85R4810 TSR-F
	By: Nevárez	H.B. No. 4322

	A BILL TO BE ENTITLED
	AN ACT
	relating to the creation of the Val Verde County Groundwater
	Conservation District; providing authority to issue bonds;
	providing authority to impose fees, surcharges, and taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle H, Title 6, Special District Local Laws
	Code, is amended by adding Chapter 8872 to read as follows:
	CHAPTER 8872. VAL VERDE COUNTY GROUNDWATER CONSERVATION DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 8872.001.  DEFINITIONS. (a) Except as provided by
	Subsection (b), the definitions in Section 36.001, Water Code,
	apply to this chapter.
	(b)  In this chapter:
	(1)  "Aquifer" means that part of the Edwards-Trinity
	(Plateau) Aquifer located in Val Verde County.
	(2)  "Board" means the board of directors of the
	district.
	(3)  "City" means the City of Del Rio.
	(4)  "Commissioners court" means the Val Verde County
	Commissioners Court.
	(5)  "Director" means a member of the board.
	(6)  "District" means the Val Verde County Groundwater
	Conservation District.
	(7)  "Domestic use" means the use of groundwater in the
	district by a member of a well owner's household or by household
	employees, tenants, licensees, or guests for the following
	purposes:
	(A)  drinking, washing, or culinary activities;
	(B)  irrigation of:
	(i)  lawns;
	(ii)  family gardens; or
	(iii)  orchards, if the produce of the
	orchard is used only for household consumption;
	(C)  filling or maintaining swimming pools,
	decorative ponds, or fountains located on the well owner's
	property; and
	(D)  drinking water for domestic animals not
	raised, maintained, or sold for commercial purposes.
	(8)  "Existing well" means a well that is completed to
	produce groundwater in Val Verde County on or before January 1,
	2017. The term includes a well that is reworked or repaired after
	January 1, 2017, to restore the well's historic production
	capacity, provided that the reworking or repair does not enlarge
	the diameter of the well bore as the well bore existed on January 1,
	2017.
	(9)  "Historic use" means the production and beneficial
	use of groundwater from an existing well in any calendar year before
	January 1, 2017.
	(10)  "Political subdivision" means a governmental
	entity of this state, including a county, municipality, state
	agency, or district or authority created under Section 52, Article
	III, or Section 59, Article XVI, Texas Constitution. The term also
	includes a nonprofit water supply corporation created under Chapter
	67, Water Code.
	(11)  "Retail public utility" has the meaning assigned
	by Section 13.002, Water Code.
	(12)  "Rural area" means an area that is located:
	(A)  inside the boundaries of the district; and
	(B)  outside the corporate boundaries and
	extraterritorial jurisdiction of a municipality in the district.
	Sec. 8872.002.  NATURE OF DISTRICT; PURPOSE. (a) The
	district is a groundwater conservation district in Val Verde County
	created under and essential to accomplish the purposes of Section
	59, Article XVI, Texas Constitution, including:
	(1)  the permitting, recharge, conservation,
	protection, and prevention of the waste of groundwater in Val Verde
	County;
	(2)  the control of subsidence caused by the
	unreasonable withdrawal of groundwater;
	(3)  the regulation of transporting groundwater
	outside the boundaries of the district;
	(4)  the regulation of groundwater production and the
	implementation of drought management and conservation plans for the
	reduction of drawdown when conditions warrant action to protect
	spring flow and base flow; and
	(5)  the management of the issuance of permits by
	requiring studies and groundwater availability model analyses of
	permit applications that include the use of conservation triggers
	to mitigate the impact on spring flow, base flow, and drawdown.
	(b)  The district is created to serve a public use and
	benefit.
	(c)  All of the land and other property included within the
	boundaries of the district will benefit from the works and projects
	that are to be accomplished by the district under powers conferred
	by Section 59, Article XVI, Texas Constitution, this chapter, and
	Chapter 36, Water Code.
	Sec. 8872.003.  CONFIRMATION ELECTION REQUIRED. If the
	creation of the district is not confirmed at a confirmation
	election held under Section 8872.023 before September 1, 2022:
	(1)  the district is dissolved September 1, 2022,
	except that:
	(A)  any debts incurred shall be paid;
	(B)  any assets that remain after the payment of
	debts shall be transferred to Val Verde County and the city in
	proportion to the amount each entity has contributed to the costs of
	the confirmation election and district operations; and
	(C)  the organization of the district shall be
	maintained until all debts are paid and remaining assets are
	transferred; and
	(2)  this chapter expires September 1, 2024.
	Sec. 8872.004.  INITIAL DISTRICT TERRITORY. The boundaries
	of the district are coextensive with the boundaries of Val Verde
	County.
	SUBCHAPTER A-1. TEMPORARY PROVISIONS
	Sec. 8872.021.  APPOINTMENT OF TEMPORARY DIRECTORS;
	VACANCIES; TERMS. (a) As soon as practicable after the effective
	date of the Act enacting this chapter, seven temporary directors
	shall be appointed as follows:
	(1)  three temporary directors shall be appointed by
	the commissioners court;
	(2)  three temporary directors shall be appointed by
	the city council of the city; and
	(3)  one temporary director shall be appointed jointly
	by the county judge of Val Verde County and the mayor of the city.
	(b)  An individual appointed to serve as a temporary director
	must be at least 18 years of age and be a registered voter of Val
	Verde County.
	(c)  If there is a vacancy on the temporary board of
	directors of the district, the remaining temporary directors shall
	appoint a person to fill the vacancy in a manner that meets the
	representational requirements of this section.
	(d)  Temporary directors serve until the earlier of:
	(1)  the date the temporary directors become initial
	directors under Section 8872.024; or
	(2)  the date this chapter expires under Section
	8872.003.
	(e)  Before the confirmation election under Section
	8872.023, the presiding officer of the district or the presiding
	officer's designee may represent the district in the joint planning
	process under Section 36.108, Water Code, and shall be considered a
	voting district representative.
	Sec. 8872.022.  ORGANIZATIONAL MEETING OF TEMPORARY
	DIRECTORS. (a) As soon as practicable after all the temporary
	directors have qualified under Section 36.055, Water Code, a
	majority of the temporary directors shall convene the
	organizational meeting of the district at a location within the
	district agreeable to a majority of the directors. If an agreement
	on location cannot be reached, the organizational meeting shall be
	at the Val Verde County Courthouse.
	(b)  At the organizational meeting described by Subsection
	(a), the temporary directors shall:
	(1)  elect a president as presiding officer, vice
	president, secretary, and treasurer;
	(2)  schedule the confirmation election described by
	Section 8872.023; and
	(3)  notify the applicable groundwater management area
	of the district's creation, subject to confirmation under Section
	8872.023.
	Sec. 8872.023.  CONFIRMATION ELECTION. (a) The temporary
	board shall order an election to be held on the first available
	uniform election date in November following January 1, 2018, to
	confirm the creation of the district and authorize the collection
	of taxes.
	(b)  The ballot for the election must be printed to permit
	voting for or against the following proposition: "The creation of
	the Val Verde County Groundwater Conservation District and the
	imposition of an ad valorem tax in the district at a rate not to
	exceed five cents for each $100 of assessed valuation."
	(c)  Except as provided by this section, a confirmation
	election must be conducted as provided by Sections 36.017(b)-(i),
	Water Code, and the Election Code.
	(d)  If the district's creation is not confirmed at an
	election held under this section, the temporary directors may order
	one or more subsequent elections to be held to confirm the creation
	of the district not earlier than the first anniversary of the
	preceding confirmation election.  If the district's creation is not
	confirmed at an election held under this section before September
	1, 2022, the district is dissolved in accordance with Section
	8872.003.
	(e)  The costs of an election held under this chapter shall
	be paid by Val Verde County and the city.
	Sec. 8872.024.  INITIAL DIRECTORS.  (a)  If the creation of
	the district is confirmed at an election held under Section
	8872.023, the temporary directors become the initial directors and
	serve until permanent directors are elected or appointed under
	Section 8872.052.
	(b)  The initial directors of the board shall draw lots to
	determine which three directors shall serve a term expiring
	December 1 of the year two years after the date of the election in
	which the district is confirmed and which four directors shall
	serve a term expiring December 1 of the year four years after the
	date of the election in which the district is confirmed.
	(c)  The initial directors shall provide notice to the
	members of the groundwater management area in which the district is
	located that the creation of the district is confirmed.
	Sec. 8872.025.  EXPIRATION OF SUBCHAPTER. This subchapter
	expires September 1, 2023.
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 8872.051.  COMPOSITION OF BOARD. The district is
	governed by a board of seven directors.
	Sec. 8872.052.  TERMS; APPOINTMENT AND ELECTION OF
	DIRECTORS; QUALIFICATIONS. (a) Directors serve staggered
	four-year terms, with three or four terms expiring December 1 every
	other year. Directors are elected or appointed as follows:
	(1)  one director is elected from each of the four
	county commissioners precincts by the voters of the applicable
	precinct to be designated as the director whose place number
	matches the applicable precinct number;
	(2)  one director is elected by the voters of the
	district at large to be designated as the director for place number
	five; and
	(3)  two directors who each own at least 1,000 acres of
	land in the rural area are appointed by the county judge of Val
	Verde County and the mayor of the city, respectively, to be
	designated as the directors for place numbers six and seven.
	(b)  To be elected or appointed under this section, a person
	must be at least 18 years of age and:
	(1)  a registered voter of Val Verde County; and
	(2)  if elected from a commissioners court precinct, a
	resident of that precinct.
	(c)  An election to elect directors must be held on the
	uniform election date in November of even-numbered years.
	(d)  A director may serve consecutive terms.
	Sec. 8872.053.  VACANCIES. (a) If there is a vacancy on the
	board, a majority of the board shall appoint a person to fill the
	vacancy for the remainder of the term of the vacant director place.
	The person appointed to fill the vacancy must meet the
	qualifications under Section 8872.052 for the vacant place.
	(b)  If the board has not filled a vacancy before the 90th day
	after the date of the vacancy, the county judge of Val Verde County
	and the mayor of the city shall jointly appoint a person that meets
	the qualifications under Section 8872.052 for the vacant place to
	serve as director for the remainder of the term being filled.
	Sec. 8872.054.  COMPENSATION. (a) A director is not
	entitled to receive compensation for performing the duties of a
	director.
	(b)  The board may authorize a director to receive
	reimbursement for the director's reasonable and actual expenses
	incurred while engaging in activities inside or outside the
	district on behalf of the board.
	Sec. 8872.055.  ELECTION OF BOARD OFFICERS. (a) At the
	first meeting of the board in each calendar year, the board shall
	elect directors to serve as the president, vice president,
	secretary, and treasurer.
	(b)  The president shall serve as the presiding officer of
	the board.
	(c)  The treasurer shall serve as the financial officer of
	the district.
	SUBCHAPTER C. POWERS AND DUTIES
	Sec. 8872.101.  GENERAL POWERS. (a) Except as otherwise
	provided by this chapter, the district has all of the rights,
	powers, privileges, functions, and duties provided by the general
	law of this state applicable to groundwater conservation districts
	created under Section 59, Article XVI, Texas Constitution,
	including Chapter 36, Water Code.
	(b)  Before confirmation of the district, the district's
	powers are limited to:
	(1)  performance of the duties necessary to hold an
	election to confirm the creation of the district;
	(2)  registration of existing wells that are not exempt
	from the district requirement to obtain a permit under this chapter
	or Chapter 36, Water Code;
	(3)  collection of annual groundwater production
	reports from wells that are not exempt from the district
	requirement to obtain a permit under this chapter or Chapter 36,
	Water Code; and
	(4)  participation in joint planning with other
	districts as provided by Section 8872.021(e).
	(c)  The district shall adopt rules and prescribe forms
	necessary to implement Subsections (b)(2) and (3).
	(d)  Section 36.121, Water Code, does not apply to the
	district.
	Sec. 8872.102.  NO EMINENT DOMAIN POWER. The district may
	not exercise the power of eminent domain.
	Sec. 8872.103.  PERMITS: RULES. (a) The district shall
	adopt rules to:
	(1)  require a person to obtain a permit from the
	district to drill and produce groundwater from a well, including an
	existing well, unless the well is exempt from permitting under this
	chapter or Chapter 36, Water Code;
	(2)  regulate the terms of a transfer of groundwater
	out of the district;
	(3)  regulate the spacing of wells drilled after
	September 1, 2017, to prevent unreasonable adverse interference
	with other wells;
	(4)  provide for the uniform and nondiscriminatory
	reduction or curtailment of the production of groundwater by all
	permit holders in the district, if necessary, to protect spring
	flow and base flow and reduce aquifer drawdown based on scientific
	data provided to the district;
	(5)  limit groundwater production:
	(A)  by the spacing of wells;
	(B)  by basing production on acreage or tract
	size; or
	(C)  for a public water supplier, by basing
	production on the service area of the supplier; and
	(6)  require the owner of a well that is not exempt from
	the district requirement to obtain a permit under this chapter or
	Chapter 36, Water Code, to report to the district in January of each
	year the annual production of groundwater from the well based on
	metered production.
	(b)  The terms of a permit that authorizes the production of
	groundwater for transfer out of the district for beneficial use
	must be consistent with applicable law, including Section 36.122,
	Water Code, and may not be more restrictive than the terms of a
	permit authorizing the production of groundwater for beneficial use
	inside the district.
	(c)  The district may establish permit conditions and
	limitations as provided by Section 36.122, Water Code.
	Sec. 8872.104.  PERMITS: LANDOWNERS GENERALLY. (a) The
	district shall grant a permit that authorizes a person to drill one
	or more wells not to exceed 12 inches in diameter on land owned or
	controlled by the person through a lease or other legal right.
	(b)  Under this section, the district shall grant the
	drilling permit holder a permit for the production of groundwater
	not to exceed an actual production capacity of two acre-feet per
	year for each contiguous acre of land associated with the well.
	(c)  The district shall issue a production permit described
	by Subsection (b) for an existing well that has a diameter not
	greater than 12 inches for the production of groundwater not to
	exceed an actual production capacity of two acre-feet per year.
	Sec. 8872.105.  PERMITS: CITY. The district shall grant the
	city permits in the city's name that authorize the city to pump from
	all wells operated or controlled by the city a cumulative volume of
	groundwater of 18,400 acre-feet per year.
	Sec. 8872.106.  PERMITS: RETAIL PUBLIC UTILITY. (a) The
	district shall grant a permit to a retail public utility in the
	district or to a political subdivision other than the city that is
	providing water or sewer service on or before the effective date of
	the Act enacting this chapter.  The permit must authorize the
	production of a cumulative volume of groundwater from the wells
	owned by the entity in an amount equal to the amount of groundwater
	required to meet the entity's current and projected needs as
	determined under Section 13.250, Water Code.
	(b)  The permitted entity may not resell the groundwater
	produced under the permit to any person for use or resale outside
	the entity's service area, including the area covered by a
	certificate of convenience and necessity, and must put the water to
	beneficial use within the entity's service area.
	Sec. 8872.107.  PERMITS: AGRICULTURE. (a) A person is
	entitled to apply for and receive a permit granted for agricultural
	irrigation.  The permit must authorize the production of
	groundwater necessary for the irrigation of crops equal to three
	acre-feet per year for each acre of land inside the district using
	pivot, roller, echo drip, or bordered floor irrigation.
	(b)  A permit issued under this section is nontransferable
	and expires on the date the well ceases to be used solely for
	irrigation inside the district.
	Sec. 8872.108.  PERMITS: COMMERCE AND INDUSTRY. The
	district shall grant a permit for the production of groundwater
	from an existing well that is beneficially used for commercial or
	industrial purposes outside the limits  or the extraterritorial
	jurisdiction of the city.  The permit must authorize the production
	of a cumulative volume of groundwater that is equal to the maximum
	historic use as proven by the person seeking the permit.
	Sec. 8872.109.  WELL REGISTRATION. A permit issued under
	this chapter authorizing the production of groundwater from the
	aquifer must also authorize the drilling and operation of a well or
	wells in the aquifer, and must require the permit holder to:
	(1)  register each well with the district; and
	(2)  file a copy of the well driller's log with the
	district on completion of each well.
	Sec. 8872.110.  PROPERTY RIGHTS. (a) A permit issued by the
	district for the drilling, operation, or production of a well is
	appurtenant to the real property on which the well is located.
	Ownership of the groundwater, or the right to use and produce the
	groundwater authorized by the permit, may be sold, leased,
	assigned, or otherwise transferred by the owner, provided that the
	rights granted by the permit to drill a well and to produce
	groundwater are exercised on the real property described in the
	permit based on the actual production authorized by the permit.
	(b)  Except as provided by this chapter, groundwater
	produced as authorized by a permit, once captured at the wellhead,
	may be beneficially used for any lawful purpose at any location,
	whether on or off the real property to which the permit is attached,
	provided that any beneficial use outside the boundaries of the
	district is authorized by a transport permit issued by the
	district.
	Sec. 8872.111.  REDUCTION AND CURTAILMENT. (a) The board by
	rule may provide for the reduction and curtailment of the
	production of groundwater from a well permitted under this chapter
	to protect spring flow and base flow and reduce drawdown in
	accordance with Sections 8872.103(a)(4) and (5).
	(b)  To implement a reduction or curtailment, the district
	may, to the extent not otherwise authorized by Section 36.101(a),
	Water Code, limit groundwater production as provided by district
	rules.
	(c)  Rules adopted by the board requiring a reduction or
	curtailment of the production of groundwater must be applied on a
	proportional, uniform, and nondiscriminatory basis to all
	permitted production, unless the condition requiring reduction or
	curtailment is limited to a management zone created under Section
	8872.112.
	Sec. 8872.112.  MANAGEMENT ZONES.  (a)  If the district
	determines based on scientific data received by the district in a
	meeting held for that purpose that conditions in or use of an
	aquifer differ substantially between hydrogeological areas of the
	district, the district may establish management zones to better
	manage the groundwater resources and adopt different rules to
	regulate production from the management zones based on acreage,
	tract size, or the service area of a public water supplier. In
	creating management zones, the district may consider:
	(1)  each aquifer, subdivision of an aquifer, or
	geologic strata located wholly or partly within the district; or
	(2)  each geographic area overlying an aquifer or
	subdivision of an aquifer located wholly or partly within the
	district.
	(b)  The district must regulate the production of
	groundwater in a management zone on a proportional, uniform, and
	nondiscriminatory basis.
	Sec. 8872.113.  PERMIT RENEWAL.  (a)  Except as provided by
	Subsection (b), the district shall without a hearing renew or
	approve an application to renew an operating permit before the date
	on which the permit expires, provided that:
	(1)  the application, if required by the district, is
	submitted in a timely manner and accompanied by any required fees in
	accordance with district rules; and
	(2)  the permit holder is not requesting a change
	related to the renewal that would require a permit amendment under
	district rules.
	(b)  The district is not required to renew a permit under
	this section if the applicant:
	(1)  is delinquent in paying a fee required by the
	district;
	(2)  is subject to a pending enforcement action for a
	substantive violation of a district permit, order, or rule that has
	not been settled by agreement with the district or a final
	adjudication; or
	(3)  has not paid a civil penalty or has otherwise
	failed to comply with an order resulting from a final adjudication
	of a violation of a district permit, order, or rule.
	(c)  If the district is not required to renew a permit under
	Subsection (b)(2), the permit remains in effect until the final
	settlement or adjudication on the matter of the substantive
	violation.
	Sec. 8872.114.  LIMITATION ON WELL PERMIT REQUIREMENTS. (a)
	The district may not require a person to install a meter or obtain a
	permit from the district for:
	(1)  a well drilled after January 1, 2017, and used to
	produce groundwater solely inside the district for domestic use or
	for another exempt purpose on a tract of land not larger than 10
	acres and that produces not more than 30,000 gallons of groundwater
	a day, notwithstanding the production capability of the well; or
	(2)  a well drilled after January 1, 2017, and used to
	produce groundwater solely inside the district for domestic use or
	for another exempt purpose on a tract of land larger than 10 acres
	and that produces not more than 72,000 gallons of groundwater a day,
	notwithstanding the production capability of the well.
	(b)  An owner of a well described by this section shall
	register the well with the district.
	(c)  The district may not require a permit or a permit
	amendment for the maintenance or repair of a well that is not exempt
	from permitting under this chapter or Chapter 36, Water Code, if the
	maintenance or repair does not make the well capable of producing an
	amount of groundwater that is greater than the production amounts
	provided by the well's permit.
	(d)  Nothing in Subsection (a) prevents the applicability in
	the district of Section 36.113(a), Water Code.
	(e)  The owner of an existing well is exempt from the
	district's production permit requirements provided that the
	groundwater produced is for domestic use.
	(f)  The owner of a well is exempt from the district's permit
	requirements provided that any groundwater produced is for
	agricultural use.
	Sec. 8872.115.  PROHIBITION ON DISTRICT PURCHASE, SALE,
	TRANSPORT, OR DISTRIBUTION OF WATER. The district may not
	purchase, sell, transport, or distribute surface water or
	groundwater for any purpose.
	Sec. 8872.116.  RIGHT TO ENTER LAND. Section 36.123, Water
	Code, which authorizes a district's employees or agents to go on and
	inspect the property of a landowner, applies to the district
	provided that:
	(1)  access is subject to written notice to the
	landowner; and
	(2)  the district's employees and agents are prohibited
	from carrying firearms on the landowner's property.
	Sec. 8872.117.  WATER CONSERVATION INITIATIVE.  The district
	may create a water conservation initiative as provided by Section
	11.32, Tax Code.
	Sec. 8872.118.  REGIONAL GROUNDWATER PLANNING. (a) The
	district shall obtain or develop groundwater models for use in
	planning and management of the aquifer and to assist the district in
	the district's role as a member of the groundwater management area
	in which the district is located.
	(b)  The district, to the extent possible and through the
	designated representative for the groundwater management area in
	which the district is located, shall diligently pursue an increase
	in the managed available groundwater and an improvement in the
	desired future conditions for the aquifer as compared to those
	indicators for the aquifer on January 1, 2017.
	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
	Sec. 8872.151.  LIMITATION ON TAXES. The district may not
	impose ad valorem taxes at a rate that exceeds five cents on each
	$100 valuation of taxable property in the district.
	Sec. 8872.152.  APPLICABILITY OF CERTAIN TAX PROVISIONS.
	(a)  Sections 26.04, 26.05, 26.06, and 26.07, Tax Code, do not apply
	to a tax imposed by the district.
	(b)  Section 49.236, Water Code, as added by Chapter 248
	(H.B. 1541), Acts of the 78th Legislature, Regular Session, 2003,
	applies to the district.
	Sec. 8872.153. FEES.  (a)  The board by rule may impose
	uniform, reasonable, equitable, and nondiscriminatory annual
	production fees on the amount of permitted water actually produced
	from each well.
	(b)  A production fee must be consistent with Section 36.205,
	Water Code, and may be based on:
	(1)  the size of column pipe used by the well; or
	(2)  the amount of water actually withdrawn from the
	well, or the amount authorized or anticipated to be withdrawn.
	(c)  The district may assess a uniform and nondiscriminatory
	export fee consistent with Section 36.122, Water Code, on
	groundwater that is produced from a well inside the district and
	transferred outside the district.
	(d)  The district may set fees by rule or resolution relating
	to administrative acts of the district, including filing
	applications, reviewing and processing permits, conducting permit
	hearings, providing public notice, and paying costs of legal fees,
	expert fees, and hearing facility rental fees.  The district may not
	assess a fee in an amount greater than $250 for processing permits.
	SECTION 2.  (a)  The legal notice of the intention to
	introduce this Act, setting forth the general substance of this
	Act, has been published as provided by law, and the notice and a
	copy of this Act have been furnished to all persons, agencies,
	officials, or entities to which they are required to be furnished
	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
	Government Code.
	(b)  The governor, one of the required recipients, has
	submitted the notice and Act to the Texas Commission on
	Environmental Quality.
	(c)  The Texas Commission on Environmental Quality has filed
	its recommendations relating to this Act with the governor, the
	lieutenant governor, and the speaker of the house of
	representatives within the required time.
	(d)  All requirements of the constitution and laws of this
	state and the rules and procedures of the legislature with respect
	to the notice, introduction, and passage of this Act are fulfilled
	and accomplished.
	SECTION 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2017.