(a) In this section:
(1) “Affected person” has the meaning assigned by Section 36.1082.
(2) “Development board” means the Texas Water Development Board.
(3) “Office” means the State Office of Administrative Hearings.
(b) Not later than the 120th day after the date on which a district adopts a desired future condition under § 36.108(d-4), an affected person may file a petition with the district requiring that the district contract with the office to conduct a hearing appealing the reasonableness of the desired future condition. The petition must provide evidence that the districts did not establish a reasonable desired future condition of the groundwater resources in the management area.

(c) Repealed by Acts 2015, 84th Leg., R.S., Ch. 993 , Sec. 6, eff. September 1, 2015.
(d) Repealed by Acts 2015, 84th Leg., R.S., Ch. 993 , Sec. 6, eff. September 1, 2015.
(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. 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 § 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 aquifer;
(B) the explanatory report provided to the development board under § 36.108(d-3);
(C) the factors described under § 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.
(f) The development board must complete and deliver to the office a study described by Subsection (e)(2) not later than the 120th day after the date the development board receives a copy of the petition.
(g) For the purposes of a hearing conducted under Subsection (b):
(1) the office shall consider the study described by Subsection (e)(2) and the desired future conditions explanatory report submitted to the development board under § 36.108(d-3) to be part of the administrative record; and
(2) the development board shall make available relevant staff as expert witnesses if requested by the office or a party to the hearing.
(h) Not later than the 60th day after receiving a petition under Subsection (b), the district shall:
(1) contract with the office to conduct the contested case hearing requested under Subsection (b); and
(2) submit to the office a copy of any petitions related to the hearing requested under Subsection (b) and received by the district.
(i) A hearing under Subsection (b) must be held:
(1) at a location described by § 36.403(c); and
(2) in accordance with Chapter 2001, Government Code, and the rules of the office.
(j) During the period between the filing of the petition and the delivery of the study described by Subsection (e)(2), the district may seek the assistance of the Center for Public Policy Dispute Resolution, the development board, or another alternative dispute resolution system to mediate the issues raised in the petition. If the district and the petitioner cannot resolve the issues raised in the petition, the office will proceed with a hearing as described by this section.
(k) The district may adopt rules for notice and hearings conducted under this section that are consistent with the procedural rules of the office. In accordance with rules adopted by the district and the office, the district shall provide:
(1) general notice of the hearing; and
(2) individual notice of the hearing to:
(A) the petitioner;
(B) any person who has requested notice;
(C) each nonparty district and regional water planning group located in the same management area as a district named in the petition;
(D) the development board; and
(E) the commission.
(l) Before a hearing conducted under this section, the office shall hold a prehearing conference to determine preliminary matters, including:
(1) whether the petition should be dismissed for failure to state a claim on which relief can be granted;
(2) whether a person seeking to participate in the hearing is an affected person who is eligible to participate; and
(3) which affected persons shall be named as parties to the hearing.
(m) The petitioner shall pay the costs associated with the contract for the hearing under this section. The petitioner shall deposit with the district an amount sufficient to pay the contract amount before the hearing begins. After the hearing, the office may assess costs to one or more of the parties participating in the hearing and the district shall refund any excess money to the petitioner. The office shall consider the following in apportioning costs of the hearing:
(1) the party who requested the hearing;
(2) the party who prevailed in the hearing;
(3) the financial ability of the party to pay the costs;
(4) the extent to which the party participated in the hearing; and
(5) any other factor relevant to a just and reasonable assessment of costs.
(n) On receipt of the administrative law judge’s findings of fact and conclusions of law in a proposal for decision, including a dismissal of a petition, the district shall issue a final order stating the district’s decision on the contested matter and the district’s findings of fact and conclusions of law. The district may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify an order issued by the administrative law judge, as provided by § 2001.058(e), Government Code.
(o) If the district vacates or modifies the proposal for decision, the district shall issue a report describing in detail the district’s reasons for disagreement with the administrative law judge’s findings of fact and conclusions of law. The report shall provide the policy, scientific, and technical justifications for the district’s decision.
(p) If the district in its final order finds that a desired future condition is unreasonable, not later than the 60th day after the date of the final order, the districts in the same management area as the district that received the petition shall reconvene in a joint planning meeting for the purpose of revising the desired future condition. The districts in the management area shall follow the procedures in § 36.108 to adopt new desired future conditions applicable to the district that received the petition.
(q) A final order by the district finding that a desired future condition is unreasonable does not invalidate the adoption of a desired future condition by a district that did not participate as a party in the hearing conducted under this section.
(r) The administrative law judge may consolidate hearings requested under this section that affect two or more districts. The administrative law judge shall prepare separate findings of fact and conclusions of law for each district included as a party in a multidistrict hearing.