84R15264 SLB-F
	By: Keffer	H.B. No. 200

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of groundwater.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 36.0015, Water Code, is amended to read
	as follows:
	Sec. 36.0015.  PURPOSE. In order to provide for the
	conservation, preservation, protection, recharging, and prevention
	of waste of groundwater, and of groundwater reservoirs or their
	subdivisions, and to control subsidence caused by withdrawal of
	water from those groundwater reservoirs or their subdivisions,
	consistent with the objectives of Section 59, Article XVI, Texas
	Constitution, groundwater conservation districts may be created as
	provided by this chapter. Groundwater conservation districts
	created as provided by this chapter are the state's preferred
	method of groundwater management in order to protect property
	rights, balance the development and conservation of groundwater to
	meet the needs of this state, and use the best available science in
	the development of groundwater through rules developed, adopted,
	and promulgated by a district in accordance with the provisions of
	this chapter.
	SECTION 2.  The heading to Section 36.1083, Water Code, is
	amended to read as follows:
	Sec. 36.1083.  APPEAL OF DESIRED FUTURE CONDITIONS:
	CONTESTED CASE.
	SECTION 3.  Section 36.1083, Water Code, is amended by
	amending Subsections (a) and (b) and adding Subsections (e) through
	(m) to read as follows:
	(a)  In this section:
	(1)  "Affected person" has the meaning assigned by
	Section 36.1082.
	(2)  "Development [, "development] board" means the
	Texas Water Development Board.
	(3)  "Office" means the State Office of Administrative
	Hearings.
	(b)  Not later than the 120th day after the date on which a
	district adopts a desired future condition under Section
	36.108(d-4), an affected [A] person [with a legally defined
	interest in the groundwater in the management area, a district in or
	adjacent to the management area, or a regional water planning group
	for a region in the management area] may file a petition with the
	development board requesting that the development board contract
	with the office to conduct a contested case hearing on the matter of
	appealing the approval of the desired future condition.  The matter
	referred for hearing may include as an issue the reasonableness of
	the desired future condition, but may not include as an issue a
	reason for an inquiry described by Section 36.1082(b) [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 management area].
	(e)  Not later than the 45th day after the date of the
	deadline for filing a petition under Subsection (b), the
	development board shall:
	(1)  contract with the office to conduct the contested
	case hearing requested under Subsection (b); and
	(2)  submit to the office a copy of any petitions
	related to the hearing requested under Subsection (b) and received
	by the development board.
	(f)  During the period between the filing of the petition and
	the actions described by Subsection (e), the development board may
	facilitate coordination between the petitioner and the district to
	resolve the issues raised in the petition. If the petitioner and
	the district cannot resolve the issues raised in the petition, a
	hearing must be conducted in accordance with Chapter 2001,
	Government Code, and rules of the development board and the office.
	(g)  The development board may adopt rules for notice and
	procedures for hearings conducted under this section. Rules
	adopted under this section must provide for the development board
	to provide general notice of the hearing to the public and
	individual notice of the hearing to the participants, including the
	district, the petitioner, a party to the hearing identified under
	Subsection (h)(3), the commission, and each nonparty district and
	regional planning group in the same management area as the district
	that is a party to the hearing.
	(h)  Before a hearing conducted under this section, the
	office shall hold a prehearing conference to determine preliminary
	matters, including:
	(1)  whether the petition should be dismissed for
	failure to state a claim on which relief can be granted;
	(2)  whether a person seeking to participate in the
	hearing is an affected person who is eligible to participate; and
	(3)  which persons shall be named as parties to the
	hearing.
	(i)  The petitioner shall pay the costs of the contract with
	the office to conduct the hearing under this section. The
	petitioner shall pay to the development board an amount sufficient
	to pay the contract amount before the hearing begins. After the
	hearing, the development board shall assess costs to one or more of
	the parties participating in the hearing and shall refund any
	excess money to the petitioner. The development board shall adopt
	rules for the manner of payment. The development board shall
	consider the following in apportioning costs of the hearing:
	(1)  the party who requested the hearing;
	(2)  the party who prevailed in the hearing;
	(3)  the financial ability of the party to pay the
	costs;
	(4)  the extent to which the party participated in the
	hearing; and
	(5)  any other factor relevant to a just and reasonable
	assessment of costs.
	(j)  On receipt of the administrative law judge's findings of
	fact and conclusions of law in a proposal for decision, including a
	dismissal of a petition under Subsection (h), the development board
	shall issue a final order stating the development board's decision
	on the contested matter and the development board's findings of
	fact and conclusions of law. The development board may change a
	finding of fact or conclusion of law made by the administrative law
	judge, or may vacate or modify an order issued by the administrative
	law judge, as provided by Section 2001.058(e), Government Code.
	(k)  If the development board in its final order finds that a
	desired future condition is unreasonable, the districts in the same
	management area as the district that participated in the hearing
	shall reconvene in a joint planning meeting not later than the 30th
	day after the date of the final order for the purpose of revising
	the desired future condition.
	(l)  A final order by the development board described by
	Subsection (k) does not automatically invalidate the adoption of a
	desired future condition by a district that was not a party to the
	hearing conducted under this section.
	(m)  The administrative law judge may consolidate hearings
	requested under this section that affect two or more districts. The
	administrative law judge shall prepare separate findings of fact
	and conclusions of law for each district included as a party in a
	multidistrict hearing.
	SECTION 4.  Subchapter D, Chapter 36, Water Code, is amended
	by adding Section 36.10835 to read as follows:
	Sec. 36.10835.  JUDICIAL APPEAL OF DESIRED FUTURE
	CONDITIONS. (a)  A final order issued under Section 36.1083 may be
	appealed to the district court in Travis County under the
	substantial evidence standard of review as provided by Section
	2001.174, Government Code. If the court finds that a desired future
	condition is unreasonable, the court shall strike the desired
	future condition and order the districts in the same management
	area as the district that participated in the hearing to reconvene
	in a joint planning meeting not later than the 30th day after the
	date of the court order for the purpose of revising the desired
	future condition.
	(b)  A court's finding under this section does not apply to a
	desired future condition that is not a matter before the court.
	SECTION 5.  Subchapter D, Chapter 36, Water Code, is amended
	by adding Section 36.1145 to read as follows:
	Sec. 36.1145.  APPEAL OF PERMIT OR PERMIT AMENDMENT DENIAL.
	(a)  In this section, "development board" means the Texas Water
	Development Board.
	(b)  An applicant for a permit or permit amendment or a
	person who participated as a party in a permit or permit amendment
	hearing before the district may file a petition with the
	development board to request an appeal of an action by a district on
	an application for a permit or permit amendment submitted under
	Section 36.113 or 36.114. The petitioner must state the basis for
	the appeal.
	(c)  In response to a petition under this section, the
	development board shall hold at least one hearing at a central
	location in the district 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.
	(d)  The development board shall review the petition,
	testimony at the hearing, and evidence presented by the parties and
	shall consider:
	(1)  only issues raised before the district during the
	permit or permit amendment process; and
	(2)  whether the district's actions in regard to the
	permit or permit amendment are consistent with Section 36.1132.
	(e)  After review under Subsection (d), the development
	board shall issue its findings and recommendations regarding the
	permit or permit amendment.
	(f)  On receipt of the development board's findings and
	recommendations, the district shall reconsider action on the permit
	or permit amendment, giving consideration to the development
	board's findings and recommendations and district rules, and issue
	a final decision on the permit or permit amendment.
	(g)  An applicant may appeal a final decision issued under
	Subsection (f) by filing suit against the district as provided by
	Section 36.251.
	(h)  Chapter 2001, Government Code, does not apply to a
	petition filed under this section or to a hearing held under this
	section.
	(i)  The development board may adopt rules to implement this
	section.
	SECTION 6.  Sections 36.1083(c) and (d), Water Code, are
	repealed.
	SECTION 7.  (a)  Section 36.1083, Water Code, as amended by
	this Act, and Section 36.10835, Water Code, as added by this Act,
	apply only to a desired future condition adopted by a groundwater
	conservation district on or after the effective date of this Act.  A
	desired future condition adopted before that date is governed by
	the law in effect on the date the desired future condition was
	adopted, and the former law is continued in effect for that purpose.
	(b)  Section 36.1145, Water Code, as added by this Act,
	applies only to a permit or permit amendment application submitted
	to a groundwater conservation district on or after the effective
	date of this Act.  A permit or permit amendment application
	submitted before that date is governed by the law in effect on the
	date the permit or permit amendment application was submitted, and
	the former law is continued in effect for that purpose.
	SECTION 8.  This Act takes effect September 1, 2015.