S.B. No. 727
 
 
 
 
AN ACT
  relating to groundwater conservation district management plans.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsections (a) and (b), Section 36.1071, Water
  Code, are amended to read as follows:
         (a)  Following notice and hearing, the district shall, in
  coordination with surface water management entities on a regional
  basis, develop a [comprehensive] management plan that [which]
  addresses the following management goals, as applicable:
               (1)  providing the most efficient use of groundwater;
               (2)  controlling and preventing waste of groundwater;
               (3)  controlling and preventing subsidence;
               (4)  addressing conjunctive surface water management
  issues;
               (5)  addressing natural resource issues;
               (6)  addressing drought conditions;
               (7)  addressing conservation, recharge enhancement,
  rainwater harvesting, precipitation enhancement, or brush control,
  where appropriate and cost-effective; and
               (8)  addressing in a quantitative manner the desired
  future conditions of the groundwater resources.
         (b)  The [A district] management plan, or any amendments to
  the [a district management] plan, shall be developed [by the
  district] using the district's best available data and forwarded to
  the regional water planning group for use in their planning
  process.
         SECTION 2.  Section 36.1072, Water Code, is amended by
  amending Subsections (a) through (d), (f), and (g) and adding
  Subsection (a-1) to read as follows:
         (a)  In this section, "development board" means the Texas
  Water Development Board.
         (a-1)  A district shall, not later than three years after the
  creation of the district or, if the district required confirmation,
  not later than three years after the election confirming the
  district's creation, submit the management plan required under
  Section 36.1071 to the executive administrator for review and
  approval.
         (b)  Within 60 days of receipt of a district's management
  plan adopted under Section 36.1071, readopted under Subsection (e)
  or (g) of this section, or amended under Section 36.1073, the
  executive administrator shall approve the district's [a
  management] plan if the plan is administratively complete.  A
  management plan is administratively complete when it contains the
  information required to be submitted under Section 36.1071(a) and
  (e).  The executive administrator may determine whether conditions
  justify waiver of the requirements under Section 36.1071(e)(4).
         (c)  Once the executive administrator has approved a
  district's management plan:
               (1)  the executive administrator may not revoke but may
  require revisions to the approved [groundwater conservation
  district] 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.
         (d)  A management plan takes effect on approval by the
  executive administrator or, if appealed, on approval by the
  development board [Texas Water Development Board].
         (f)  If the executive administrator does not approve the
  district's management plan, the executive administrator shall
  provide to the district, in writing, the reasons for the action.  
  Not later than the 180th day after the date a district receives
  notice that its management plan has not been approved, the district
  may submit a revised management plan for review and approval.  The
  executive administrator's decision may be appealed to the
  development board [Texas Water Development Board].  If the
  development board [Texas Water Development Board] decides not to
  approve the district's management plan on appeal, the district may
  request that the conflict be mediated.  The district and the board
  may seek the assistance of the Center for Public Policy Dispute
  Resolution at The University of Texas School of Law or an
  alternative dispute resolution system established under Chapter
  152, Civil Practice and Remedies Code, in obtaining a qualified
  impartial third party to mediate the conflict.  The cost of the
  mediation services must be specified in the agreement between the
  parties and the Center for Public Policy Dispute Resolution or the
  alternative dispute resolution system.  If the parties do not
  resolve the conflict through mediation, the decision of the
  development board [Texas Water Development Board] not to approve
  the district's management plan may be appealed to a district court
  in Travis County.  Costs for the appeal shall be set by the court
  hearing the appeal.  An appeal under this subsection is by trial de
  novo.  The commission shall not take enforcement action against a
  district under Subchapter I until the latest [later] of the
  expiration of the 180-day period, the date the development board
  [Texas Water Development Board] has taken final action withholding
  approval of a revised management plan, the date the mediation is
  completed, or the date a final judgment upholding the board's
  decision is entered by a district court.  An enforcement action may
  not be taken against a district by the commission or the state
  auditor under Subchapter I because the district's management plan
  and the approved regional water plan are in conflict while the
  parties are attempting to resolve the conflict before the
  development board, in mediation, or in court.  Rules of the district
  continue in full force and effect until all appeals under this
  subsection have been exhausted and the final judgment is adverse to
  the district.
         (g)  [In this subsection, "development board" means the
  Texas Water Development Board.]  A person with a legally defined
  interest in groundwater in a district, or the regional water
  planning group, may file a petition with the development board
  stating that a conflict requiring resolution may exist between the
  district's approved management plan developed under Section
  36.1071 and the state water plan.  If a conflict exists, the
  development board shall provide technical assistance to and
  facilitate coordination between the involved person or regional
  water planning group and the district to resolve the conflict.  Not
  later than the 45th day after the date the person or the regional
  water planning group files a petition with the development board,
  if the conflict has not been resolved, the district and the involved
  person or regional planning group may mediate the conflict.  The
  district and the involved person or regional planning group may
  seek the assistance of the Center for Public Policy Dispute
  Resolution at The University of Texas School of Law or an
  alternative dispute resolution system established under Chapter
  152, Civil Practice and Remedies Code, in obtaining a qualified
  impartial third party to mediate the conflict.  The cost of the
  mediation services must be specified in the agreement between the
  parties and the Center for Public Policy Dispute Resolution or the
  alternative dispute resolution system.  If the district and the
  involved person or regional planning group cannot resolve the
  conflict through mediation, the development board shall resolve the
  conflict not later than the 60th day after the date the mediation is
  completed.  The development board action under this provision may
  be consolidated, at the option of the board, with related action
  under Section 16.053(p).  If the development board determines that
  resolution of the conflict requires a revision of the approved
  [groundwater conservation district] management plan, the
  development board shall provide information to the district.  The
  district shall prepare any revisions to the plan based on the
  information provided by the development board and shall hold, after
  notice, at least one public hearing at some central location within
  the district.  The district shall consider all public and
  development board comments, prepare, revise, and adopt its
  management plan, and submit the revised management plan to the
  development board for approval.  On the request of the district or
  the regional water planning group, the development board shall
  include discussion of the conflict and its resolution in the state
  water plan that the development board provides to the governor, the
  lieutenant governor, and the speaker of the house of
  representatives under Section 16.051(e).  If the groundwater
  conservation district disagrees with the decision of the
  development board under this subsection, the district may appeal
  the decision to a district court in Travis County.  Costs for the
  appeal shall be set by the court hearing the appeal.  An appeal
  under this subsection is by trial de novo.
         SECTION 3.  Subsections (b) and (c), Section 36.108, Water
  Code, are amended to read as follows:
         (b)  If two or more districts are located within the
  boundaries of the same management area, each district shall
  [prepare a comprehensive management plan as required by Section
  36.1071 covering that district's respective territory.     On
  completion and approval of the plan as required by Section 36.1072,
  each district shall] forward a copy of that district's [the] new or
  revised management plan to the other districts in the management
  area.  The boards of the districts shall consider the plans
  individually and shall compare them to other management plans then
  in force in the management area.
         (c)  The presiding officer, or the presiding officer's
  designee, of each district located in whole or in part in the
  management area shall meet at least annually to conduct joint
  planning with the other districts in the management area and to
  review the management plans and accomplishments for the management
  area.  In reviewing the management plans, the districts shall
  consider:
               (1)  the goals of each management plan and its impact on
  planning throughout the management area;
               (2)  the effectiveness of the measures established by
  each district's management plan for conserving and protecting
  groundwater and preventing waste, and the effectiveness of these
  measures in the management area generally;
               (3)  any other matters that the boards consider
  relevant to the protection and conservation of groundwater and the
  prevention of waste in the management area; and
               (4)  the degree to which each management plan achieves
  the desired future conditions established during the joint planning
  process.
         SECTION 4.  Subsection (d), Section 36.113, Water Code, is
  amended to read as follows:
         (d)  Before granting or denying a permit or permit amendment,
  the district shall consider whether:
               (1)  the application conforms to the requirements
  prescribed by this chapter and is accompanied by the prescribed
  fees;
               (2)  the proposed use of water unreasonably affects
  existing groundwater and surface water resources or existing permit
  holders;
               (3)  the proposed use of water is dedicated to any
  beneficial use;
               (4)  the proposed use of water is consistent with the
  district's approved [certified water] management plan;
               (5)  if the well will be located in the Hill Country
  Priority Groundwater Management Area, the proposed use of water
  from the well is wholly or partly to provide water to a pond, lake,
  or reservoir to enhance the appearance of the landscape;
               (6)  the applicant has agreed to avoid waste and
  achieve water conservation; and
               (7)  the applicant has agreed that reasonable diligence
  will be used to protect groundwater quality and that the applicant
  will follow well plugging guidelines at the time of well closure.
         SECTION 5.  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 6.  Subsection (f), Section 36.122, Water Code, is
  amended to read as follows:
         (f)  In reviewing a proposed transfer of groundwater out of
  the district, the district shall consider:
               (1)  the availability of water in the district and in
  the proposed receiving area during the period for which the water
  supply is requested;
               (2)  the projected effect of the proposed transfer on
  aquifer conditions, depletion, subsidence, or effects on existing
  permit holders or other groundwater users within the district; and
               (3)  the approved regional water plan and approved 
  [certified] district management plan.
         SECTION 7.  Section 36.207, Water Code, is amended to read as
  follows:
         Sec. 36.207.  USE OF PERMIT FEES AUTHORIZED BY SPECIAL LAW.
  A district may use funds obtained from permit fees collected
  pursuant to the special law governing the district for any purpose
  consistent with the district's approved [certified water]
  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.  FAILURE TO SUBMIT A MANAGEMENT PLAN. If a
  district [board] fails to submit a management plan or to receive
  approval [certification] of its management plan under Section
  36.1072, or fails to submit or receive approval [certification] of
  an amendment to the management plan under Section 36.1073, the
  commission shall take appropriate action under Section 36.303.
         SECTION 9.  Section 36.3011, Water Code, is amended to read
  as follows:
         Sec. 36.3011.  FAILURE OF DISTRICT TO CONDUCT JOINT
  PLANNING. Not later than the 45th day after receiving the review
  panel's report under Section 36.108, the executive director or the
  commission shall take action to implement any or all of the panel's
  recommendations.  The commission may take any action against a
  district it considers necessary in accordance with Section 36.303
  if the commission finds that:
               (1)  a district has failed to submit its management
  plan to the executive administrator;
               (2)  a district has failed to adopt rules;
               (3)  the rules adopted by the district are not designed
  to achieve the desired future condition of the groundwater
  resources in the groundwater management area; or
               (4)  the groundwater in the management area is not
  adequately protected by the rules adopted by the district, or the
  groundwater in the management area is not adequately protected
  because of the district's failure to enforce substantial compliance
  with its rules.
         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, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 727 passed the Senate on
  March 29, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 727 passed the House on
  April 14, 2011, by the following vote:  Yeas 142, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor