By: Price H.B. No. 3535
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the management, operation, rulemaking authority, and
  oversight of groundwater conservation districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.1071, Water Code, is amended by
  amending Subsections (c) and (f) and adding Subsection (f-1) and
  (i) to read as follows:
         (c)  The commission and the Texas Water Development Board
  shall provide technical assistance to a district in the development
  of the management plan required under Subsection (a) that [which]
  may include, if requested by the district, a preliminary review and
  comment on the plan prior to final approval by the Texas Water
  Development Board [board].  If such review and comment by the
  commission is requested, the commission shall provide comment not
  later than 30 days from the date the request is received.
         (f)  [The district shall adopt rules necessary to implement
  the management plan.]  Prior to the development of the district's
  management plan and the final [its] approval of that plan under
  Section 36.1072, the district:
               (1)  may accept applications for permits submitted to
  the district under Section 36.113;
               (2)  may issue interim permits as provided by Section
  36.1133;
               (3)  may [not] adopt rules relating to:
                     (A)  [other than rules pertaining to] the
  registration of, [and] interim permitting of, metering of,
  reporting of production from, spacing of, and assessment of fees
  based on authorized or actual production of water from new and
  existing wells; and
                     (B)  [and rules governing spacing and] procedure
  before the district's board; and
               (4)  [however, the district] may not:
                     (A)  adopt any rules limiting the production of
  wells, except rules requiring that groundwater produced from a well
  be put to a nonwasteful, beneficial use; or
                     (B)  take any action regarding a permit [.     The
  district may accept applications for permits under Section 36.113,
  provided the district does not act on any such] application, other
  than an application for an interim permit [until the district's
  management plan is approved as provided in Section 36.1072].
         (f-1)  After the district's management plan is finally
  approved under Section 36.1072, the district shall adopt or amend
  rules limiting the production of wells or allocating groundwater
  and review and amend the terms of any interim permits issued by the
  district as necessary to implement the management plan and achieve
  the applicable desired future conditions. The district may not
  adopt or amend rules limiting the production of wells or allocating
  groundwater if the district fails to:
               (1)  adopt a management plan as required by this
  section;
               (2)  submit a management plan to the executive
  administrator as required by Section 36.1072; and
               (3)  receive approval of the management plan under
  Section 36.1072.
         (i)  The commission shall take action under section 36.303
  pursuant to a petition filed under Section 36.1082 or on the
  commission's own initiative to ensure that all districts in the
  state comply with the requirements of this section.
         SECTION 2.  Section 36.1072, Water Code, is amended by
  amending Subsection (c) and adding Subsection (c-1) to read as
  follows:
         (c)  Once the executive administrator has granted
  administrative approval to [approved] a district's management
  plan:
               (1)  the executive administrator may not revoke but may
  require revisions to the approved management plan as provided by
  Subsection (g); 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 a request for additional information does not render
  the management plan unapproved].
         (c-1)  Not later than the 60th day after the date of the
  administrative approval of a district's management plan under
  Subsection (c), the executive administrator shall review the
  management plan to determine whether goals of the management plan
  are consistent with the achievement of the desired future
  conditions established under Section 36.108(d) that are applicable
  to all or part of the district, considering any available
  information regarding groundwater levels, and:
               (1)  request additional information from the district;
               (2)  recommend that the district make substantive
  changes to the management plan; or
               (3)  approve the management plan.
         SECTION 3.  Section 36.1073, Water Code, is amended to read
  as follows:
         Sec. 36.1073.  AMENDMENT TO MANAGEMENT PLAN. Any amendment
  to a district's [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 approve any amendment that [which] substantially
  affects the management plan in accordance with the procedures
  established under Section 36.1072.
         SECTION 4.  Subsection (b), Section 36.1082, Water Code, is
  amended to read as follows:
         (b)  An affected person may file a petition with the
  commission requesting an inquiry for any of the following reasons:
               (1)  a district fails to submit its management plan to
  the executive administrator;
               (2)  a district fails to participate in the joint
  planning process under section 36.108;
               (3)  a district fails to adopt rules;
               (4)  a district fails to adopt the applicable desired
  future conditions adopted by the management area at a joint
  meeting;
               (5)  a district fails to update its management plan
  before the second anniversary of the adoption of desired future
  conditions by the management area;
               (6)  a district fails to update its rules to implement
  the applicable desired future conditions before the first
  anniversary of the date it updated its management plan with the
  adopted desired future conditions;
               (7)  the rules adopted by a district are not designed to
  achieve the desired future conditions adopted by the management
  area during the joint planning process;
               (8)  the rules adopted by the district do not achieve
  the applicable desired future condition;
               (9)(8)  the groundwater in the management area is not
  adequately protected by the rules adopted by a district; or
               (10)(9)  the groundwater in the management area is not
  adequately protected due to the failure of a district to enforce
  substantial compliance with its rules.
         SECTION 5.  Section 36.1083(d), Water Code, is amended to
  read as follows:
         (d)  The districts shall prepare [a] revised conditions
  [plan] in accordance with development board recommendations and
  hold, after notice, at least one public hearing at a central
  location in the management area.  After consideration of all public
  and development board comments, the districts shall revise the
  conditions and submit the conditions to the development board for
  review.
         SECTION 6.  Subchapter D, Chapter 36, Water Code, is amended
  by adding Section 36.1133 to read as follows:
         Sec. 36.1133.  INTERIM PERMITS. (a) Before a district's
  first management plan is finally approved under Section 36.1072, a
  district may issue an interim permit for any activity regulated by
  the district for which a permit is required, subject to:
               (1)  rules adopted by the district; and
               (2)  modification of the terms of the interim permit as
  necessary to implement the district's management plan and achieve
  the applicable desired future conditions after the management plan
  is finally approved under that section.
         (b)  Section 36.113 and the provisions of this chapter
  relating to permits issued under that section apply to a permit
  issued under this section to the extent those provisions may be made
  applicable.
         SECTION 7.  Section 36.207, Water Code, is amended to read as
  follows:
         Sec. 36.207.  USE OF PRODUCTION [PERMIT] FEES AUTHORIZED BY
  SPECIAL LAW.  A district may use funds obtained from production
  [permit] fees collected pursuant to the special law governing the
  district for any purpose consistent with the district's approved
  management plan including, without limitation, making grants,
  loans, or contractual payments to achieve, facilitate, or expedite
  reductions in groundwater pumping or the development or
  distribution of alternative water supplies.
         SECTION 8.  Section 36.301, Water Code, is amended to read as
  follows:
         Sec. 36.301.  VIOLATIONS RELATED TO [FAILURE TO SUBMIT A]
  MANAGEMENT PLAN. The commission shall take appropriate action
  under Section 36.303 if:
               (1)  a district adopts or amends a rule in violation of
  Section 36.1071(f-1);
               (2)  [If] a district fails to submit a management plan
  or to receive approval of the [its] management plan under Section
  36.1072;
               (3)  a district fails to timely readopt the management
  plan or to submit the readopted management plan to the executive
  administrator for approval in accordance with Section 36.1072(e);
               (4)  the executive administrator determines that a
  readopted management plan does not meet the requirements for
  approval, and the district has exhausted all appeals;[,] or
               (5)  a district fails to submit or receive approval of
  an amendment to the management plan under Section 36.1073[, the
  commission shall take appropriate action under Section 36.303].
         SECTION 9.  (a) Section 36.1071, Water Code, as amended by
  this Act, applies only to the rulemaking authority of a groundwater
  conservation district related to a management plan or an amendment
  to a management plan that is submitted by the district to the
  executive administrator of the Texas Water Development Board for
  review and approval on or after the effective date of this Act.  A
  district's rulemaking authority related to a management plan or an
  amendment to a management plan that is submitted to the executive
  administrator of the Texas Water Development Board before the
  effective date of this Act is governed by the law in effect when the
  management plan or amendment was submitted, and the former law is
  continued in effect for that purpose.
         (b)  The change in law made by this Act to Section 36.301,
  Water Code, applies only to a violation by a groundwater
  conservation district that occurs on or after the effective date of
  this Act.  A violation that occurs before the effective date of this
  Act is governed by the law in effect on the date the violation
  occurred, and the former law is continued in effect for that
  purpose.
         SECTION 10.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2013.