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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to permit application and amendment hearings conducted by  | 
      
      
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        groundwater conservation districts and the State Office of  | 
      
      
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        Administrative Hearings. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Sections 36.406(a) and (b), Water Code, are  | 
      
      
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        amended to read as follows: | 
      
      
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               (a)  A hearing must be conducted by: | 
      
      
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                     (1)  a quorum of the board; [or] | 
      
      
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                     (2)  an individual to whom the board has delegated in  | 
      
      
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        writing the responsibility to preside as a hearings examiner over  | 
      
      
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        the hearing or matters related to the hearing; or | 
      
      
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                     (3)  the State Office of Administrative Hearings under  | 
      
      
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        Section 36.416. | 
      
      
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               (b)  Except as provided by Subsection (c) or Section 36.416,  | 
      
      
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        the board president or the hearings examiner shall serve as the  | 
      
      
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        presiding officer at the hearing. | 
      
      
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               SECTION 2.  Section 36.416, Water Code, is amended to read as  | 
      
      
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        follows: | 
      
      
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               Sec. 36.416.  HEARINGS CONDUCTED BY STATE OFFICE OF  | 
      
      
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        ADMINISTRATIVE HEARINGS; RULES. (a) If a district contracts with  | 
      
      
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        the State Office of Administrative Hearings to conduct a hearing,  | 
      
      
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        the hearing shall be conducted as provided by Subchapters C, D, and  | 
      
      
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        F, Chapter 2001, Government Code. The district shall adopt rules  | 
      
      
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        for a hearing conducted under this section that are consistent with  | 
      
      
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        the procedural rules of the State Office of Administrative  | 
      
      
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        Hearings. | 
      
      
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               (b)  If requested by the applicant or other party to a  | 
      
      
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        contested case, a district shall contract with the State Office of  | 
      
      
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        Administrative Hearings to conduct the hearing. If the district  | 
      
      
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        does not prescribe a contract deadline by rule, the district shall  | 
      
      
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        contract with the office not later than the 14th day before the date  | 
      
      
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        the hearing is scheduled to begin. The hearing must be held in  | 
      
      
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        Travis County or at a location described by Section 36.403(c). The  | 
      
      
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        district shall choose the location. | 
      
      
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               (c)  The party requesting the hearing shall pay all costs  | 
      
      
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        associated with the contract for the hearing and shall deposit with  | 
      
      
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        the district an amount sufficient to pay the contract amount before  | 
      
      
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        the hearing begins.  At the conclusion of the hearing, the district  | 
      
      
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        shall refund any excess money to the paying party. All other costs  | 
      
      
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        may be assessed as authorized by this chapter or district rules. | 
      
      
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               SECTION 3.  Subchapter M, Chapter 36, Water Code, is amended  | 
      
      
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        by adding Section 36.4165 to read as follows: | 
      
      
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               Sec. 36.4165.  FINAL DECISION; CONTESTED CASE HEARINGS.   | 
      
      
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        Consistent with Section 2001.058, Government Code, the board has  | 
      
      
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        the authority to make a final decision on a permit application or  | 
      
      
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        amendment after a contested case hearing on consideration of a  | 
      
      
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        proposal for decision issued by an administrative law judge. | 
      
      
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               SECTION 4.  The heading to Section 36.418, Water Code, is  | 
      
      
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        amended to read as follows: | 
      
      
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               Sec. 36.418.  RULES; CONTESTED CASE HEARINGS; APPLICABILITY  | 
      
      
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        OF ADMINISTRATIVE PROCEDURE ACT. | 
      
      
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               SECTION 5.  Section 36.418, Water Code, is amended by  | 
      
      
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        amending Subsection (b) and adding Subsection (c) to read as  | 
      
      
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        follows: | 
      
      
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               (b)  Except as provided by this section and Sections  | 
      
      
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        [Section] 36.416 and 36.4165, Chapter 2001, Government Code, does  | 
      
      
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        not apply to a hearing under this subchapter. | 
      
      
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               (c)  The district shall adopt rules to: | 
      
      
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                     (1)  establish a procedure for a preliminary or other  | 
      
      
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        type of hearing; | 
      
      
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                     (2)  allow the presiding officer, at a preliminary  | 
      
      
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        hearing by the district and before a referral of the case to the  | 
      
      
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        State Office of Administrative Hearings, to determine a party's  | 
      
      
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        right to participate in a hearing according to Section  | 
      
      
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        36.415(b)(2); and | 
      
      
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                     (3)  set a deadline for a party to file a request to  | 
      
      
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        refer a contested case to the State Office of Administrative  | 
      
      
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        Hearings under Section 36.416. | 
      
      
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               SECTION 6.  The change in law made by this Act applies only  | 
      
      
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        to a permit or permit amendment application determined to be  | 
      
      
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        administratively complete on or after the effective date of this  | 
      
      
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        Act.  A permit or permit amendment application determined to be  | 
      
      
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        administratively complete 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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        determined to be administratively complete, and the former law is  | 
      
      
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        continued in effect for that purpose. | 
      
      
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               SECTION 7.  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, 2011. |