S.B. No. 1030
AN ACT
1-1 relating to creation and operation of a water bank and the
1-2 establishment and collection of associated fees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 15, Water Code, is amended by adding
1-5 Subchapter K to read as follows:
1-6 SUBCHAPTER K. TEXAS WATER BANK
1-7 Sec. 15.701. DEFINITIONS. In this subchapter:
1-8 (1) "Deposit" means the placement of a water right or
1-9 the right to use water in the water bank for transfer.
1-10 (2) "Depositor" means a person who deposits or has on
1-11 deposit a water right in the water bank.
1-12 (3) "Person" includes but is not limited to any
1-13 individual, corporation, organization, government, or governmental
1-14 subdivision or agency, including the board, business trust, estate,
1-15 trust, partnership, association, and any other legal entity.
1-16 (4) "Transfer" means the conveyance of a water right
1-17 or the right to use water under a water right in any of the
1-18 following manners:
1-19 (A) the conveyance of legal title to a water
1-20 right; or
1-21 (B) a contract or option contract to allow use
1-22 of a 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
2-2 under the laws of this state to impound, divert, or use state
2-3 water, 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
2-15 the depositor and purchaser;
2-16 (2) maintaining a registry of water bank deposits and
2-17 those water users in need of additional supplies;
2-18 (3) informing water users in need of additional supply
2-19 of 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
2-24 right into the water bank including minimum terms for deposit;
2-25 (6) purchasing, holding, and selling water rights in
3-1 its own 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) Up to 50
3-9 percent of a water right may be deposited in the water bank for an
3-10 initial term of up to 10 years, during which time the water right
3-11 is exempt from cancellation by the commission under the terms of
3-12 Subchapter E of Chapter 11 of this code. A water right is exempt
3-13 from cancellation under this subsection only once even if it has
3-14 been transferred or redeposited.
3-15 (b) The commission may not bring a cancellation action under
3-16 Subchapter E of Chapter 11 of this 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. (a) The board may charge a transaction
3-21 fee per transfer not to exceed $500 to cover expenses of the board
3-22 in operating the water bank. Political subdivisions of the state
3-23 are exempt from any transfer fees established under this
3-24 subsection. The board by rule shall establish fees in an amount
3-25 necessary to pay for the ongoing administration of the water bank
4-1 and shall consider the duration, type, and other aspects of the
4-2 transfer. The transaction fee shall be paid by the depositor on
4-3 either:
4-4 (1) a transfer of rights on deposit in the bank; or
4-5 (2) a transfer that occurs within one year of
4-6 withdrawal of any water right deposited into the bank.
4-7 (b) The board shall place the fees in the water assistance
4-8 fund where they shall be separately accounted for and used, with
4-9 interest, only for the administration and operation of the water
4-10 bank by the board.
4-11 Sec. 15.706. REPORTS. The commission and the board shall
4-12 provide ready access by the other agency through manual or computer
4-13 capabilities to all water rights permits, final water rights
4-14 decisions, applications, amendments, contracts, computerized files,
4-15 computer programs, and other information related to water rights
4-16 and to the operation of the water bank. The commission shall
4-17 provide the board with all notices of proposed water rights
4-18 actions.
4-19 Sec. 15.707. WATER BANK ACCOUNT. (a) The water bank
4-20 account is created as a special account in the water assistance
4-21 fund and is composed of:
4-22 (1) money appropriated to the board for the program;
4-23 (2) fees collected by the board under this subchapter;
4-24 (3) money transferred to the account from the water
4-25 assistance fund in Section 15.011(c) of this code;
5-1 (4) grants, contracts, gifts, or other such funds that
5-2 the board may receive relating to this subchapter; and
5-3 (5) interest earned on the investment of money in the
5-4 account.
5-5 (b) The money in the account may be used only for the
5-6 administration and operation of the water bank by the board under
5-7 this subchapter.
5-8 Sec. 15.708. OTHER TRANSFERS. Nothing in this subchapter
5-9 shall prevent the sale or purchase of water or water rights by or
5-10 through persons or entities outside of the water bank or the
5-11 creation and operation of water banks by other persons to the
5-12 extent allowed by law.
5-13 SECTION 2. The Texas Water Development Board shall report to
5-14 the governor and members of the legislature concerning the
5-15 implementation of the Texas Water Bank in December, 1994. The
5-16 board shall coordinate with the Texas Water Commission and the
5-17 Parks and Wildlife Department in preparing this report. The report
5-18 shall identify any changes needed in the program authorized by this
5-19 Act. The report shall identify ways to assist in providing flows
5-20 to meet instream, water quality, fish and wildlife habitat, and bay
5-21 and estuary inflow needs through the water rights marketing and
5-22 transfer process. After this first report, this topic shall be
5-23 addressed in the biennial reports required by Section 6.156, Water
5-24 Code.
5-25 SECTION 3. Section 15.011, Water Code, is amended by adding
6-1 Subsection (c) to read as follows:
6-2 (c) The board may transfer money in the fund to the water
6-3 bank account to be used by the board for administration and
6-4 operation of the Texas Water Bank.
6-5 SECTION 4. Section 12.112, Water Code, is amended to read as
6-6 follows:
6-7 Sec. 12.112. FEES: EXEMPTIONS. (a) The commission, the
6-8 board, and the Parks and Wildlife Commission are exempted from
6-9 payment of any filing, recording, or use fees required by this
6-10 code.
6-11 (b) The board is exempt from payment of any other fees
6-12 required by this code or any other statute relating to applications
6-13 for water rights or amendments thereto or relating to water
6-14 resources administration to the extent the board has not contracted
6-15 for the sale of water under a water right on which such fees are
6-16 based.
6-17 SECTION 5. The importance of this legislation and the
6-18 crowded condition of the calendars in both houses create an
6-19 emergency and an imperative public necessity that the
6-20 constitutional rule requiring bills to be read on three several
6-21 days in each house be suspended, and this rule is hereby suspended.