85R961 AAF-F     By: Perry S.B. No. 1392       A BILL TO BE ENTITLED   AN ACT   relating to groundwater conservation districts.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 36.001, Water Code, is amended by   amending Subdivisions (25) and (30) and adding Subdivision (32) to   read as follows:                (25)  "Modeled available groundwater" means the total    amount of water within a common reservoir that the executive   administrator determines may be produced on an average annual basis   to achieve a desired future condition established under Section   36.108.                (30)  "Desired future condition" means a quantitative   description, adopted in accordance with Section 36.108, of the   desired condition of a common reservoir [the groundwater resources]   in a management area at one or more specified future times.                (32)  "Common reservoir" means an aquifer or   subdivision of a groundwater reservoir delineated in conjunction   with a management area under Section 36.108.          SECTION 2.  Section 36.0015(b), Water Code, is amended to   read as follows:          (b)  In order to provide for the conservation, preservation,   protection, recharging, and prevention of waste of groundwater, and   of groundwater reservoirs or their subdivisions, and to control   subsidence caused by withdrawal of water from those groundwater   reservoirs or their subdivisions, consistent with the objectives of   Section 59, Article XVI, Texas Constitution, groundwater   conservation districts may be created as provided by this chapter.   Groundwater conservation districts created as provided by this   chapter are the state's preferred method of groundwater management   in order to:                (1)  protect property rights;                (2)  [,] balance the conservation and provide for the   orderly development of groundwater to meet the needs of this state;                (3)  [, and] use the best available science;                (4)  treat each groundwater owner overlying a common   reservoir fairly; and                (5)  act jointly with other groundwater conservation   districts [in the conservation and development of groundwater]   through common rules developed, adopted, and promulgated by those   districts [a district] in accordance with the provisions of this   chapter.          SECTION 3.  Sections 36.002(a), (b), and (d), Water Code,   are amended to read as follows:          (a)  A [The legislature recognizes that a] landowner owns the   groundwater below the surface of the landowner's land as real   property.          (b)  The groundwater ownership and rights described by this   section entitle the landowner, including a landowner's lessees,   heirs, or assigns, to:                (1)  drill for and produce the groundwater below the   surface of real property, subject to Subsection (d), without   causing waste or malicious drainage of other property or   negligently causing subsidence; [and]                (2)  the right to use produced groundwater for a   beneficial use without causing waste; and                (3)  [have] any other right recognized under common   law.          (d)  This section does not:                (1)  prohibit a district from limiting or prohibiting   the drilling of a well by a landowner for failure or inability to   comply with minimum well spacing or tract size requirements or with   production limits based on the amount of land owned by the landowner   adopted by the district;                (2)  affect the ability of a district to regulate   groundwater production as authorized under Section 36.113, 36.116,   or 36.122 or otherwise under this chapter or a special law governing   a district; or                (3)  require that a rule adopted by a district allocate   to each landowner a proportionate share of available groundwater   for production from the aquifer based on the number of acres owned   by the landowner.          SECTION 4.  Section 36.020(a), Water Code, is amended to   read as follows:          (a)  At an election to create a district, the temporary   directors may include a proposition for the issuance of bonds or   notes, the levy of taxes to retire all or part of the bonds or notes,   and the levy of a maintenance tax. The maintenance tax rate may not   exceed 37.5 [50] cents on each $100 of assessed valuation.          SECTION 5.  Section 36.051, Water Code, is amended by adding   Subsection (b-1) to read as follows:          (b-1)  A representative or employee of the governing body of   a river authority is ineligible for appointment or election as a   director.          SECTION 6.  Section 36.062, Water Code, is amended to read as   follows:          Sec. 36.062.  OFFICES AND MEETING PLACES.  (a)  The board   shall designate from time to time and maintain one or more regular   offices for conducting the business of the district and maintaining   the records of the district. Such offices must be reasonably   accessible to the public and may be located either inside or outside   the district's boundaries as determined in the discretion of the   board.          (b)  The board shall designate one or more places reasonably   accessible to members of the public who reside in the district   inside or outside the district for conducting the meetings of the   board.          SECTION 7.  Sections 36.101(a) and (c), Water Code, are   amended to read as follows:          (a)  A district shall adopt [may make] and enforce rules,   including rules limiting groundwater production based on tract size   or the spacing of wells, to provide for conserving, preserving,   protecting, and recharging of the groundwater or of a groundwater   reservoir or its subdivisions in order to control subsidence,   prevent degradation of water quality, or prevent waste of   groundwater and to carry out the powers and duties provided by this   chapter.  In adopting a rule under this chapter, a district shall:                (1)  [consider all groundwater uses and needs;                [(2)]  develop rules that are fair and impartial;                (2) [(3)]  consider the groundwater ownership and   rights described by Section 36.002;                (3) [(4)     consider the public interest in   conservation, preservation, protection, recharging, and prevention   of waste of groundwater, and of groundwater reservoirs or their   subdivisions, and in controlling subsidence caused by withdrawal of   groundwater from those groundwater reservoirs or their   subdivisions, consistent with the objectives of Section 59, Article   XVI, Texas Constitution;                [(5)]  consider the goals developed as part of the   district's management plan under Section 36.1071; and                (4) [(6)]  not discriminate based on:                      (A)  the prior use of groundwater; or                      (B)  whether the proposed groundwater use is   inside or outside of the district [between land that is irrigated   for production and land that was irrigated for production and   enrolled or participating in a federal conservation program].          (c)  The board shall compile its rules and make them   available for use and inspection at each of the district's offices   [principal office].          SECTION 8.  Sections 36.1071(e), (f), and (h), Water Code,   are amended to read as follows:          (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)  for each common reservoir designated under Section   36.108, include estimates of the following:                      (A)  modeled available groundwater in the common   reservoir [district] based on the desired future condition   established under Section 36.108;                      (B)  the amount of groundwater from the common   reservoir being used [within the district] on an annual basis;                      (C)  the annual amount of recharge from   precipitation, if any, to the groundwater resources of the common   reservoir [within the district];                      (D)  [for each aquifer,] the estimated annual   volume of water that discharges from:                            (i)  the common reservoir [aquifer] to   springs and any surface water bodies, including lakes, streams, and   rivers; and                            (ii)  evaporation or transpiration; and                      (E)  the annual volume of lateral and vertical    flow into and out of each common reservoir and any adjoining common   reservoir [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;]   and                (4)  identify each common reservoir jointly managed by   the district under Section 36.108 [consider the water supply needs   and water management strategies included in the adopted state water   plan].          (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.]          (h)  In developing its management plan, the district shall   use:                (1)  the groundwater availability modeling information   provided by the executive administrator;                (2)  [together 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                (3)  the designation of the appropriate common   reservoir within a management area under Section 36.108.          SECTION 9.  Sections 36.108(c), (d), (d-1), (d-2), (d-3),   and (d-4), Water Code, are amended to read as follows:          (c)  The district representatives shall meet at least   annually to conduct joint planning with the other districts in the   management area [and to review the management plans, the   accomplishments of the management area, and proposals to adopt new   or amend existing desired future conditions]. In conducting joint   planning, [reviewing the management plans, the] districts shall   consider:                (1)  the boundaries of each common reservoir in [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 generally in the management area   and specifically for:                      (A)  conserving and protecting groundwater; and                      (B)  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 in the management area are   being achieved [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, groundwater monitoring data, and other data or information   for the management area and shall propose for adoption desired   future conditions for the relevant aquifers within the management   area.  Before voting on the proposed desired future conditions of   the aquifers under Subsection (d-2), the districts shall consider:                (1)  [aquifer uses or conditions within the management   area, including conditions that differ substantially from one   geographic area to another;                [(2)]  the water supply needs and water management   strategies included in the state water plan;                (2) [(3)]  hydrological conditions that affect   groundwater, including for each common reservoir [aquifer] in the   management area the total estimated recoverable storage as provided   by the executive administrator, and the average annual recharge,   inflows, and discharge;                (3) [(4)]  other environmental impacts, including   impacts on spring flow and other interactions between groundwater   and surface water;                (4) [(5)]  the impact on subsidence;                (5) [(6)     socioeconomic impacts reasonably expected to   occur;                [(7)]  the impact on the interests and rights in   private property, including ownership and the rights of management   area landowners and their lessees and assigns in groundwater as   recognized under Section 36.002;                (6) [(8)]  the feasibility of achieving the desired   future condition and the degree to which any previously adopted   desired future condition is being achieved; and                (7) [(9)]  any other information relevant to the   specific desired future conditions.          (d-1)  After considering and documenting the factors   described by Subsection (d) and other relevant scientific and   hydrogeological data, the districts may establish different   desired future conditions for[:                [(1)]  each common reservoir [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-2)  The desired future conditions proposed under   Subsection (d) must provide a balance between the highest   practicable level of groundwater production and the conservation,   preservation, protection, recharging, and prevention of waste of   groundwater and control of subsidence in each common reservoir in   the management area. This subsection does not prohibit the   establishment of desired future conditions that provide for the   reasonable long-term management of groundwater resources   consistent with the management goals under Section 36.1071(a). The   desired future conditions proposed under Subsection (d) must be   approved by a two-thirds vote of all the district representatives   for distribution to the districts in the management area. A period   of not less than 90 days for public comments begins on the day the   proposed desired future conditions are mailed to the districts.   During the public comment period and after posting notice as   required by Section 36.063, each district shall hold a public   hearing on any proposed desired future conditions relevant to that   district. During the public comment period, the district shall   make available in its office a copy of the proposed desired future   conditions and any supporting materials, such as the documentation   of factors considered under Subsection (d) [and groundwater   availability model run results]. After the public hearing, the   district shall compile for consideration at the next joint planning   meeting a summary of relevant comments received, any suggested   revisions to the proposed desired future conditions, and the basis   for the revisions.          (d-3)  After the earlier of the date on which all the   districts have submitted their district summaries or the expiration   of the public comment period under Subsection (d-2), the district   representatives shall reconvene to review the reports, consider any   district's suggested revisions to the proposed desired future   conditions, and finally adopt the desired future conditions for the   management area. The desired future conditions must be approved by    [adopted as] a resolution adopted by a two-thirds vote of all the   district representatives not later than the 60th day after the date   the public comment period expires. Not later than the 120th day   after the expiration of the public comment period, the [The]   district representatives shall produce a desired future conditions   explanatory report for the management area and submit to the   development board and each district in the management area proof   that notice was posted for the joint planning meeting, a copy of the   resolution, and a copy of the explanatory report. The report must:                (1)  identify each desired future condition and each   common reservoir to which the condition applies;                (2)  provide the policy and technical justifications   for each desired future condition;                (3)  include documentation that the factors under   Subsection (d) were considered by the districts and a discussion of   how the adopted desired future conditions impact each factor;                (4)  list other desired future condition options   considered, if any, and the reasons why those options were not   adopted; and                (5)  discuss reasons why recommendations made by   advisory committees and relevant public comments received by the   districts were or were not incorporated into the desired future   conditions.          (d-4)  Not later than 120th day after the date the public   comment period expires, the district shall submit the explanatory   report under Subsection (d-3) to the development board and [As soon   as possible after a district receives the desired future conditions   resolution and explanatory report under Subsection (d-3), the   district shall] adopt the desired future conditions in the   resolution required by Subsection (d-3) and the explanatory report   that apply to the district.          SECTION 10.  Section 36.1083(e), Water Code, is amended to   read as follows:          (e)  Not later than the 10th day after receiving a petition   described by Subsection (b), the district shall submit a copy of the   petition to the development board and to each district overlying   any part of the applicable common reservoir. On receipt of the   petition, the development board shall conduct:                (1)  an administrative review to determine whether the   desired future condition established by the district meets the   criteria in Section 36.108(d); and                (2)  a study containing scientific and technical   analysis of the desired future condition, including consideration   of:                      (A)  the hydrogeology of the common reservoir,   including the identification and determination of boundaries of   each common reservoir in the management area [aquifer];                      (B)  the explanatory report provided to the   development board under Section 36.108(d-3);                      (C)  the factors described under Section   36.108(d); and                      (D)  any relevant:                            (i)  groundwater availability models;                            (ii)  published studies;                            (iii)  estimates of total recoverable   storage capacity;                            (iv)  average annual amounts of recharge,   inflows, and discharge of groundwater; or                            (v)  information provided in the petition or   available to the development board.          SECTION 11.  Section 36.1084(b), Water Code, is amended to   read as follows:          (b)  The executive administrator shall provide each district   and regional water planning group located wholly or partly in the   management area with the modeled available groundwater in the   management area based upon the desired future conditions adopted by   the districts. The modeled available groundwater must be reported   as the total available groundwater for each common reservoir   identified under Section 36.108.          SECTION 12.  Sections 36.1085 and 36.1086, Water Code, are   amended to read as follows:          Sec. 36.1085.  MANAGEMENT PLAN GOALS AND OBJECTIVES. 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 common reservoirs   [aquifers] as adopted during the joint planning process.          Sec. 36.1086.  JOINT EFFORTS BY DISTRICTS IN A MANAGEMENT   AREA. Districts located within the same 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, aquifer monitoring, 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 13.  Section 36.113(d), Water Code, is amended to   read as follows:          (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)  for each water well, the proposed spacing of the   wells conforms to the district's rules regulating the spacing of   wells under Section 36.116;                (3)  the proposed use of water unreasonably affects   existing groundwater and surface water resources or existing permit   holders;                (4) [(3)]  the proposed annual production of the well   conforms to the district's rules regulating the groundwater   production of wells under Section 36.116;                (5)  the proposed use of water is dedicated to any   beneficial use;                (6) [(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;                (7) [(6)]  the applicant has agreed to avoid waste and   achieve water conservation; and                (8) [(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 14.  Section 36.1131(b), Water Code, is amended to   read as follows:          (b)  The permit may include:                (1)  the name and address of the person to whom the   permit is issued;                (2)  the location of the well;                (3)  the date the permit is to expire if no well is   drilled;                (4)  a statement of the purpose for which the well is to   be used;                (5)  a requirement that the water withdrawn under the   permit be put to beneficial use at all times;                (6)  the location of the use of the water from the well;                (7)  a water well closure plan or a declaration that the   applicant will comply with well plugging guidelines and report   closure to the commission;                (8)  the conditions and restrictions[, if any,] placed   by district rules adopted under Section 36.116 on the rate and   amount of withdrawal;                (9)  any conservation-oriented methods of drilling and   operating prescribed by the district;                (10)  a drought contingency plan prescribed by the   district; and                (11)  other terms and conditions as provided by Section   36.113.          SECTION 15.  The heading to Section 36.1132, Water Code, is   amended to read as follows:          Sec. 36.1132.  DISTRICT MANAGEMENT TO ACHIEVE DESIRED FUTURE   CONDITIONS [PERMITS BASED ON MODELED AVAILABLE GROUNDWATER].          SECTION 16.  Section 36.1132, Water Code, is amended by   amending Subsections (b) and (c) and adding Subsections (b-1) and   (d) to read as follows:          (b)  In issuing permits, each [the] district overlying a   common reservoir shall jointly manage [total] groundwater   production on a long-term basis to achieve an applicable desired   future condition by [and consider]:                (1)  adopting common rules on the spacing of water   wells and groundwater production as provided by Section 36.116;                (2)  considering the modeled available groundwater   determined by the executive administrator;                (3)  monitoring groundwater conditions, including   groundwater levels, in each common reservoir with a desired future   condition in the district and, at least every two years, providing   the collected monitoring data to other districts overlying the   common reservoir;                (4)  preparing a report on the degree to which the   desired future conditions are being achieved in the one-year period   after the collection of monitoring data from a common reservoir and   the relevant desired future conditions; and                (5)  participating in a joint groundwater management   hearing if the report prepared under Subsection (b)(4) indicates   the desired future conditions are not being achieved.          (b-1)  The joint groundwater management hearing held under   Subsection (b)(5) must include a public comment period on the   desired future conditions. During the joint groundwater management   hearing, the districts shall consider:                (1) [(2)]  the executive administrator's estimate of   the current and projected amount of groundwater produced in the   common reservoir under exemptions granted by district rules and   Section 36.117;                (2) [(3)]  the amount of groundwater authorized under   permits previously issued by the districts overlying the common   reservoir [district];                (3)  the potential use of groundwater in the common   reservoir;                (4)  an [a reasonable] estimate of the amount of   groundwater that is actually produced from the common reservoir   under permits issued by the districts [district]; and                (5)  yearly precipitation and production patterns.          (c)  In developing the estimate of exempt use under   Subsection (b-1)(1) [(b)(2)], the executive administrator shall   solicit information from each applicable district overlying the   common reservoir.          (d)  Not later than the first anniversary of the date of the   readoption of a desired future condition that is not being   achieved, the applicable districts shall adopt new common rules   under Section 36.116. The new rules shall immediately apply to all   new permit applications submitted to a district. The districts   shall adopt rules indicating when all existing permits must comply   with the new rules to achieve the desired future condition.          SECTION 17.  Sections 36.114(a) and (h), Water Code, are   amended to read as follows:          (a)  The district by rule shall require [determine each   activity regulated by the district for which] a permit or permit   amendment for:                (1)  drilling a new or replacement well;                (2)  increasing the instantaneous peak production rate   of a well or well system permit;                (3)  increasing the authorized annual production   volume of a well or well system permit; and                (4)  changing the designated use of water produced   under an existing well or well system permit [is required].          (h)  The district shall determine if an application is   administratively complete not later than the 30th day after the   date the district receives the application.  An administratively   complete application requires information set forth in accordance   with Sections 36.113 and 36.1131.          SECTION 18.  Sections 36.116(a), (b), (d), and (e), Water   Code, are amended to read 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; or                      (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;                      (E)  managed depletion; or                      (F)  any combination of the methods listed above   in Paragraphs (A) through (E).          (b)  In promulgating any rules limiting groundwater   production, a [the] district shall maintain well spacing or   groundwater production allocation [may preserve historic or]   existing [use] before the effective date of the rules to the maximum   extent practicable [consistent with the district's management plan   under Section 36.1071 and as provided by Section 36.113].          (d)  For proper [better] management of the groundwater   resources located in a common reservoir, each district overlying a   common reservoir that is under joint management under Section   36.108 shall adopt common rules for regulation of groundwater   production [district or if a district determines that conditions in   or use of an aquifer differ substantially from one geographic area   of the district to another, the district may adopt different rules   for:                [(1)     each aquifer, subdivision of an aquifer, or   geologic strata located in whole or in part within the boundaries of   the district; or                [(2)     each geographic area overlying an aquifer or   subdivision of an aquifer located in whole or in part within the   boundaries of the district].          (e)  In regulating the production of groundwater under   Subsection (a)(2), a district[:                [(1)]  shall select a method that is appropriate based   on the hydrogeological conditions of the aquifer or aquifers in the   district[; and                [(2)     may limit the amount of water produced based on   contiguous surface acreage].          SECTION 19.  Sections 36.122(a), (g), (h), (i), and (q),   Water Code, are amended to read as follows:          (a)  The right to export groundwater is of equal dignity with   the right to produce groundwater.  If an application for a permit or   an amendment to a permit under Section 36.113 proposes the transfer   of groundwater outside of a district's boundaries, the district may   not impose more restrictive permit conditions on persons who will   transfer groundwater than the permit conditions the district   imposes on persons who will use groundwater in the district [also   consider the provisions of this section in determining whether to   grant or deny the permit or permit amendment].          (g)  The district may not deny a permit based on the fact that   the applicant seeks to transfer groundwater outside of the district   [but may limit a permit issued under this section if conditions in   Subsection (f) warrant the limitation, subject to Subsection (c)].          (h)  In addition to conditions provided by Section 36.1131,   the permit shall specify:                (1)  the maximum amount of water that may be   transferred out of the district; and                (2)  the period for which the water may be transferred.          (i)  The period specified by Subsection (h)(2) shall be[:                [(1)     at least three years if construction of a   conveyance system has not been initiated prior to the issuance of   the permit; or                [(2)]  at least 30 years unless the applicant requests   a shorter period [if construction of a conveyance system has been   initiated prior to the issuance of the permit].          (q)  In applying this section, a district must be fair,   impartial, and nondiscriminatory between the transfer of   groundwater outside of the district's boundaries and the use of   groundwater in the district.          SECTION 20.  Section 36.201(b), Water Code, is amended to   read as follows:          (b)  The board may annually levy taxes to pay the maintenance   and operating expenses of the district at a rate not to exceed 37.5   [50] cents on each $100 of assessed valuation.          SECTION 21.  Section 36.205(f), Water Code, is amended to   read as follows:          (f)  A district[, including a district described under   Subsection (d),] may assess a production fee under Subsection (c)   and an export fee under Subsection (g), if applicable, for any water   produced under an exemption under Section 36.117 if that water is   subsequently sold to another person.          SECTION 22.  Section 36.207, Water Code, is amended to read   as follows:          Sec. 36.207.  USE OF FEES.  (a)  A district may use funds   obtained from administrative or[,] production[, or export] fees   collected under a special law governing the district or this   chapter for any purpose consistent with the district's approved   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.          (b)  A district may use funds obtained from export fees   collected under a special law governing the district or this   chapter only to:                (1)  enhance aquifer monitoring, modeling, and data   collection and to enhance research on the advancement of the   scientific understanding of a district's groundwater resources; or                (2)  issue payments to existing permit holders in the   district.          (c)  If a district issues payments to existing permit holders   under Subsection (b)(2), the district shall by rule determine the   amount of a payment to a permit holder based on a pro rata share of:                (1)  the acreage of the permit holder's tract of land on   which the permit holder's well is located; or                (2)  the drainable volume of groundwater in the aquifer   under the permit holder's tract of land.          SECTION 23.  Sections 36.4051(a) and (d), Water Code, are   amended to read as follows:          (a)  The board may take action on any uncontested application   at a properly noticed public meeting held at any time after the   public hearing at which the application is scheduled to be heard.     The board may issue a written order to[:                [(1)]  grant [the application;                [(2)  grant the application with special conditions;]   or                [(3)]  deny the application.          (d)  An applicant may, not later than the 20th day after the   date the board issues an order granting the application, demand a   contested case hearing [if the order:                [(1)     includes special conditions that were not part of   the application as finally submitted; or                [(2)     grants a maximum amount of groundwater production   that is less than the amount requested in the application].          SECTION 24.  Section 8810.103(b), Special District Local   Laws Code, is amended to read as follows:          (b)  Sections 36.122(e) and [36.122(c), (e),] (i)[, and   (j)], Water Code, do not apply to a requirement or limitation   imposed under this section.          SECTION 25.  Section 8824.101, Special District Local Laws   Code, is amended to read as follows:          Sec. 8824.101.  RESTRICTIONS ON GENERAL POWERS. Section   [Sections] 36.103 [and 36.104], Water Code, does [do] not apply to   the district.          SECTION 26.  Section 8852.104(c), Special District Local   Laws Code, is amended to read as follows:          (c)  Section 36.122(i) [Sections 36.122(c), (i), and (j)],   Water Code, does [do] not apply to a requirement or limitation   imposed under this section.          SECTION 27.  Section 11002.112, Special District Local Laws   Code, is amended to read as follows:          Sec. 11002.112.  GROUNDWATER REGULATION.  [Section 36.121,   Water Code, does not apply to a groundwater well owned or used by   the district within the boundaries of the Brewster County   Groundwater Conservation District.]  The rules of the Brewster   County Groundwater Conservation District govern a groundwater well   owned or used by the district within the Brewster County   Groundwater Conservation District.          SECTION 28.  The following provisions of the Special   District Local Laws Code are repealed:                (1)  Section 8837.006(b);                (2)  Section 8851.103;                (3)  Section 8852.108;                (4)  Section 8867.102; and                (5)  Section 8876.005(b).          SECTION 29.  The following provisions of the Water Code are   repealed:                (1)  Section 36.001(29);                (2)  Section 36.001(31), as added by Chapter 415 (H.B.   2767), Acts of the 84th Legislature, Regular Session, 2015;                (3)  Section 36.002(b-1);                (4)  Sections 36.0151(f) and (g);                (5)  Section 36.101(a-1);                (6)  Section 36.104;                (7)  Section 36.1072(g);                (8)  Section 36.108(d-5);                (9)  Sections 36.113(f), (h), and (i);                (10)  Section 36.121;                (11)  Sections 36.122(b), (c), (j), (m), and (n); and                (12)  Section 36.205(d).          SECTION 30.  As soon as practicable after the effective date   of this Act, each groundwater conservation district shall adopt   rules as necessary to implement the changes in law made by this Act.          SECTION 31.  The changes in law made by this Act apply only   to an application for a permit or a permit amendment that is   received by a groundwater conservation district on or after the   effective date of this Act.  An application for a permit or permit   amendment that is received before the effective date of this Act is   governed by the law in effect on the date the application is   received, and that law is continued in effect for that purpose.          SECTION 32.  The changes in law made by this Act apply only   to a suit involving a groundwater conservation district that is   filed on or after the effective date of this Act. A suit filed   before the effective date of this Act is subject to the law in   effect on the date the suit is filed, and that law is continued in   effect for that purpose.          SECTION 33.  This Act takes effect September 1, 2017.