By:

____________________

S.B. No. 1392

Substitute the following for S.B. No. 1392:
By:

____________________

C.S.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.

Sections 36.001(2), (7), (25), and (30), Water

Code, are amended to read as follows:
(2)

"Commission"

means

the

Texas

[Natural

Resource

Conservation] Commission on Environmental Quality or its successor.
(7)

"Subdivision of a groundwater reservoir" means a

definable part of a groundwater reservoir in which the groundwater
supply will not be appreciably affected by withdrawing water from
any other part of the reservoir, as indicated by known geological
and hydrological conditions and relationships [and on foreseeable
economic development] at the time the subdivision is designated or
altered.
(25)

"Modeled available groundwater" means the total

amount of water within a subdivision of a groundwater 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 subdivision of a groundwater reservoir [the

Page - 1 -

 groundwater

resources]

in

a

management

C.S.S.B. No. 1392
area at one or more

specified future times.
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 development of

groundwater to meet the needs of this state;
(3)

[, and] use the best available science;

(4)

treat each groundwater owner fairly; and

(5)

work jointly with other groundwater conservation

districts [in the conservation and development of groundwater]
through similar 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:

Page -2 -

 C.S.S.B. No. 1392
A [The legislature recognizes that a] landowner owns the

(a)

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 groundwater for a beneficial use

without causing waste; and
(3)
(d)

[have] any other right recognized under common law.

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 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 applicable subdivision of a groundwater
reservoir [the aquifer] based on the number of acres owned by the

Page -3 -

 C.S.S.B. No. 1392
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 members of the public who reside in the district 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.

Page -4 -

 SECTION 7.

Sections

36.101(a)

and

C.S.S.B. No. 1392
(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)
[(2)]

[consider all groundwater uses and needs;
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

Page -5 -

 C.S.S.B. No. 1392
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)
groundwater

for the district and for each subdivision of a

reservoir

designated

under

Section

36.108

in

the

district, include estimates of the following:
(A)

modeled available 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];

Page -6 -

 C.S.S.B. No. 1392
[for each aquifer,] the estimated annual volume

(D)

of water that discharges:
(i)

[from the aquifer] to springs and any

surface water bodies, including lakes, streams, and rivers; and
(ii)
(E)

through evaporation or transpiration; and

the annual volume of lateral and vertical flow

into and out of:
(i)

each

subdivision

of

a

groundwater

reservoir and any adjoining subdivisions; and
(ii)

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 subdivision of a groundwater 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

Page -7 -

 C.S.S.B. No. 1392
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.

A newly created [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
initial management plan is approved as provided in Section 36.1072.
(h)

In developing its management plan, the district shall

use:
(1)

the delineation of the appropriate subdivisions of

groundwater reservoirs in a management area under Section 36.108;
(2)

the groundwater availability modeling information

for each subdivision of a groundwater reservoir in the district
provided by the executive administrator; and
(3)

[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.
SECTION 9.

Section 36.108, Water Code, is amended by amending

Subsections (c), (d), (d-1), (d-2), (d-3), and (d-4) and adding
Subsections (c-1) and (c-2) to read as follows:
(c)
to

The district representatives shall meet at least annually

conduct

management

joint
area

planning
[and

to

with
review

the
the

other

districts

management

in

the

plans,

the

accomplishments of the management area, and proposals to adopt new
or amend existing desired future conditions].

Page -8 -

In conducting joint

 C.S.S.B. No. 1392
planning, [reviewing the management plans, the] districts shall
consider:
(1)

the boundaries of each subdivision of a groundwater

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)
to

the

any other matters that the boards consider relevant

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].
(c-1)

Districts in a management area jointly shall delineate

the boundaries of each subdivision of a groundwater reservoir in
the management area, using the best available science.

On request

by a district, the development board shall provide technical
assistance with the development of the initial boundaries and any
subsequent

updates

to

the

boundaries

of

a

subdivision.

The

delineated boundaries of each subdivision must be updated as
necessary to accurately reflect the actual boundaries.
(c-2)

Under Subsection (c-1), a district:

Page -9 -

 C.S.S.B. No. 1392
may take into consideration conditions that differ

(1)

substantially from one geographic area to another in delineating
boundaries of a subdivision of a groundwater reservoir;
(2)

shall report to the development board the surface

level boundaries of a subdivision of a groundwater reservoir using
metes and bounds; and
(3)

shall maintain in each office of the districts in

the management area copies of the delineations of the subdivisions
of groundwater reservoirs and the report made under Subdivision
(2).
(d)

Not later than September 1, 2010, and every five years

thereafter, the districts shall consider groundwater monitoring
data,

groundwater

availability

models,

and

other

data

or

information for the management area and shall propose for adoption
desired future conditions for each subdivision of a groundwater
reservoir [the relevant aquifers] within the management area.
Before voting on the proposed desired future conditions of each
applicable subdivision [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)]
groundwater,

hydrological

including

for

each

conditions
subdivision

Page -10 -

that
of

a

affect

groundwater

 C.S.S.B. No. 1392
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)]
(5) [(6)

the impact on subsidence;
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

subdivision

of

a

groundwater

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

Page -11 -

 C.S.S.B. No. 1392
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

reservoir

in

the

prohibit

the

in

each

management

establishment

subdivision

area.
of

This

desired

of

a

groundwater

subsection

future

does

conditions

not
that

provide for the reasonable long-term management of groundwater
resources

consistent

36.1071(a).

The

with

the

desired

management

future

goals

conditions

under

Section

proposed

under

Subsection (d) must be approved, by a two-thirds vote of all the
[district] representatives of districts overlying the applicable
subdivision, 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

documentation

of

and

any

factors

supporting

considered

materials,

under

groundwater availability model run results.

such

Subsection

as

the

(d)

and

After the public

hearing, the district shall compile for consideration at the next

Page -12 -

 C.S.S.B. No. 1392
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 of districts overlying the applicable
subdivision of a groundwater reservoir not later than the 90th day
after the date the public comment period expires.

Not later than

the 180th 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

subdivision of a groundwater reservoir to which the condition
applies;
(2)

provide the policy and technical justifications for

each desired future condition;

Page -13 -

 (3)

include

documentation

that

C.S.S.B. No. 1392
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 subdivision of a groundwater
reservoir.

On receipt of the petition, the development board shall

conduct:
(1)

an administrative review to determine whether the

Page -14 -

 C.S.S.B. No. 1392
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)
groundwater
determination

the

hydrogeology

reservoir,
of

the

including

boundaries

of

of

the

subdivision

of

a

the

identification

and

each

subdivision

the

report

provided

in

management area [aquifer];
(B)

the

explanatory

to

the

development board under Section 36.108(d-3);
(C)

the factors described under Section 36.108(d);

(D)

any relevant:

and

(i)
(ii)

groundwater availability models;
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.

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

Page -15 -

 desired

future

conditions

of

C.S.S.B. No. 1392
relevant subdivisions of

the

groundwater reservoirs [aquifers] as adopted during the joint
planning process.
Sec. 36.1086.
AREA.

JOINT EFFORTS BY DISTRICTS IN A MANAGEMENT

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.
include

studies

subdivision

of

of

groundwater

groundwater

These joint efforts may

availability

reservoir

and

[aquifer]

quality,

modeling

and

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 in each subdivision of a groundwater
reservoir,

brush

control,

weather

modification,

desalination,

regionalization, and treatment or conveyance facilities.
districts

may

including

those

contract
of

under

Chapter

their

791,

existing

Government

The

authorizations
Code,

if

their

contracting authority is not limited by Sections 791.011(c)(2) and
(d)(3) and Section 791.014, Government Code.
SECTION 12.

Sections

36.113(d)

and

(e),

Water

Code,

are

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:

Page -16 -

 (1)

the

application

conforms

to

C.S.S.B. No. 1392
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)

the

proposed

annual

production

conforms

to

the

district's rules regulating the groundwater production of wells
under Section 36.116;
(5) [(3)]

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.

Page -17 -

 (e)

The

conditions

district

on

new

may

permit

impose

more

applications

C.S.S.B. No. 1392
restrictive permit

and

permit

amendment

applications to increase use by historic users if the limitations:
(1)

apply to all subsequent new permit applications and

permit amendment applications to increase 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;

(4)

are consistent with the groundwater ownership and

and

rights recognized by Section 36.002 and with Section 59, Article
XVI, Texas Constitution.
SECTION 13.

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

(4)

a statement of the purpose for which the well is to

(5)

a requirement that the water withdrawn under the

drilled;

be used;

permit be put to beneficial use at all times;
(6)

the location of the use of the water from the well;

Page -18 -

 C.S.S.B. No. 1392
a water well closure plan or a declaration that the

(7)

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 14.

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 15.

Section

36.1132,

Water

Code,

is

amended

by

amending Subsections (b) and (c) and adding Subsections (b-1) and
(b-2) to read as follows:
(b)

Each [In issuing permits, the] district overlying a

subdivision of a groundwater reservoir shall manage jointly [total]
groundwater

production

on

a

long-term

basis

to

achieve

an

applicable desired future condition by [and consider]:
(1)

adopting similar rules on the spacing of water wells

and groundwater production as provided by Section 36.116;
(2)

considering

the

modeled

Page -19 -

available

groundwater

 C.S.S.B. No. 1392
determined by the executive administrator;
(3)

monitoring

groundwater

conditions,

including

groundwater levels, in each subdivision with a desired future
condition in the district and, at least every two years, providing
the collected monitoring data to other districts overlying the
subdivision;
(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 subdivision and the
relevant desired future conditions; and
(5)

participating in a joint groundwater management

hearing if the report prepared under Subdivision (4) indicates the
desired future conditions are not being achieved.
(b-1)

Not later than the second anniversary of the date of

the final adoption of a desired future condition under Section
36.108, and every five years thereafter, district representatives
in a management area shall develop a report as described by this
subsection.

The districts shall maintain a copy of the report at

each district office.
(1)

The report must:

identify

and

compare

the

rules

adopted

under

Subsection (b)(1) by each district over each subdivision of a
groundwater reservoir located in the management area; and
(2)
considered
provided

in

by

identify
the

differences

establishment

Section

36.108

in

of

and

differences in the rules.

Page -20 -

the

rules

desired

based
future

justification

on

factors

conditions
for

those

 C.S.S.B. No. 1392
The joint groundwater management hearing held under

(b-2)

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)]
current

and

the executive administrator's estimate of the

projected

amount

of

groundwater

produced

in

the

subdivision of a groundwater reservoir under exemptions granted by
district rules and Section 36.117;
(2) [(3)]
permits

the amount of groundwater authorized under

previously

issued

by

the

districts

overlying

the

subdivision of a groundwater reservoir [district];
(3)

the

potential

amount

and

frequency

of

use

of

amount

of

groundwater in the subdivision of a groundwater reservoir;
(4)

an

[a

reasonable]

estimate

of

the

groundwater that is actually produced from each district in the
subdivision of a groundwater reservoir under permits issued by the
districts [district]; and
(5)
(c)
(b-2)(1)

yearly precipitation and production patterns.

In developing the estimate of exempt use under Subsection
[(b)(2)],

the

executive

administrator

shall

solicit

information from each applicable district overlying the subdivision
of a groundwater reservoir.
SECTION 16.

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

Page -21 -

 C.S.S.B. No. 1392
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 60th 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 17.

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)
capacity,

pump

requiring

size,

or

wells

other

with

a

certain

characteristic

production

related

to

the

construction or operation of and production from a well to be

Page -22 -

 C.S.S.B. No. 1392
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, the district may preserve historic or existing use
before the effective date of the rules to the maximum extent
practicable consistent with the groundwater ownership and rights
recognized by Section 36.002, Section 59, Article XVI, Texas
Constitution, and 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 subdivision of a groundwater reservoir, each

Page -23 -

 C.S.S.B. No. 1392
district overlying a subdivision that is under joint management
under Section 36.108 shall adopt similar rules for regulation of
groundwater production under Section 36.1132(b) [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 protection of the groundwater ownership and rights described by
Section

36.002

and

the

hydrogeological

conditions

of

each

subdivision of a groundwater reservoir [the aquifer or aquifers] in
the district[; and
[(2)

may limit the amount of water produced based on

contiguous surface acreage].
SECTION 18.

Sections 36.122(a), (h), (i), and (q), Water

Code, are amended to read as follows:
(a)

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

Page -24 -

 C.S.S.B. No. 1392
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].
(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)
(i)

the period for which the water may be transferred.

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 19.

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.

Page -25 -

 C.S.S.B. No. 1392
Section 36.205(f), Water Code, is amended to read

SECTION 20.
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 21.

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 enhance:
(1)

monitoring, modeling, and data collection regarding

subdivisions of groundwater reservoirs managed by the district; and
(2)

research

on

the

advancement

of

the

scientific

understanding of a district's groundwater resources.
SECTION 22.

Sections 36.4051(a) and (d), Water Code, are

amended to read as follows:

Page -26 -

 (a)

C.S.S.B. No. 1392
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

provided that the applicant agrees to the conditions before the
issuance of the order; or
(3)
(d)

deny the application.

An applicant may, not later than the 20th day after the

date the board issues an order granting or denying 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 23.

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 24.

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.

Page -27 -

 C.S.S.B. No. 1392
Section 8833.102, Special District Local Laws

SECTION 25.

Code, is amended to read as follows:
Sec. 8833.102.

LIMITATIONS ON DISTRICT POWERS.

The district

may not impose:
(1)

a tax; [or]

(2)

a fee on a well used exclusively for domestic or

livestock watering purposes; or
(3)

production fees for an annual period greater than $1

per acre-foot for water used for agricultural use or 17 cents per
thousand gallons for water used for any other purpose.
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 8867.101, Special District Local Laws

Code, is amended to read as follows:
Sec. 8867.101.
DUTIES.

GROUNDWATER CONSERVATION DISTRICT POWERS AND

Except as provided by Section [Sections 8867.102 and]

8867.103(b), the district has the rights, powers, privileges,
functions, and duties provided by the general law of this state,
including

Chapter

36,

Water

Code,

applicable

to

groundwater

conservation districts created under Section 59, Article XVI, Texas
Constitution.
SECTION 28.

Section 11002.112, Special District Local Laws

Code, is amended to read as follows:

Page -28 -

 Sec. 11002.112.

C.S.S.B. No. 1392
[Section 36.121,

GROUNDWATER REGULATION.

Water Code, does not apply to a groundwater well owned or used by
the

district

within

the

boundaries

Groundwater Conservation District.]

of

the

Brewster

County

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 29.

Section

11,

Chapter

1321,

Acts

of

the

77th

Legislature, Regular Session, 2001, is amended by adding Subsection
(b-1) to read as follows:
(b-1)

The district may not assess production fees for an

annual period greater than $1 per acre-foot for water used for
agricultural use or 17 cents per thousand gallons for water used
for any other purpose.
SECTION 30.

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 31.

The following provisions of the Water Code are

repealed:
(1)

Section 36.001(31), as added by Chapter 415 (H.B.

2767), Acts of the 84th Legislature, Regular Session, 2015;
(2)

Sections 36.0151(f) and (g);

Page -29 -

 C.S.S.B. No. 1392
(3)

Section 36.101(a-1);

(4)

Section 36.104;

(5)

Section 36.1072(g);

(6)

Section 36.108(d-5);

(7)

Sections 36.113(h) and (i);

(8)

Section 36.121;

(9)

Sections 36.122(b), (c), (j), (m), and (n); and

(10)

Section 36.205(d).

SECTION 32.

Not later than September 1, 2019, a groundwater

conservation district in a management area under Section 36.108,
Water Code, as amended by this Act, shall meet and delineate the
initial boundaries of each subdivision of a groundwater reservoir
in the management area as required by Section 36.108(c-1), Water
Code, as added by this Act.
SECTION 33.

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 34.

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 35.

The changes in law made by this Act apply only to

Page -30 -

 C.S.S.B. No. 1392
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 36.

This Act takes effect September 1, 2017.

Page -31 -