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By:  Puente (Senate Sponsor - Armbrister)                         H.B. No. 2423
	(In the Senate - Received from the House April 27, 2005; 
April 29, 2005, read first time and referred to Committee on 
Natural Resources; May 20, 2005, reported adversely, with 
favorable Committee Substitute by the following vote:  Yeas  6, 
Nays 0; May 20, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2423                                   By:  Armbrister

A BILL TO BE ENTITLED
AN ACT
relating to the consideration of historic or existing use in the regulation of pumping and discrimination by a groundwater conservation district against landowners whose land is enrolled or participating in a federal conservation program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 36.001, Water Code, is amended by adding Subdivision (4-a) to read as follows: (4-a) "Federal conservation program" means the Conservation Reserve Program of the United States Department of Agriculture, or any successor program. SECTION 2. Section 36.002, Water Code, is amended to read as follows: Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and rights of the owners of the land and their lessees and assigns in groundwater are hereby recognized, and nothing in this code shall be construed as depriving or divesting the owners or their lessees and assigns of the ownership or rights, except as those rights may be limited or altered by rules promulgated by a district. A rule promulgated by a district may not discriminate between owners of land that is irrigated for production and owners of land or their lessees and assigns whose land that was irrigated for production is enrolled or participating in a federal conservation program. SECTION 3. Section 36.113, Water Code, is amended by amending Subsections (a), (c), (e), and (f) and adding Subsections (h) through (l) to read as follows: (a) A district shall require permits for [the] drilling, equipping, [or] completing, or operating [of] wells or for substantially altering the size of wells or well pumps. (c) A district may require that the following be included in the permit application: (1) the name and mailing address of the applicant and the owner of the land on which the well will be located; (2) if the applicant is other than the owner of the property, documentation establishing the applicable authority to construct and operate a well for the proposed purpose of use; (3) a statement of the nature and purpose of the proposed use and the amount of water to be used for each purpose; (4) a water conservation plan or a declaration that the applicant will comply with the district's management plan; (5) the location of each well and the estimated rate at which water will be withdrawn; (6) a water well closure plan or a declaration that the applicant will comply with well plugging guidelines and report closure to the commission; and (7) a drought contingency plan. (e) The district may impose more restrictive permit conditions on new permit applications and increased use by historic or existing users if the limitations: (1) apply to all subsequent new permit applications and increased use by historic or existing users, regardless of type or location of use; (2) bear a reasonable relationship to the existing district management plan; and (3) are reasonably necessary to protect existing use. (f) Permits may be issued subject to the rules promulgated by the district and subject to terms and provisions with reference to the drilling, equipping, completion, operating, or alteration of wells or pumps that may be necessary to prevent waste and achieve water conservation, minimize as far as practicable the drawdown of the water table or the reduction of artesian pressure, lessen interference between wells, or control and prevent subsidence. (h) A district shall provide that a change in the purpose and place of use under a permit that was granted for historic or existing use may not be made without a permit amendment. The district shall grant a permit amendment changing the purpose and place of use on application of the holder of a permit that was granted for historic or existing use, and the rules that apply to the operation of a well under any other permit issued by the district not based on historic or existing use apply to the operation of the well under the amended permit. (i) A district that authorizes a permit for historic or existing use shall issue that type of permit based on evidence of the maximum amount of water beneficially used without waste during any one year before the district was created, or before the rules of the district were adopted or notice of such proposed rules was published and only for the purpose and amount beneficially used without waste in that year. (j) In issuing a permit for an existing or historic use, a district may not discriminate between land that is irrigated for production and land or wells on land that was irrigated for production and enrolled or participating in a federal conservation program. (k) A permitting decision by a district is void if: (1) the district makes its decision in violation of Subsection (j); and (2) the district would have reached a different decision if the district had treated land or wells on land that was irrigated for production and enrolled or participating in a federal conservation program the same as land irrigated for production. (l) On the application of an affected owner of land or the owner's lessee or assigns, the district shall reconsider a decision that is void under Subsection (k) and base its decision on the equal treatment of land or wells on land that was irrigated for production and enrolled or participating in a federal conservation program and land that is irrigated for production. Not later than the 90th day after the date the district receives an application under this subsection, the district shall render its decision and notify the applicant of its decision. SECTION 4. Subsection (b), Section 36.116, Water Code, is amended to read as follows: (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 5. (a) Except in any district located in a single county whose boundaries were expanded, but are not coextensive with the county in which the district is located, by an Act of the Texas Legislature in a regular session on or after 2003, the changes in law made under this legislation do not apply to: (1) an application or permit issued on the basis of an application filed before March 1, 2005; (2) a renewal or amendment of a permit issued on the basis of an application filed before March 1, 2005; (3) a permit issued under rules in effect as of March 1, 2005; (4) a renewal or amendment to a permit issued under rules in effect as of March 1, 2005; or (5) rules of groundwater conservation districts that were adopted prior to March 1, 2005. (b) Subsection (a) of this section does not limit the ability of a groundwater conservation district to adopt procedural rules governing notice, hearing, rulemaking, or permit processing in accordance with any law finally passed by the 79th Legislature, Regular Session, 2005, that governs notice, hearing, rulemaking, or permit processing procedures of groundwater conservation districts, if the procedural rules adopted do not conflict with a substantive district rule that existed on March 1, 2005. SECTION 6. This Act takes effect September 1, 2005.
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