85R20624 AAF-F
	By: Larson, et al.	H.B. No. 31

	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.  Sections 36.113(c) and (d), Water Code, are
	amended to read as follows:
	(c)  A district may require that only the following be
	included in the permit or permit amendment application, as
	applicable under the rules of the district:
	(1)  the name and mailing address of the applicant and
	the owner of the land on which the well will be located;
	(2)  if the applicant is other than the owner of the
	property, documentation establishing the applicable authority to
	construct and operate a well for the proposed use;
	(3)  a statement of the nature and purpose of the
	proposed use and the amount of water to be used for each purpose;
	(4)  a water conservation plan or a declaration that
	the applicant will comply with the district's management plan;
	(5)  the location of each well and the estimated rate at
	which water will be withdrawn;
	(6)  a water well closure plan or a declaration that the
	applicant will comply with well plugging guidelines and report
	closure to the commission; [and]
	(7)  a drought contingency plan; and
	(8)  other information:
	(A)  included in a rule of the district in effect
	on the date the application is submitted that specifies what
	information must be included in an application for a determination
	of administrative completeness; and
	(B)  reasonably related to an issue that a
	district is authorized to consider:
	(i)  under this chapter; or
	(ii)  a special law governing the district.
	(d)  This subsection does not apply to the renewal of an
	operating permit issued under Section 36.1145. Before granting or
	denying a permit, or a permit amendment issued in accordance with
	Section 36.1146, 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 projected effect of the proposed production
	[use of water] unreasonably affects aquifer conditions, depletion,
	or subsidence, 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 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 2.  Section 36.114(h), Water Code, is amended to
	read as follows:
	(h)  An application is administratively complete if it
	contains the [application requires] information set forth under [in
	accordance with] Sections 36.113 and 36.1131. A district may not
	require that additional information be included in an application
	for a determination of administrative completeness.
	SECTION 3.  Subchapter D, Chapter 36, Water Code, is amended
	by adding Section 36.1147 to read as follows:
	Sec. 36.1147.  LIMITATION ON APPLICABILITY OF RULES. The
	rules of a district in effect on the date an application for a
	permit or a permit amendment is submitted to the district are the
	only district rules that may govern the district's decision to
	grant or deny the application.
	SECTION 4.  The heading to Section 36.122, Water Code, is
	amended to read as follows:
	Sec. 36.122.  EXPORT [TRANSFER] OF GROUNDWATER OUT OF
	DISTRICT.
	SECTION 5.  Section 36.122, Water Code, is amended by
	amending Subsections (a), (b), (c), and (d) and adding Subsections
	(f-1) and (f-2) to read as follows:
	(a)  This section applies to [If] an application for a permit
	or an amendment to a permit under Section 36.113 that proposes the
	export [transfer] of groundwater for use outside of a district's
	boundaries[, the district may also consider the provisions of this
	section in determining whether to grant or deny the permit or permit
	amendment].
	(b)  A district may promulgate rules requiring a person to
	obtain an operating [a] permit or an amendment to an operating [a]
	permit under Section 36.113 from the district to produce and export
	[for the transfer of] groundwater.  A district may not require a
	separate permit for the export of groundwater for use outside [out]
	of the district [to:
	[(1)     increase, on or after March 2, 1997, the amount of
	groundwater to be transferred under a continuing arrangement in
	effect before that date; or
	[(2)     transfer groundwater out of the district on or
	after March 2, 1997, under a new arrangement].
	(c)  Except as provided in Subsection (e) [Section
	36.113(e)], the district may not impose more restrictive
	requirements or permit conditions on exporters [transporters] than
	the district imposes on [existing] in-district users. A district
	may not deny a permit because the applicant intends to export
	groundwater for use outside of the district.
	(d)  The district may impose a reasonable fee for processing
	an application under this section. The fee may not exceed fees that
	the district imposes for processing other applications under
	Section 36.113. An application filed under [to comply with] this
	section shall be considered and processed under the same procedures
	as other applications for permits under Section 36.113 [and shall
	be combined with applications filed to obtain a permit for
	in-district water use under Section 36.113 from the same
	applicant].
	(f-1)  A term for a permit issued under this section that
	existed on May 29, 2017, shall automatically be extended on or
	before its expiration:
	(1)  to a term that is not shorter than the term of an
	operating permit for the production of water to be exported that is
	in effect at the time of the extension; and
	(2)  for each additional term for which that operating
	permit for production is renewed under Section 36.1145 or remains
	in effect under Section 36.1146.
	(f-2)  A term automatically extended under Subsection (f-1)
	continues to be subject to conditions contained in the permit as
	issued before the automatic extension.
	SECTION 6.  Chapter 36, Water Code, is amended by adding
	Subchapter M-1 to read as follows:
	SUBCHAPTER M-1. MORATORIUM ON ISSUING PERMIT
	Sec. 36.426.  PROCEDURE FOR ADOPTING MORATORIUM. A district
	may not adopt a moratorium on the issuance of a permit or permit
	amendment unless the district:
	(1)  complies with the notice and hearing procedures
	prescribed by Section 36.427; and
	(2)  makes written findings supporting the district's
	determination regarding the issuance, including the district's
	justification for imposing the moratorium, if applicable.
	Sec. 36.427.  NOTICE AND PUBLIC HEARING REQUIREMENTS. (a) A
	district may impose a moratorium on the issuance of a permit or
	permit amendment only after the district conducts a public hearing
	as provided by this section. The public hearing must provide
	residents of the district and other affected parties an opportunity
	to be heard.
	(b)  The district shall publish notice of the date, time, and
	place of the hearing in a newspaper of general circulation in the
	district on or before the fourth day before the date of the hearing.
	(c)  During the period beginning on the fifth business day
	after the date a notice is published under Subsection (b) and ending
	on the date the district makes its determination under Subsection
	(d), a temporary moratorium is imposed. During that period, a
	district may stop issuing permits or permit amendments.
	(d)  Not later than the 12th day after the date of the public
	hearing, the district shall make a final determination on whether
	to impose the moratorium and shall issue written findings
	supporting the district's determination, including the district's
	justification for imposing the moratorium, if applicable.
	Sec. 36.428.  EXPIRATION OF MORATORIUM; EXTENSION
	PROHIBITED. A moratorium imposed under this subchapter expires on
	the 90th day after the date the district makes its determination
	under Section 36.427(d) to impose the moratorium. The district may
	not extend a moratorium imposed under this subchapter.
	SECTION 7.  Sections 36.122(f), (g), (h), (i), (j), (k),
	(l), (m), (n), (o), (p), and (q), Water Code, are repealed.
	SECTION 8.  A moratorium on the issuance of a permit or
	permit amendment that is adopted by a groundwater conservation
	district before September 1, 2017, may not continue in effect after
	November 30, 2017.
	SECTION 9.  (a)  A permit to export groundwater approved by a
	groundwater conservation district before the effective date of this
	Act is validated and confirmed in all respects.  This subsection
	does not apply to a permit to export groundwater that is subject to
	litigation:
	(1)  that is pending on the effective date of this Act;
	or
	(2)  that results in final judgment that may not be
	appealed that the permit is invalid.
	(b)  An administratively complete permit application to
	export groundwater received by a groundwater conservation district
	before the effective date of this Act is governed by the law in
	effect when the application became administratively complete.  The
	former law is continued for the purpose of processing an
	application received before the effective date of this Act.
	SECTION 10.  To the extent of any conflict, this Act prevails
	over another Act of the 85th Legislature, Regular Session, 2017,
	relating to changes to Chapter 36, Water Code, or nonsubstantive
	additions to and corrections in enacted codes.
	SECTION 11.  This Act takes effect September 1, 2017.