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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to regulation of the production of retail public utility  | 
      
      
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        wells by a groundwater conservation district. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 36.002(d), Water Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               (d)  This section does not: | 
      
      
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                     (1)  prohibit a district from limiting or prohibiting  | 
      
      
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        the drilling of a well by a landowner for failure or inability to  | 
      
      
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        comply with minimum well spacing or tract size requirements adopted  | 
      
      
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        by the district; | 
      
      
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                     (2)  affect the ability of a district to regulate  | 
      
      
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        groundwater production as authorized under Section 36.113, 36.116,  | 
      
      
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        36.1161, or 36.122 or otherwise under this chapter or a special law  | 
      
      
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        governing a district; or | 
      
      
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                     (3)  require that a rule adopted by a district allocate  | 
      
      
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        to each landowner a proportionate share of available groundwater  | 
      
      
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        for production from the aquifer based on the number of acres owned  | 
      
      
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        by the landowner. | 
      
      
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               SECTION 2.  Subchapter D, Chapter 36, Water Code, is amended  | 
      
      
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        by adding Section 36.1161 to read as follows: | 
      
      
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               Sec. 36.1161.  REGULATION OF PRODUCTION BY RETAIL PUBLIC  | 
      
      
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        UTILITIES.  (a)  In this section, "retail public utility" has the  | 
      
      
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        meaning assigned by Section 13.002. | 
      
      
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               (b)  This section applies only to a district that regulates  | 
      
      
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        production under Section 36.116 based on tract size or acreage. | 
      
      
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               (c)  A retail public utility may petition a district to  | 
      
      
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        authorize the retail public utility to produce groundwater based  | 
      
      
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        on: | 
      
      
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                     (1)  the aggregate acreage owned or leased by the   | 
      
      
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        retail public utility; and  | 
      
      
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                     (2)  the acreage of the landowners served by the retail  | 
      
      
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        public utility as provided by Subsection (d). | 
      
      
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               (d)  A district may only base a retail public utility's  | 
      
      
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        authorized production amount under this section in a manner  | 
      
      
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        consistent with district rules and based on acreage of landowners  | 
      
      
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        served by the retail public utility if: | 
      
      
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                     (1)  the utility has acquired from the landowner a real  | 
      
      
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        property interest in the groundwater beneath the land; or | 
      
      
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                     (2)  the landowner has provided written permission for  | 
      
      
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        the retail public utility to exercise the utility's real property  | 
      
      
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        interest in the groundwater beneath the landowner's land until the  | 
      
      
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        landowner: | 
      
      
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                           (A)  drills a well and produces water from the  | 
      
      
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        land; or | 
      
      
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                           (B)  transfers title to the land or real property  | 
      
      
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        interest in the groundwater to another person. | 
      
      
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               (e)  The district shall hold a public hearing to consider  | 
      
      
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        approval of a petition submitted under this section.  The district  | 
      
      
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        shall require the retail public utility submitting the petition to  | 
      
      
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        provide written notice of the hearing not later than the 60th day  | 
      
      
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        before the date of the hearing to: | 
      
      
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                     (1)  the landowners served by the retail public  | 
      
      
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        utility; | 
      
      
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                     (2)  persons with permitted or registered wells in the  | 
      
      
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        district; and | 
      
      
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                     (3)  persons not described by Subdivision (1) or (2)  | 
      
      
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        who have a property interest in groundwater under land that is  | 
      
      
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        within one mile of the utility's wells in the district. | 
      
      
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               (f)  The district shall consider a petition at a hearing  | 
      
      
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        under this section in the same manner as a rulemaking hearing under  | 
      
      
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        Section 36.101. | 
      
      
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               SECTION 3.  Section 36.414(a), Water Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               (a)  Except as provided by Subsection (b), a district shall  | 
      
      
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        process applications from a single applicant under consolidated  | 
      
      
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        notice and hearing procedures on written request by the applicant  | 
      
      
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        if the district requires a separate permit or permit amendment  | 
      
      
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        application for: | 
      
      
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                     (1)  drilling, equipping, operating, or completing a  | 
      
      
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        well or substantially altering the size of a well or well pump under  | 
      
      
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        Section 36.113; | 
      
      
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                     (2)  the spacing of water wells or the production of  | 
      
      
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        groundwater under Section 36.116 or 36.1161; or | 
      
      
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                     (3)  transferring groundwater out of a district under  | 
      
      
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        Section 36.122. | 
      
      
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               SECTION 4.  Section 36.116(c), Water Code, is repealed. | 
      
      
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               SECTION 5.  This Act takes effect September 1, 2019. |