the parties and the Center for Public Policy Dispute 
Resolution or the alternative dispute resolution system.  If the 
parties do not resolve the conflict through mediation, theThe
decision of the Texas Water Development Board noton whether to 
approvecertify the management plan may not be appealed to a 
district court in Travis County.  Costs for the appeal shall be set 
by the court hearing the appeal.  An appeal under this subsection is 
by trial de novo.  The commission shall not take enforcement action 
against a district under Subchapter I until the later of the 
expiration of the 180-day period,or the date the Texas Water 
Development Board has taken final action withholding approval
certification of a revised management plan, the date the mediation 
is completed, or the date a final judgment upholding the board's 
decision is entered by a district court.  An enforcement action may 
not be taken against a district by the commission or the state 
auditor under Subchapter I because the district's management plan 
and the approved regional water plan are in conflict while the 
parties are attempting to resolve the conflict before the 
development board, in mediation, or in court.  Rules of the district 
continue in full force and effect until all appeals under this 
subsection have been exhausted and the final judgment is adverse to 
the district.
	(g)  In this subsection, "development board" means the Texas 
Water Development Board.  A person with a legally defined interest 
in groundwater in a district or the regional water planning group 
may file a petition with the development board stating that a 
conflict requiring resolution may exist between the district's 
approvedcertified groundwater conservation district management 
plan developed under Section 36.1071 and the state water plan.  If a 
conflict exists, the development board shall provide technical 
assistance to and facilitate coordination between the involved 
person or regional water planning group and the district to resolve 
the conflict.  Not later than the 45th day after the date the person 
or the regional water planning group files a petition with the 
development board, if the conflict has not been resolved, the 
district and the involved person or regional planning group may 
mediate the conflict.  The district and the involved person or 
regional planning group may seek the assistance of the Center for 
Public Policy Dispute Resolution at The University of Texas School 
of Law or an alternative dispute resolution system established 
under Chapter 152, Civil Practice and Remedies Code, in obtaining a 
qualified impartial third party to mediate the conflict.  The cost 
of the mediation services must be specified in the agreement 
between the parties and the Center for Public Policy Dispute 
Resolution or the alternative dispute resolution system.  If the 
district and the involved person or regional planning group cannot 
resolve the conflict through mediationremains, the development
board shall resolve the conflict not later than the 60th day after 
the date the mediation is completed.  The development board action 
under this provision may be consolidated, at the option of the 
board, with related action under Section 16.053(p).  If the 
development board determines that resolution of the conflict 
requires a revision of the approvedcertified groundwater 
conservation district management plan, the development board shall 
suspend the certification of the plan and provide information to 
the district.  The district shall prepare any revisions to the plan 
based on the information providedspecified by the development
board and shall hold, after notice, at least one public hearing at 
some central location within the district.  The district shall 
consider all public and development board comments, prepare, 
revise, and adopt its plan, and submit the revised plan to the 
development board for approvalcertification.  On the request of 
the district or the regional water planning group, the development
board shall include discussion of the conflict and its resolution 
in the state water plan that the development board provides to the 
governor, the lieutenant governor, and the speaker of the house of 
representatives under Section 16.051(e).  If the groundwater 
conservation district disagrees with the decision of the 
development board under this subsection, the district may appeal 
the decision to a district court in Travis County.  Costs for the 
appeal shall be set by the court hearing the appeal.  An appeal 
under this subsection is by trial de novo.
	SECTION ___.  Section 36.1073, Water Code, is amended to read 
as follows:    
	Sec. 36.1073.  AMENDMENT TO MANAGEMENT PLAN.  Any amendment 
to the management plan shall be submitted to the executive 
administrator within 60 days following adoption of the amendment by 
the district's board.  The executive administrator shall review and 
approvecertify any amendment which substantially affects the 
management plan in accordance with the procedures established under 
Section 36.1072.
	SECTION ___.  Subchapter D, Chapter 36, Water Code, is 
amended by amending Section 36.108 to read as follows:
	Sec. 36.108.  JOINT PLANNING IN MANAGEMENT AREA.  (a)  In this 
section, "development board" means the Texas Water Development 
Board.
	(a)(b) If two or more districts are located within the 
boundaries of the same management area, each district shall prepare 
a comprehensive management plan as required by Section 36.1071 
covering that district's respective territory.  On completion and 
approvalcertification of the plan as required by Section 
36.1072, each district shall forward a copy of the new or revised 
management plan to the other districts in the management area.  The 
boards of the districts shall consider the plans individually and 
shall compare them to other management plans then in force in the 
management area.
	(b)(c)The board of directors ofThe presiding officer, 
or their designee, of each district located in whole or in part in 
the management area shall meet at least annually to conductmay, 
by resolution, call for joint planning with the other districts in 
the management area and to review the management plans and 
accomplishments for the management area.  In reviewing the 
management plans, the districtsboards shall consider:
		(1)  the goals of each management plan and its impact on 
planning throughout the management area;
		(2)  the effectiveness of the measures established by 
each management plan for conserving and protecting groundwater and 
preventing waste, and the effectiveness of these measures in the 
management area generally; and
		(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 established during the joint planning 
process.  
	(d)  Not later than five years after the effective date of 
this subsection and every five years thereafter, During the joint 
planning process, the districts shall consider groundwater 
availability models and other data or information for the 
management area and shall establish desired future conditions for 
the relevant aquifers within the management area.  In establishing 
the desired future conditions of the aquifers under this section, 
the districts shall consider uses or conditions of an aquifer 
within the management area that differ substantially from one 
geographic area to another. The districts may establish different 
desired future conditions for:
		(1) each 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-1)  The desired future conditions established under 
Subsection (d) must be adopted by two-thirds vote of the district 
representatives present at a meeting.
		(1) at which at least two-thirds of the districts 
located in whole or in part in the management area have a voting 
representative in attendance; and
		(2) for which all districts located in whole or in part 
in the management area provide public notice in accordance with 
Chapter 551, Government Code.
	(d-2) 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 aquifers as 
adopted during the joint planning process.
	(e)If aA joint meeting of the boards of directors is 
called, the meeting must beunder this section must be held in 
accordance with Chapter 551, Government Code. Each district shall 
comply with Chapter 552, Government Code.  Notice of the meeting 
shall be given in accordance with the requirements for notice of 
district board of directors meetings under that Act.
	(d)(f)  A district or person with a legally defined interest 
in the groundwater within the management area may file [with good 
cause] a petition with the commission requesting an inquiry if the 
petitioner district adopted a resolution calling for joint planning 
and the othera district or districts refused to join in the 
planning process or the process failed to result in adequate 
planning, including the establishment of reasonable future desired 
conditions of the aquifers, and the petition provides evidence 
that:
		(1)  anothera district in the groundwater management 
area has failed to adopt rules;
		(2)  the rules adopted by a district are not designed to 
achieve the desired future condition of the groundwater resources 
in the groundwater management area established during the joint 
planning process;
		(3)  the groundwater in the management area is not 
adequately protected by the rules adopted by anothera district; 
or
		(4)(3)  the groundwater in the groundwater management 
area is not adequately protected due to the failure of aanother
district to enforce substantial compliance with its rules.
	(e)(g)  Not later than the 90th day after the date the 
petition is filed, the commission shall review the petition and 
either:
		(1)  dismiss the petition if the commissionit if it
finds that the evidence is not adequate to show that any of the 
conditions alleged in the petition exist; or
		(2)  select a review panel as provided in Subsection 
(f)(h).
	(f)(h)  If the petition is not dismissed under Subsection 
(e)(g), the commission shall appoint a review panel consisting of a 
chairman and four other members.  A director or general manager of a 
district located outside the groundwater management area that is 
the subject of the petition may be appointed to the review panel.  
	The commission may not appoint more than two members of the 
review panel from any one district.  The commission also shall 
appoint a disinterested person to serve as a nonvoting recording 
secretary for the review panel.  The recording secretary may be an 
employee of the commission.  The recording secretary shall record 
and document the proceedings of the panel.
	(g)(i)  Not later than the 120th day after appointment, the 
review panel shall review the petition and any evidence relevant to 
the petition and, in a public meeting, consider and adopt a report 
to be submitted to the commission.  The commission may direct the 
review panel to conduct public hearings at a location in the 
groundwater management area to take evidence on the petition.  The 
review panel may attempt to negotiate a settlement or resolve the 
dispute by any lawful means.
	(h)(j)  In its report, the review panel shall include: 
		(1)  a summary of all evidence taken in any hearing on 
the petition;        
		(2)  a list of findings and recommended actions 
appropriate for the commission to take and the reasons it finds 
those actions appropriate; and
		(3)  any other information the panel considers 
appropriate.                 
	(i)(k)  The review panel shall submit its report to the 
commission.  The commission may take action under Section 36.3011.
	(l) A person with a legally defined interest in the 
groundwater in the groundwater management area, a district in or 
adjacent to the groundwater management area, or a regional water 
planning group for a region in the groundwater management area may 
file a petition with the development board appealing the approval 
of the desired future conditions of the groundwater resources 
established under this section.  The petition must provide evidence 
that the districts did not establish a reasonable desired future 
condition of the groundwater resources in the groundwater 
management area.
	(m)  The development board shall review the petition and any 
evidence relevant to the petition.  The development board shall 
hold at least one hearing at a central location in the management 
area to take testimony on the petition.  The development board may 
delegate responsibility for a hearing to the executive 
administrator or to a person designated by the executive 
administrator.  If the development board finds that the conditions 
require revision, the development board shall submit a report to 
the districts that includes a list of findings and recommended 
revisions to the desired future conditions of the groundwater 
resources.
	(n)  The districts shall prepare a revised plan in accordance 
with development board recommendations and hold, after notice, at 
least one public hearing at a central location in the groundwater 
management area.  After consideration of all public and development 
board comments, the districts shall revise the conditions and 
submit it to the development board for review.
	(j)(o) The districts shall submit the conditions established 
under this section to the executive administrator.  The executive 
administrator shall provide each district and regional water 
planning group located wholly or partly in the management area with 
the managed available groundwater in the management area based upon 
the desired future condition of the groundwater resources 
established under this section.
	(p) Districts located within the same groundwater 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, 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 __.  Section 36.109, Water Code, is amended to read 
as follows:      
	Sec. 36.109.  COLLECTION OF INFORMATION.  A district may 
collect any information the board deems necessary, including 
information regarding the use of groundwater, water conservation, 
and the practicability of recharging a groundwater reservoir.  At 
the request of the executive administrator, the district shall 
provide any data collected by the district in a format acceptable to 
the executive administrator.
	SECTION __.  Subchapter D, Chapter 36, Water Code, is 
amended by adding Section 36.1132 to read as follows:
	Sec. 36.1132.  PERMITS BASED ON MANAGED AVAILABLE 
GROUNDWATER.  A district, to the extent possible, shall issue 
permits up to the point that the total volume of groundwater 
permitted equals the managed available groundwater, if 
administratively complete permit applications are submitted to the 
district.
	SECTION ___.  Section 36.3011, Water Code, is amended to read 
as follows:    
	Sec. 36.3011.  FAILURE OF A DISTRICT TO CONDUCT JOINT 
PLANNING.  (a)  If the board of a district within a common 
management area fails to forward a copy of its new or revised 
certified management plan under Section 36.108, the commission 
shall take appropriate action under Section 36.303.
	(b)  Not later than the 45th day after receiving the review 
panel's report under Section 36.108, the executive director or the 
commission shall take action to implement any or all of the panel's 
recommendations.  The commission may take any action against a 
district it considers necessary in accordance with Section 36.303 
ifIf the commission finds that:
		(1)  a district in the joint planning area has failed to 
submit its plan to the executive administrator;
		(2)  a district has failed to adopt rules;                      
		(3)  the rules adopted by the district are not designed 
to achieve the desired future condition of the groundwater 
resources in the groundwater management area; or
		(4)  the groundwater in the management area is not 
adequately protected by the rules adopted by the district, or the 
groundwater in the management area is not adequately protected 
because of the district's failure to enforce substantial compliance 
with its rules, the commission may take any action it considers 
necessary in accordance with Section 36.303.
	SECTION __.  Subsection (d), Section 36.302, Water Code, is 
amended to read as follows:
	(d)  The state auditor may perform the review under 
Subsection (a) following the first anniversary of the initial 
approval certification of the plan by the Texas Water Development 
Board under Section 36.1072 and at least as often as once every 
seven years after that date, subject to a risk assessment and to the 
legislative audit committee's approval of including the review in 
the audit plan under Section 321.013, Government Code.
	SECTION __.  Subsection (a), Section 36.304, Water Code, is 
amended to read as follows:
	(a)  The commission may dissolve a district that:             
		(1)  is not operational, as determined under Section 
36.302; and
		(2)  has no outstanding bonded indebtedness.                 
	SECTION __.  Subsection (a) and (b), Section 36.116, Water 
Code is amended 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;
			(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)  managed depletion; 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 or existing 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 and as provided by Section 
36.113.
	SECTION __.  Section 9.017, Water Code, is repealed.