H.B. No. 1763
AN ACT
relating to the notice, hearing, rulemaking, and permitting 
procedures for groundwater conservation districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 16.053, Water Code, is amended by 
amending Subsections (e) and (p) and adding Subsections (p-1), 
(p-2), (p-3), and (p-4) to read as follows:
	(e)  Each regional water planning group shall submit to the 
development board a regional water plan that:
		(1)  is consistent with the guidance principles for the 
state water plan adopted by the development board under Section 
16.051(d);
		(2)  provides information based on data provided or 
approved by the development board in a format consistent with the 
guidelines provided by the development board under Subsection (d);
		(3)  identifies:                                                              
			(A)  each source of water supply in the regional 
water planning area, including information supplied by the 
executive administrator on the amount of managed available 
groundwater in accordance with the guidelines provided by the 
development board under Subsections (d) and (f);
			(B)  factors specific to each source of water 
supply to be considered in determining whether to initiate a 
drought response; and
			(C)  actions to be taken as part of the response;                            
		(4)  has specific provisions for water management 
strategies to be used during a drought of record;
		(5)  includes but is not limited to consideration of 
the following:         
			(A)  any existing water or drought planning 
efforts addressing all or a portion of the region;
			(B)  approved [certified] groundwater 
conservation district management plans and other plans submitted 
under Section 16.054;
			(C)  all potentially feasible water management 
strategies, including but not limited to improved conservation, 
reuse, and management of existing water supplies, conjunctive use,
acquisition of available existing water supplies, and development 
of new water supplies;
			(D)  protection of existing water rights in the 
region;                    
			(E)  opportunities for and the benefits of 
developing regional water supply facilities or providing regional 
management of water supply facilities;
			(F)  appropriate provision for environmental 
water needs and for the effect of upstream development on the bays, 
estuaries, and arms of the Gulf of Mexico and the effect of plans on 
navigation;
			(G)  provisions in Section 11.085(k)(1) if 
interbasin transfers are contemplated;
			(H)  voluntary transfer of water within the region 
using, but not limited to, regional water banks, sales, leases, 
options, subordination agreements, and financing agreements; and
			(I)  emergency transfer of water under Section 
11.139, including information on the part of each permit, certified 
filing, or certificate of adjudication for nonmunicipal use in the 
region that may be transferred without causing unreasonable damage 
to the property of the nonmunicipal water rights holder;
		(6)  identifies river and stream segments of unique 
ecological value and sites of unique value for the construction of 
reservoirs that the regional water planning group recommends for 
protection under Section 16.051;
		(7)  assesses the impact of the plan on unique river and 
stream segments identified in Subdivision (6) if the regional water 
planning group or the legislature determines that a site of unique 
ecological value exists; and
		(8)  describes the impact of proposed water projects on 
water quality.      
	(p)  If a groundwater conservation district files a petition 
with the development board stating that a conflict requiring 
resolution may exist between the district's approved [certified 
groundwater conservation district] management plan developed under 
Section 36.1071 and an [the] approved state [regional] water plan, 
the development board shall provide technical assistance to and
facilitate coordination between the district and the involved 
region to resolve the conflict.  Not later than the 45th day after 
the date the groundwater conservation district files a petition 
with the development board, if the conflict has not been resolved, 
the district and the involved region shall mediate the conflict.  
The district and the involved region 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 region cannot resolve the conflict 
through mediation [remains], the development board shall resolve 
the conflict not later than the 60th day after the date the 
mediation is completed as provided by Subsections (p-1) and (p-2).
	(p-1)  If the development board determines that resolution 
of the conflict requires a revision of an approved regional water 
plan, the development board shall suspend the approval of that plan 
and provide information to the regional water planning group.  The 
regional water planning group shall prepare any revisions to its 
plan specified by the development board and shall hold, after 
notice, at least one public hearing at some central location within 
the regional water planning area.  The regional water planning 
group shall consider all public and development board comments, 
prepare, revise, and adopt its plan, and submit the revised plan to 
the development board for approval and inclusion in the state water 
plan.
	(p-2)  If the development board determines that resolution 
of the conflict requires a revision of the district's approved
[certified] groundwater conservation district management plan, the 
development board shall [suspend the certification of that plan 
and] provide information to the district.  The groundwater district 
shall prepare any revisions to its plan based on the information 
provided [specified] by the development board and shall hold, after 
notice, at least one public hearing at some central location within 
the district.  The groundwater district shall consider all public 
and development board comments, prepare, revise, and adopt its 
plan, and submit the revised plan to the development board [for 
certification].
	(p-3)  If the groundwater conservation district disagrees 
with the decision of the development board under Subsection (p), 
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.
	(p-4)  On the request of the involved region or groundwater 
conservation district, 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).
	SECTION 2.  Section 36.001, Water Code, is amended by 
striking Subdivision (17) and adding Subdivisions (4-a) and (24) 
through (29) to read as follows:
		(4-a)  "Federal conservation program" means the 
Conservation Reserve Program of the United States Department of 
Agriculture.
		[(17)  "Applicant" means a newly confirmed district 
applying for a loan from the loan fund.]
		(24)  "Total aquifer storage" means the total 
calculated volume of groundwater that an aquifer is capable of 
producing.
		(25)  "Managed available groundwater" means the amount 
of water that may be permitted by a district for beneficial use in 
accordance with the desired future condition of the aquifer as 
determined under Section 36.108.
		(26)  "Recharge" means the amount of water that 
infiltrates to the water table of an aquifer.
		(27)  "Inflows" means the amount of water that flows 
into an aquifer from another formation.
		(28)  "Discharge" means the amount of water that leaves 
an aquifer by natural or artificial means.
		(29)  "Evidence of historic or existing use" means 
evidence that is material and relevant to a determination of the 
amount of groundwater beneficially used without waste by a permit 
applicant during the relevant time period set by district rule that 
regulates groundwater based on historic use.  Evidence in the form 
of oral or written testimony shall be subject to cross-examination. 
The Texas Rules of Evidence govern the admissibility and 
introduction of evidence of historic or existing use, except that 
evidence not admissible under the Texas Rules of Evidence may be 
admitted if it is of the type commonly relied upon by reasonably 
prudent persons in the conduct of their affairs.
	SECTION 3.  Section 36.101, Water Code, is amended by 
amending Subsection (b) and adding Subsections (d)-(l) to read as 
follows:
	(b)  Except as provided by Section 36.1011, after [After] 
notice and hearing, the board shall adopt and enforce rules to 
implement this chapter, including rules governing procedure before 
the board.  [Notice in this section shall include publication of the 
agenda of the hearing in one or more newspapers of general 
circulation in the county or counties in which the district is 
located.]
	(d)  Not later than the 20th day before the date of a 
rulemaking hearing, the general manager or board shall:
		(1)  post notice in a place readily accessible to the 
public at the district office;
		(2)  provide notice to the county clerk of each county 
in the district;
		(3)  publish notice in one or more newspapers of 
general circulation in the county or counties in which the district 
is located;
		(4)  provide notice by mail, facsimile, or electronic 
mail to any person who has requested notice under Subsection (i); 
and
		(5)  make available a copy of all proposed rules at a 
place accessible to the public during normal business hours and, if 
the district has a website, post an electronic copy on a generally 
accessible Internet site.
	(e)  The notice provided under Subsection (d) must include:             
		(1)  the time, date, and location of the rulemaking 
hearing;         
		(2)  a brief explanation of the subject of the 
rulemaking hearing; and
		(3)  a location or Internet site at which a copy of the 
proposed rules may be reviewed or copied.
	(f)  The presiding officer shall conduct a rulemaking 
hearing in the manner the presiding officer determines to be most 
appropriate to obtain information and comments relating to the 
proposed rule as conveniently and expeditiously as possible.  
Comments may be submitted orally at the hearing or in writing.  The 
presiding officer may hold the record open for a specified period 
after the conclusion of the hearing to receive additional written 
comments.
	(g)  A district may require each person who participates in a 
rulemaking hearing to submit a hearing registration form stating:
		(1)  the person's name;                                                
		(2)  the person's address; and                                         
		(3)  whom the person represents, if the person is not at 
the hearing in the person's individual capacity.
	(h)  The presiding officer shall prepare and keep a record of 
each rulemaking hearing in the form of an audio or video recording 
or a court reporter transcription.
	(i)  A person may submit to the district a written request 
for notice of a rulemaking hearing.  A request is effective for the 
remainder of the calendar year in which the request is received by 
the district.  To receive notice of a rulemaking hearing in a later 
year, a person must submit a new request.  An affidavit of an 
officer or employee of the district establishing attempted service 
by first class mail, facsimile, or e-mail to the person in 
accordance with the information provided by the person is proof 
that notice was provided by the district.
	(j)  A district may use an informal conference or 
consultation to obtain the opinions and advice of interested 
persons about contemplated rules and may appoint advisory 
committees of experts, interested persons, or public 
representatives to advise the district about contemplated rules.
	(k)  Failure to provide notice under Subsection (d)(4) does 
not invalidate an action taken by the district at a rulemaking 
hearing.
	(l)  Subsections (b)-(k) do not apply to the Edwards Aquifer 
Authority.
	SECTION 4.  Subchapter D, Chapter 36, Water Code, is amended 
by adding Section 36.1011 to read as follows:
	Sec. 36.1011.  EMERGENCY RULES.  (a) A board may adopt an 
emergency rule without prior notice or hearing, or with an 
abbreviated notice and hearing, if the board:
		(1)  finds that a substantial likelihood of imminent 
peril to the public health, safety, or welfare, or a requirement of 
state or federal law, requires adoption of a rule on less than 20 
days' notice; and
		(2)  prepares a written statement of the reasons for 
its finding under Subdivision (1).
	(b)  Except as provided by Subsection (c), a rule adopted 
under this section may not be effective for longer than 90 days.
	(c)  If notice of a hearing on the final rule is given not 
later than the 90th day after the date the rule is adopted, the rule 
is effective for an additional 90 days.
	(d)  A rule adopted under this section must be adopted at a 
meeting held as provided by Chapter 551, Government Code.
	(e)  This section does not apply to the Edwards Aquifer 
Authority.    
	SECTION 5.  Sections 36.1071(a), (b), and (d)-(h), 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 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; [and]                    
		(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)  A [After January 5, 2002, a] district management plan, 
or any amendments to 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
[consideration] in their planning process.
	(d)  The commission shall provide technical assistance to a 
district during its initial operational phase.  If requested by a 
district, the Texas Water Development Board shall train the 
district on basic data collection methodology and provide technical 
assistance to districts.
	(e)  In the management plan described under Subsection (a), 
the district shall:
		(1)  identify the performance standards and management 
objectives under which the district will operate to achieve the 
management goals identified under Subsection (a);
		(2)  specify, in as much detail as possible, the 
actions, procedures, performance, and avoidance that are or may be 
necessary to effect the plan, including specifications and proposed 
rules;
		(3)  include estimates of the following:                                      
			(A)  managed available [the existing total usable 
amount of] groundwater in the district based on the desired future 
condition established under Section 36.108;
			(B)  the amount of groundwater being used within 
the district on an annual basis;
			(C)  the annual amount of recharge from 
precipitation, if any, to the groundwater resources within the 
district [and how natural or artificial recharge may be increased]; 
[and]
			(D)  for each aquifer, the annual volume of water 
that discharges from the aquifer to springs and any surface water 
bodies, including lakes, streams, and rivers;
			(E)  the annual volume of flow into and out of the 
district within each aquifer and between aquifers in the district, 
if a groundwater availability model is available;
			(F)  the projected surface water supply in the 
district according to the most recently adopted state water plan; 
and
			(G)  the projected total demand for water in the 
district according to the most recently adopted state water plan
[projected water supply and demand for water within the district]; 
and
		(4)  consider the [address] water supply needs and 
water management strategies included in [a manner that is not in 
conflict with] the adopted state [appropriate approved regional] 
water plan [if a regional water plan has been approved under Section 
16.053].
	(f)  The district shall adopt rules necessary to implement 
the management plan.  Prior to the development of the management 
plan and its approval under Section 36.1072, the district may not 
adopt rules other than rules pertaining to the registration and 
interim permitting of new and existing wells and rules governing 
spacing and procedure before the district's board; however, the 
district may not adopt any rules limiting the production of wells, 
except rules requiring that groundwater produced from a well be put 
to a nonwasteful, beneficial use.  The district may accept 
applications for permits under Section 36.113, provided the 
district does not act on any such application until the district's 
management plan is approved as provided in Section 36.1072.
	(g)  The district [board] shall adopt amendments to the 
management plan as necessary.  Amendments to the management plan 
shall be adopted after notice and hearing and shall otherwise 
comply with the requirements of this section.
	(h)  In developing its management plan, the district shall 
use the groundwater availability modeling information provided by 
the executive administrator together [in conjunction] with any 
available site-specific information that has been provided by the 
district to the executive administrator for review and comment 
before being used in the plan [and acceptable to the executive 
administrator].
	SECTION 6.  Section 36.1072, Water Code, is amended to read 
as follows:      
	Sec. 36.1072.  TEXAS WATER DEVELOPMENT BOARD REVIEW AND 
APPROVAL [CERTIFICATION] OF MANAGEMENT PLAN.  (a)  A district 
shall, not later than three [two] years after the creation of the 
district or, if the district required confirmation, 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 [certification].
	(b)  Within 60 days of receipt of a 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 [certify] 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 [that] conditions 
justify waiver of the requirements under Section 36.1071(e)(4).
	(c)  Once the executive administrator has approved a 
[determination that a] management plan [is administratively 
complete has been made]:
		(1)  the executive administrator may not revoke but may 
require revisions to the approved groundwater conservation 
district management plan as provided by Subsection (g)
[determination that a management plan is administratively 
complete]; 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[; and
		[(3)]  a request for additional information does not 
render the management plan unapproved [incomplete].
	(d)  A management plan takes effect on approval 
[certification] by the executive administrator or, if appealed, on 
approval [certification] by the Texas Water Development Board.
	(e)  The district [board] may review the plan annually and 
must review and readopt the plan with or without revisions at least 
once every five years.  The district shall provide the readopted 
plan to the executive administrator not later than the 60th day 
after the date on which the plan was readopted.  Approval of the 
preceding management plan remains in effect until:
		(1)  the district fails to timely readopt a management 
plan;         
		(2)  the district fails to timely submit the district's 
readopted management plan to the executive administrator; or
		(3)  the executive administrator determines that the 
readopted management plan does not meet the requirements for 
approval, and the district has exhausted all appeals to the Texas 
Water Development Board or appropriate court.
	(f)  If the executive administrator does not approve
[certify] the 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 [certified], 
the district may submit a revised management plan for review and 
approval [certification].  The executive administrator's decision 
may be appealed to the Texas Water Development Board.  If the Texas 
Water Development Board decides not to approve the 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 [The] 
decision of the Texas Water Development Board not [on whether] to 
approve [certify] the management plan may [not] 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 later of the 
expiration of the 180-day period, [or] the date the Texas Water 
Development Board has taken final action withholding approval
[certification] 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 [certified groundwater conservation district] 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 [remains], 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 [certified] groundwater 
conservation district management plan, the development board shall 
[suspend the certification of the plan and] provide information to 
the district.  The district shall prepare any revisions to the plan 
based on the information provided [specified] 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 plan, and submit the revised plan to the 
development board for approval [certification].  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 7.  Section 36.1073, Water Code, is amended to read 
as follows:      
	Sec. 36.1073.  AMENDMENT TO MANAGEMENT PLAN.  Any amendment 
to 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 [certify] any amendment which substantially affects the 
management plan in accordance with the procedures established under 
Section 36.1072.
	SECTION 8.  Section 36.108, Water Code, is amended to read as 
follows:       
	Sec. 36.108.  JOINT PLANNING IN MANAGEMENT AREA.  (a)  In 
this section, "development board" means the Texas Water Development 
Board.
	(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 [certification] of the plan as required by Section 
36.1072, each district shall forward a copy of 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 [(b)  The board of directors of] each district located 
in whole or in part in the management area shall meet at least 
annually to conduct [may, by resolution, call for] 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 [boards] 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 management plan for conserving and protecting groundwater and 
preventing waste, and the effectiveness of these measures in the 
management area generally; [and]
		(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.
	(d)  Not later than September 1, 2010, and every five years 
thereafter, the districts shall consider groundwater availability 
models and other data or information for the management area and 
shall establish desired future conditions for the relevant aquifers 
within the management area.  In establishing the desired future 
conditions of the aquifers under this section, the districts shall 
consider uses or conditions of an aquifer within the management 
area that differ substantially from one geographic area to another. 
The districts may establish different desired future conditions 
for:
		(1)  each aquifer, subdivision of an aquifer, or 
geologic strata located in whole or in part within the boundaries of 
the management area; or
		(2)  each geographic area overlying an aquifer in whole 
or in part or subdivision of an aquifer within the boundaries of the 
management area.
	(d-1)  The desired future conditions established under 
Subsection (d) must be adopted by a two-thirds vote of the district 
representatives present at a meeting:
		(1)  at which at least two-thirds of the districts 
located in whole or in part in the management area have a voting 
representative in attendance; and
		(2)  for which all districts located in whole or in part 
in the management area provide public notice in accordance with 
Chapter 551, Government Code.
	(d-2)  Each district in the management area shall ensure that 
its management plan contains goals and objectives consistent with 
achieving the desired future conditions of the relevant aquifers as 
adopted during the joint planning process.
	(e)  A [(c)  If a] joint meeting under this section must be
[of the boards of directors is called, the meeting must be] held in 
accordance with Chapter 551, Government Code.  Each district shall 
comply with Chapter 552, Government Code.  Notice of the meeting 
shall be given in accordance with the requirements for notice of 
district board of directors meetings under that Act.
	(f) [(d)]  A district or person with a legally defined 
interest in the groundwater within [in] the management area may 
file [with good cause] a petition with the commission requesting an 
inquiry if a [the petitioner district adopted a resolution calling 
for joint planning and the other] district or districts refused to 
join in the planning process or the process failed to result in 
adequate planning, including the establishment of reasonable 
future desired conditions of the aquifers, and the petition 
provides evidence that:
		(1)  a [another] district in the groundwater management 
area has failed to adopt rules;
		(2)  the rules adopted by a district are not designed to 
achieve the desired future condition of the groundwater resources 
in the groundwater management area established during the joint 
planning process;
		(3)  the groundwater in the management area is not 
adequately protected by the rules adopted by a [another] district; 
or
		(4) [(3)]  the groundwater in the groundwater
management area is not adequately protected due to the failure of a
[another] district to enforce substantial compliance with its 
rules.
	(g) [(e)]  Not later than the 90th day after the date the 
petition is filed, the commission shall review the petition and 
either:
		(1)  dismiss the petition if the commission [it if 
it] finds that the evidence is not adequate to show that any of the 
conditions alleged in the petition exist; or
		(2)  select a review panel as provided in Subsection 
(h) [(f)].
	(h) [(f)]  If the petition is not dismissed under Subsection 
(g) [(e)], the commission shall appoint a review panel consisting 
of a chairman and four other members.  A director or general manager 
of a district located outside the groundwater management area that 
is the subject of the petition may be appointed to the review panel.  
The commission may not appoint more than two members of the review 
panel from any one district.  The commission also shall appoint a 
disinterested person to serve as a nonvoting recording secretary 
for the review panel.  The recording secretary may be an employee of 
the commission.  The recording secretary shall record and document 
the proceedings of the panel.
	(i) [(g)]  Not later than the 120th day after appointment, 
the review panel shall review the petition and any evidence 
relevant to the petition and, in a public meeting, consider and 
adopt a report to be submitted to the commission.  The commission 
may direct the review panel to conduct public hearings at a location 
in the groundwater management area to take evidence on the 
petition.  The review panel may attempt to negotiate a settlement or 
resolve the dispute by any lawful means.
	(j) [(h)]  In its report, the review panel shall include:
		(1)  a summary of all evidence taken in any hearing on 
the petition;        
		(2)  a list of findings and recommended actions 
appropriate for the commission to take and the reasons it finds 
those actions appropriate; and
		(3)  any other information the panel considers 
appropriate.                 
	(k) [(i)]  The review panel shall submit its report to the 
commission.  The commission may take action under Section 36.3011.
	(l)  A person with a legally defined interest in the 
groundwater in the groundwater management area, a district in or 
adjacent to the groundwater management area, or a regional water 
planning group for a region in the groundwater management area may 
file a petition with the development board appealing the approval 
of the desired future 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 groundwater 
management area.
	(m)  The development board shall review the petition and any 
evidence relevant to the petition.  The development board shall 
hold at least one hearing at a central location in the management 
area 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.  If the development board finds that the conditions 
require revision, the development board shall submit a report to 
the districts that includes a list of findings and recommended 
revisions to the desired future conditions of the groundwater 
resources.
	(n)  The districts shall prepare a revised plan in accordance 
with development board recommendations and hold, after notice, at 
least one public hearing at a central location in the groundwater 
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.
	(o)  The districts shall submit the conditions established 
under this section to the executive administrator.  The executive 
administrator shall provide each district and regional water 
planning group located wholly or partly in the management area with 
the managed available groundwater in the management area based upon 
the desired future condition of the groundwater resources 
established under this section.
	(p) [(j)]  Districts located within the same groundwater
management areas or in adjacent management areas may contract to 
jointly conduct studies or research, or to construct projects, 
under terms and conditions that the districts consider beneficial.  
These joint efforts may include studies of groundwater availability 
and quality, aquifer modeling, and the interaction of groundwater 
and surface water; educational programs; the purchase and sharing 
of equipment; and the implementation of projects to make 
groundwater available, including aquifer recharge, brush control, 
weather modification, desalination, regionalization, and treatment 
or conveyance facilities.  The districts may contract under their 
existing authorizations including those of Chapter 791, Government 
Code, if their contracting authority is not limited by Sections 
791.011(c)(2) and (d)(3) and Section 791.014, Government Code.
	SECTION 9.  Section 36.109, Water Code, is amended to read as 
follows:       
	Sec. 36.109.  COLLECTION OF INFORMATION.  A district may 
collect any information the board deems necessary, including 
information regarding the use of groundwater, water conservation, 
and the practicability of recharging a groundwater reservoir.  At 
the request of the executive administrator, the district shall 
provide any data collected by the district in a format acceptable to 
the executive administrator.
	SECTION 10.  Sections 36.113 and 36.114, Water Code, are 
amended to read as follows:
	Sec. 36.113.  PERMITS FOR WELLS; PERMIT AMENDMENTS.  (a)  
Except as provided by Section 36.117, a [A] district shall require a 
permit [permits] for the drilling, equipping, operating, or 
completing of wells or for substantially altering the size of wells 
or well pumps.  A district may require that a change in the 
withdrawal or use of groundwater during the term of a permit issued 
by the district may not be made unless the district has first 
approved a permit amendment authorizing the change.
	(a-1)  A district may not require a permit or a permit 
amendment for maintenance or repair of a well if the maintenance or 
repair does not increase the production capabilities of the well to 
more than its authorized or permitted production rate.
	(b)  A district shall require that an application for a 
permit or a permit amendment be in writing and sworn to.
	(c)  A district may require that the following be included in 
the permit or permit amendment application:
		(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.                                              
	(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 certified water management plan;
		(5)  the applicant has agreed to avoid waste and 
achieve water conservation; and
		(6)  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.
	(e)  The district may impose more restrictive permit 
conditions on new permit applications and permit amendment 
applications to increase [increased] use by historic users if the 
limitations:
		(1)  apply to all subsequent new permit applications 
and permit amendment applications to increase [increased] use by 
historic users, regardless of type or location of use;
		(2)  bear a reasonable relationship to the existing 
district management plan; and
		(3)  are reasonably necessary to protect existing use.                        
	(f)  Permits and permit amendments may be issued subject to 
the rules promulgated by the district and subject to terms and 
provisions with reference to the drilling, equipping, completion, 
[or] alteration, or operation of, or production of groundwater 
from, [of] wells or pumps that may be necessary to prevent waste and 
achieve water conservation, minimize as far as practicable the 
drawdown of the water table or the reduction of artesian pressure, 
lessen interference between wells, or control and prevent 
subsidence.
	[(g)  A district may require that changes in the withdrawal 
and use of groundwater under a permit not be made without the prior 
approval of a permit amendment issued by the district.]
	Sec. 36.114.  PERMIT; PERMIT AMENDMENT; APPLICATION AND 
HEARING.  (a)  The district by rule shall determine each activity 
regulated by the district for which a permit or permit amendment is 
required.
	(b)  For each activity for which the district determines a 
permit or permit amendment is required under Subsection (a), the 
district by rule shall determine whether a hearing on the permit or 
permit amendment application is required.
	(c)  For all applications for which a hearing is not required 
under Subsection (b), the board shall act on the application at a 
meeting, as defined by Section 551.001, Government Code, unless the 
board by rule has delegated to the general manager the authority to 
act on the application.
	(d)  The district shall promptly consider and act on each 
administratively complete application for a permit or permit 
amendment as provided by Subsection (c) or Subchapter M.
	(e)  If, within 60 [30] days after the date an [the] 
administratively complete application is submitted, the [an] 
application has not been acted on or set for a hearing on a specific 
date, the applicant may petition the district court of the county 
where the land is located for a writ of mandamus to compel the 
district to act on the application or set a date for a hearing on the 
application, as appropriate.
	(f)  For applications requiring a hearing, the initial [A] 
hearing shall be held within 35 days after the setting of the date,
and the district shall act on the application within 60 [35] days 
after the date [of] the final hearing on the application is 
concluded.
	(g)  The district may by rule set a time when an application 
will expire if the information requested in the application is not 
provided to the district.
	(h)  An administratively complete application requires 
information set forth in accordance with Sections 36.113 and 
36.1131.
	SECTION 11.  Subchapter D, Chapter 36, Water Code, is 
amended by adding Section 36.1132 to read as follows:
	Sec. 36.1132.  PERMITS BASED ON MANAGED AVAILABLE 
GROUNDWATER.  A district, to the extent possible, shall issue 
permits up to the point that the total volume of groundwater 
permitted equals the managed available groundwater, if 
administratively complete permit applications are submitted to the 
district.
	SECTION 12.  Sections 36.116(a) and (b), Water Code, are 
amended as follows: 
	(a)  In order to minimize as far as practicable the drawdown 
of the water table or the reduction of artesian pressure, to control 
subsidence, to prevent interference between wells, to prevent 
degradation of water quality, or to prevent waste, a district by 
rule may regulate:
		(1)  the spacing of water wells by:                                           
			(A)  requiring all water wells to be spaced a  
certain distance from property lines or adjoining wells;
			(B)  requiring wells with a certain production 
capacity, pump size, or other characteristic related to the 
construction or operation of and production from a well to be spaced 
a certain distance from property lines or adjoining wells; or
			(C)  imposing spacing requirements adopted by the 
board; and               
		(2)  the production of groundwater by:                                        
			(A)  setting production limits on wells;                                     
			(B)  limiting the amount of water produced based 
on acreage or tract size; 
			(C)  limiting the amount of water that may be 
produced from a defined number of acres assigned to an authorized 
well site;
			(D)  limiting the maximum amount of water that may 
be produced on the basis of acre-feet per acre or gallons per minute 
per well site per acre; [or]
			(E)  managed depletion; or                                            
			(F)  any combination of the methods listed above 
in Paragraphs (A) through (E) [(D)].
	(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 13.  Section 36.3011, Water Code, is amended to read 
as follows:     
	Sec. 36.3011.  FAILURE OF [A] DISTRICT TO CONDUCT JOINT 
PLANNING.  [(a)  If the board of a district within a common 
management area fails to forward a copy of its new or revised 
certified management plan under Section 36.108, the commission 
shall take appropriate action under Section 36.303.
	[(b)]  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 [If] the commission finds that:
		(1)  a district [in the joint planning area] has failed 
to submit its 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[, the commission may take any action it considers 
necessary in accordance with Section 36.303].
	SECTION 14.  Section 36.302(d), Water Code, is amended to 
read as follows:   
	(d)  The state auditor may perform the review under 
Subsection (a) following the first anniversary of the initial 
approval [certification] of the plan [by the Texas Water 
Development Board] under Section 36.1072 and at least as often as 
once every seven years after that date, subject to a risk assessment 
and to the legislative audit committee's approval of including the 
review in the audit plan under Section 321.013, Government Code.
	SECTION 15.  Section 36.304(a), Water Code, is amended to 
read as follows:   
	(a)  The commission may dissolve a district that[:            
		[(1)  is not operational, as determined under Section 
36.302; and
		[(2)]  has no outstanding bonded indebtedness.               
	SECTION 16.  Subchapter L, Chapter 36, Water Code, is 
amended by adding Section 36.3705 to read as follows:
	Sec. 36.3705.  DEFINITION.  In this subchapter, "applicant" 
means a newly confirmed district applying for a loan from the loan 
fund.
	SECTION 17.  Chapter 36, Water Code, is amended by adding 
Subchapter M to read as follows:
SUBCHAPTER M.  PERMIT AND PERMIT AMENDMENT APPLICATIONS;
NOTICE AND HEARING PROCESS
	Sec. 36.401.  DEFINITION.  In this subchapter, "applicant" 
means a person who is applying for a permit or a permit amendment.
	Sec. 36.402.  APPLICABILITY.  Except as provided by Section 
36.416, this subchapter applies to the notice and hearing process 
used by a district for permit and permit amendment applications.
	Sec. 36.403.  SCHEDULING OF HEARING.  (a)  The general 
manager or board may schedule a hearing on permit or permit 
amendment applications received by the district as necessary, as 
provided by Section 36.114.
	(b)  The general manager or board may schedule more than one 
application for consideration at a hearing.
	(c)  A hearing must be held at the district office or regular 
meeting location of the board unless the board provides for 
hearings to be held at a different location.
	(d)  A hearing may be held in conjunction with a regularly 
scheduled board meeting.
	Sec. 36.404.  NOTICE.  (a)  If the general manager or board 
schedules a hearing on an application for a permit or permit 
amendment, the general manager or board shall give notice of the 
hearing as provided by this section.
	(b)  The notice must include:                                           
		(1)  the name of the applicant;                                        
		(2)  the address or approximate location of the well or 
proposed well;
		(3)  a brief explanation of the proposed permit or 
permit amendment, including any requested amount of groundwater, 
the purpose of the proposed use, and any change in use;
		(4)  the time, date, and location of the hearing; and                  
		(5)  any other information the general manager or board 
considers relevant and appropriate.
	(c)  Not later than the 10th day before the date of a hearing, 
the general manager or board shall:
		(1)  post notice in a place readily accessible to the 
public at the district office;
		(2)  provide notice to the county clerk of each county 
in the district; and
		(3)  provide notice by:                                                
			(A)  regular mail to the applicant;                                   
			(B)  regular mail, facsimile, or electronic mail 
to any person who has requested notice under Subsection (d); and
			(C)  regular mail to any other person entitled to 
receive notice under the rules of the district.
	(d)  A person may request notice from the district of a 
hearing on a permit or a permit amendment application.  The request 
must be in writing and is effective for the remainder of the 
calendar year in which the request is received by the district.  To 
receive notice of a hearing in a later year, a person must submit a 
new request.  An affidavit of an officer or employee of the district 
establishing attempted service by first class mail, facsimile, or 
e-mail to the person in accordance with the information provided by 
the person is proof that notice was provided by the district.
	(e)  Failure to provide notice under Subsection (c)(3)(B) 
does not invalidate an action taken by the district at the hearing.
	Sec. 36.405.  HEARING REGISTRATION.  The district may 
require each person who participates in a hearing to submit a 
hearing registration form stating:
		(1)  the person's name;                                                
		(2)  the person's address; and                                         
		(3)  whom the person represents, if the person is not 
there in the person's individual capacity.
	Sec. 36.406.  HEARING PROCEDURES.  (a)  A hearing must be 
conducted by:
		(1)  a quorum of the board; or                                         
		(2)  an individual to whom the board has delegated in 
writing the responsibility to preside as a hearings examiner over 
the hearing or matters related to the hearing.
	(b)  Except as provided by Subsection (c), the board 
president or the hearings examiner shall serve as the presiding 
officer at the hearing.
	(c)  If the hearing is conducted by a quorum of the board and 
the board president is not present, the directors conducting the 
hearing may select a director to serve as the presiding officer.
	(d)  The presiding officer may:                                         
		(1)  convene the hearing at the time and place 
specified in the notice;
		(2)  set any necessary additional hearing dates;                       
		(3)  designate the parties regarding a contested 
application;        
		(4)  establish the order for presentation of evidence;                 
		(5)  administer oaths to all persons presenting 
testimony;           
		(6)  examine persons presenting testimony;                             
		(7)  ensure that information and testimony are 
introduced as conveniently and expeditiously as possible without 
prejudicing the rights of any party;
		(8)  prescribe reasonable time limits for testimony and 
the presentation of evidence; and
		(9)  exercise the procedural rules adopted under 
Section 36.415.     
	(e)  Except as provided by a rule adopted under Section 
36.415, a district may allow any person, including the general 
manager or a district employee, to provide comments at a hearing on 
an uncontested application.
	(f)  The presiding officer may allow testimony to be 
submitted in writing and may require that written testimony be 
sworn to.  On the motion of a party to the hearing, the presiding 
officer may exclude written testimony if the person who submits the 
testimony is not available for cross-examination by phone, a 
deposition before the hearing, or other reasonable means.
	(g)  If the board has not acted on the application, the 
presiding officer may allow a person who testifies at the hearing to 
supplement the testimony given at the hearing by filing additional 
written materials with the presiding officer not later than the 
10th day after the date of the hearing.  A person who files 
additional written material with the presiding officer under this 
subsection must also provide the material, not later than the 10th 
day after the date of the hearing, to any person who provided 
comments on an uncontested application or any party to a contested 
hearing.  A person who receives additional written material under 
this subsection may file a response to the material with the 
presiding officer not later than the 10th day after the date the 
material was received.
	(h)  The district by rule adopted under Section 36.417 may 
authorize the presiding officer, at the presiding officer's 
discretion, to issue an order at any time before board action under 
Section 36.411 that:
		(1)  refers parties to a contested hearing to an 
alternative dispute resolution procedure on any matter at issue in 
the hearing;
		(2)  determines how the costs of the procedure shall be 
apportioned among the parties; and
		(3)  appoints an impartial third party as provided by 
Section 2009.053, Government Code, to facilitate that procedure.
	Sec. 36.407.  EVIDENCE.  (a)  The presiding officer shall 
admit evidence that is relevant to an issue at the hearing.
	(b)  The presiding officer may exclude evidence that is 
irrelevant, immaterial, or unduly repetitious.
	Sec. 36.408.  RECORDING.  (a)  Except as provided by 
Subsection (b), the presiding officer shall prepare and keep a 
record of each hearing in the form of an audio or video recording or 
a court reporter transcription.  On the request of a party to a 
contested hearing, the presiding officer shall have the hearing 
transcribed by a court reporter.  The presiding officer may assess 
any court reporter transcription costs against the party that 
requested the transcription or among the parties to the hearing.  
Except as provided by this subsection, the presiding officer may 
exclude a party from further participation in a hearing for failure 
to pay in a timely manner costs assessed against that party under 
this subsection.  The presiding officer may not exclude a party from 
further participation in a hearing as provided by this subsection 
if the parties have agreed that the costs assessed against that 
party will be paid by another party.
	(b)  If a hearing is uncontested, the presiding officer may 
substitute minutes or the report required under Section 36.410 for 
a method of recording the hearing provided by Subsection (a).
	Sec. 36.409.  CONTINUANCE.  The presiding officer may 
continue a hearing from time to time and from place to place without 
providing notice under Section 36.404.  If the presiding officer 
continues a hearing without announcing at the hearing the time, 
date, and location of the continued hearing, the presiding officer 
must provide notice of the continued hearing by regular mail to the 
parties.
	Sec. 36.410.  REPORT.  (a)  Except as provided by Subsection 
(e), the presiding officer shall submit a report to the board not 
later than the 30th day after the date a hearing is concluded.
	(b)  The report must include:                                           
		(1)  a summary of the subject matter of the hearing;                   
		(2)  a summary of the evidence or public comments 
received; and      
		(3)  the presiding officer's recommendations for board 
action on the subject matter of the hearing.
	(c)  The presiding officer or general manager shall provide a 
copy of the report to:
		(1)  the applicant; and                                                
		(2)  each person who provided comments or each 
designated party.     
	(d)  A person who receives a copy of the report under 
Subsection (c) may submit to the board written exceptions to the 
report.
	(e)  If the hearing was conducted by a quorum of the board and 
if the presiding officer prepared a record of the hearing as 
provided by Section 36.408(a), the presiding officer shall 
determine whether to prepare and submit a report to the board under 
this section.
	Sec. 36.411.  BOARD ACTION.  The board shall act on a permit 
or permit amendment application not later than the 60th day after 
the date the final hearing on the application is concluded.
	Sec. 36.412.  REQUEST FOR REHEARING OR FINDINGS AND 
CONCLUSIONS.  (a)  An applicant in a contested or uncontested 
hearing on an application or a party to a contested hearing may 
administratively appeal a decision of the board on a permit or 
permit amendment application by requesting written findings and 
conclusions or a rehearing before the board not later than the 20th 
day after the date of the board's decision.
	(b)  On receipt of a timely written request, the board shall 
make written findings and conclusions regarding a decision of the 
board on a permit or permit amendment application.  The board shall 
provide certified copies of the findings and conclusions to the 
person who requested them, and to each person who provided comments 
or each designated party, not later than the 35th day after the date 
the board receives the request.  A person who receives a certified 
copy of the findings and conclusions from the board may request a 
rehearing before the board not later than the 20th day after the 
date the board issues the findings and conclusions.
	(c)  A request for rehearing must be filed in the district 
office and must state the grounds for the request.  If the original 
hearing was a contested hearing, the person requesting a rehearing 
must provide copies of the request to all parties to the hearing.
	(d)  If the board grants a request for rehearing, the board 
shall schedule the rehearing not later than the 45th day after the 
date the request is granted.
	(e)  The failure of the board to grant or deny a request for 
rehearing before the 91st day after the date the request is 
submitted is a denial of the request.
	Sec. 36.413.  DECISION; WHEN FINAL.  (a)  A decision by the 
board on a permit or permit amendment application is final:
		(1)  if a request for rehearing is not filed on time, on 
the expiration of the period for filing a request for rehearing; or
		(2)  if a request for rehearing is filed on time, on the 
date:       
			(A)  the board denies the request for rehearing; 
or                 
			(B)  the board renders a written decision after 
rehearing.          
	(b)  Except as provided by Subsection (c), an applicant or a 
party to a contested hearing may file a suit against the district 
under Section 36.251 to appeal a decision on a permit or permit 
amendment application not later than the 60th day after the date on 
which the decision becomes final.
	(c)  An applicant or a party to a contested hearing may not 
file suit against the district under Section 36.251 if a request for 
rehearing was not filed on time.
	Sec. 36.414.  CONSOLIDATED HEARING ON APPLICATIONS.  (a)  
Except as provided by Subsection (b), a district shall process 
applications from a single applicant under  consolidated notice and 
hearing procedures on written request by the applicant if the 
district requires a separate permit or permit amendment application 
for:
		(1)  drilling, equipping, operating, or completing a 
well or substantially altering the size of a well or well pump under 
Section 36.113;
		(2)  the spacing of water wells or the production of 
groundwater under Section 36.116; or
		(3)  transferring groundwater out of a district under 
Section 36.122.
	(b)  A district is not required to use consolidated notice 
and hearing procedures to process separate permit or permit 
amendment applications from a single applicant if the board cannot 
adequately evaluate one application until it has acted on another 
application.
	Sec. 36.415.  RULES; ADDITIONAL PROCEDURES.  (a)  A district 
by rule shall adopt procedural rules to implement this subchapter 
and may adopt notice and hearing procedures in addition to those 
provided by this subchapter.
	(b)  In adopting the rules, a district shall:                           
		(1)  define under what circumstances an application is 
considered contested; and
		(2)  limit participation in a hearing on a contested 
application to persons who have a personal justiciable interest 
related to a legal right, duty, privilege, power, or economic 
interest that is within a district's regulatory authority and 
affected by a permit or permit amendment application, not including 
persons who have an interest common to members of the public.
	Sec. 36.416.  HEARINGS CONDUCTED BY STATE OFFICE OF 
ADMINISTRATIVE HEARINGS.  If a district contracts with the State 
Office of Administrative Hearings to conduct a hearing, the hearing 
shall be conducted as provided by Subchapters C, D, and F, Chapter 
2001, Government Code.
	Sec. 36.417.  RULES; ALTERNATIVE DISPUTE RESOLUTION.  A 
district by rule may develop and use alternative dispute resolution 
procedures in the manner provided for governmental bodies under 
Chapter 2009, Government Code.
	Sec. 36.418.  APPLICABILITY OF ADMINISTRATIVE PROCEDURE 
ACT.  (a)  A district may adopt rules establishing procedures for 
contested hearings consistent with Subchapters C, D, and F, Chapter 
2001, Government Code, including the authority to issue a subpoena, 
require a deposition, or order other discovery.
	(b)  Except as provided by this section and Section 36.416, 
Chapter 2001, Government Code, does not apply to a hearing under 
this subchapter.
	Sec. 36.419.  EDWARDS AQUIFER AUTHORITY.  (a)  Except as 
provided by Subsection (b), this subchapter does not apply to the 
Edwards Aquifer Authority.
	(b)  Sections 36.412 and 36.413 apply to the Edwards Aquifer 
Authority.
	SECTION 18.  Sections 9.017 and 36.001(17), Water Code, are 
repealed.        
	SECTION 19.  The change in law made by this Act applies only 
to a permit or permit amendment application determined to be 
administratively complete or a rulemaking hearing for which notice 
is given by a groundwater conservation district on or after the 
effective date of this Act.  A permit or permit amendment 
application determined to be administratively complete or a 
rulemaking hearing for which notice was given by a groundwater 
conservation district before the effective date of this Act is 
governed by the law in effect at the time the application was 
determined to be administratively complete or the notice was given, 
and the former law is continued in effect for that purpose.
	SECTION 20.  This Act takes effect September 1, 2005.                          
______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      
	I certify that H.B. No. 1763 was passed by the House on May 
12, 2005, by a non-record vote; and that the House concurred in 
Senate amendments to H.B. No. 1763 on May 24, 2005, by a non-record 
vote; and that the House adopted H.C.R. No. 236 authorizing certain 
corrections in H.B. No. 1763 on May 30, 2005, by a non-record vote.
                                                  ______________________________
                                                     Chief Clerk of the House   
	
I certify that H.B. No. 1763 was passed by the Senate, with 
amendments, on May 23, 2005, by the following vote:  Yeas 31, Nays 
0; and that the Senate adopted H.C.R. No. 236 authorizing certain 
corrections in H.B. No. 1763 on May 30, 2005, by a viva-voce vote.
                                                  ______________________________
                                                      Secretary of the Senate   
APPROVED: __________________                                                
 
                Date                                                         
 
         __________________                                              
 
              Governor