By Counts H.B. No. 2873
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to creation and operation of a water bank and
1-3 establishment and collection of fees associated thereto.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 15, Texas Water Code, is amended by
1-6 adding the following as new Subchapter K:
1-7 Subchapter K. Texas Water Bank
1-8 Sec. 15.701. Definitions. In this subchapter:
1-9 (1) "Deposit" means the placement of a water right or the
1-10 right to use water in the water bank for transfer.
1-11 (2) "Depositor" means a person who deposits or has on
1-12 deposit a water right into the water bank.
1-13 (3) "Person" includes but is not limited to any individual,
1-14 corporation, organization, government or governmental subdivision
1-15 or agency, including the board, business trust, estate, trust,
1-16 partnership, association and any other legal entity.
1-17 (4) "Transfer" means the conveyance of a water right or the
1-18 right to use water under a water right in any of the following
1-19 manners:
1-20 (A) the conveyance of legal title to a water right; or
1-21 (B) a contract or option contract to allow use of a
1-22 water right.
1-23 (5) "Water bank" or "bank" means the Texas Water Bank.
2-1 (6) "Water right" means a right acquired or authorized under
2-2 the laws of this state to impound, divert, or use state water,
2-3 underground water, or water from any source to the extent
2-4 authorized by law.
2-5 Sec. 15.702. Creation of Bank. The Texas Water Development
2-6 Board shall establish the Texas Water Bank. The Board shall
2-7 administer the water bank to facilitate the transfer of water from
2-8 all sources as necessary to provide sources of adequate water
2-9 supplies for use within the State of Texas.
2-10 Sec. 15.703. Operation of the Bank, Rules. (a) The board
2-11 may take all actions necessary to operate the water bank and to
2-12 facilitate the transfer of water rights from the water bank for
2-13 future beneficial use including, but not limited to:
2-14 (1) negotiating a sale price and terms acceptable to the
2-15 depositor and purchaser;
2-16 (2) maintaining a registry of water bank deposits and those
2-17 water users in need of additional supplies;
2-18 (3) informing water users in need of additional supply of
2-19 water rights available in the bank;
2-20 (4) encouraging water right holders to implement water
2-21 conservation practices and deposit the right to use the conserved
2-22 water into the bank;
2-23 (5) establishing requirements for deposit of a water right
2-24 into the water bank including minimum terms for deposit;
2-25 (6) purchasing, holding and selling water rights in its own
3-1 name;
3-2 (7) establishing regional water banks; and
3-3 (8) other actions to facilitate transfers.
3-4 (b) The board may adopt rules necessary for implementation
3-5 of the Texas Water Bank.
3-6 (c) The board may contract with any person to achieve the
3-7 purposes of this subchapter.
3-8 Sec. 15.704. Transfers and Conditions. (a) A water right
3-9 may be deposited in the water bank for an initial term of up to 10
3-10 years, during which time the water right is exempt from
3-11 cancellation by the commission under the terms of Subchapter E,
3-12 Chapter 11 of this code. A water right is exempt from cancellation
3-13 under this subsection only once even if it has been transferred or
3-14 redeposited.
3-15 (b) The commission may not bring a cancellation action under
3-16 Subchapter E, Chapter 11, Texas Water Code, for a 10-year period
3-17 following commission approval of any necessary actions relating to
3-18 a water right which has been transferred while on deposit in the
3-19 water bank.
3-20 Sec. 15.705. Fees. The board may charge a transaction fee
3-21 per transfer not to exceed $10 per acre-foot of annual water
3-22 diversion right to cover expenses of the board in operating the
3-23 water bank. The board by rule shall establish fees in an amount
3-24 necessary to pay for the onging administration of the water bank
3-25 and which shall consider the duration, type, and other aspects of
4-1 the transfer. The transaction fee shall be paid by the depositor
4-2 upon either: (1) a transfer of rights on deposit in the bank, or
4-3 (2) a transfer that occurs within one year of withdrawal of any
4-4 water right deposited into the bank. The board shall place the
4-5 fees into the Water Assistance Fund where it shall be separately
4-6 accounted for and used, with interest, only for the administration
4-7 and operation of the water bank by the board.
4-8 Sec. 15.706. Reports. The commission and the board shall
4-9 provide ready access by the other agency through manual or computer
4-10 capabilities, to all water rights permits, final water right
4-11 decisions, applications, amendments, contracts, computerized files,
4-12 computer programs, and other information related to water rights
4-13 and to the operation of the water bank. The commission shall
4-14 provide the board with all notices of proposed water rights
4-15 actions.
4-16 Sec. 15.707. Water Bank Account. (a) The water bank
4-17 account is created as a special account in the water assistance
4-18 fund and is composed of:
4-19 (1) money appropriated to the board for the program;
4-20 (2) fees collected by the board under this subchapter;
4-21 (3) money transferred to the account from the water
4-22 assistance fund in Section 15.011(c) of this code;
4-23 (4) grants, contracts, gifts or other such funds that the
4-24 board may receive relating to this subchapter;
4-25 (5) interest earned on the investment of money in the
5-1 account.
5-2 (b) The money in the account may be used only for the
5-3 administration and operation of the water bank by the board under
5-4 this subchapter.
5-5 Sec. 15.708. Nothing in this subchapter shall prevent the
5-6 sale or purchase of water or water rights by or through persons or
5-7 entities outside of the water bank.
5-8 SECTION 2. The Texas Water Development Board shall report to
5-9 the Governor and members of the legislature concerning the
5-10 implementation of the Texas Water Bank in December, 1994. The
5-11 board shall coordinate with the Texas Water Commission and Texas
5-12 Parks and Wildlife Department in preparing this report. The report
5-13 shall identify any changes needed to the program authorized in this
5-14 act. The report shall identify ways to assist in providing flows
5-15 to meet instream, water quality, fish and wildlife habitat and bay
5-16 and estuary inflow needs through the water rights marketing and
5-17 transfer process. After this first report, this topic shall be
5-18 addressed in the biennial reports required in Section 6.156 of this
5-19 code.
5-20 SECTION 3. Section 15.011, Water Code, is amended to add
5-21 subsection (c) to read as follows:
5-22 Sec. 15.011. Water Assistance Fund. (c) The board may
5-23 transfer money in the fund to the water bank account to be used by
5-24 the board for administration and operation of the Texas Water Bank.
5-25 SECTION 4. Section 12.112, Water Code, is amended to read as
6-1 follows:
6-2 Sec. 12.112. Fees: Exemptions. (a) The commission, the
6-3 board, and the Parks and Wildlife Commission are exempted from
6-4 payment of any filing, recording, or use fees required by this
6-5 code.
6-6 (b) The board is exempt from payment of any other fees
6-7 required by this code or any other statute relating to applications
6-8 for water rights or amendments thereto, or relating to water
6-9 resources administration to the extent the board has not contracted
6-10 for the sale of water under a water right upon which such fees are
6-11 based.
6-12 SECTION 5. EMERGENCY. The importance of this legislation
6-13 and the crowded condition of the calendars in both houses create an
6-14 emergency and an imperative public necessity that the
6-15 constitutional rule requiring bills to be read on three several
6-16 days in each house be suspended.