1-1 By: Armbrister S.B. No. 1030
1-2 (In the Senate - Filed March 12, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 May 11, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; May 11, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 1030 By: Armbrister
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to creation and operation of a water bank and the
1-24 establishment and collection of associated fees.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Chapter 15, Water Code, is amended by adding
1-27 Subchapter K to read as follows:
1-28 SUBCHAPTER K. TEXAS WATER BANK
1-29 Sec. 15.701. DEFINITIONS. In this subchapter:
1-30 (1) "Deposit" means the placement of a water right or
1-31 the right to use water in the water bank for transfer.
1-32 (2) "Depositor" means a person who deposits or has on
1-33 deposit a water right in the water bank.
1-34 (3) "Person" includes but is not limited to any
1-35 individual, corporation, organization, government, or governmental
1-36 subdivision or agency, including the board, business trust, estate,
1-37 trust, partnership, association, and any other legal entity.
1-38 (4) "Transfer" means the conveyance of a water right
1-39 or the right to use water under a water right in any of the
1-40 following manners:
1-41 (A) the conveyance of legal title to a water
1-42 right; or
1-43 (B) a contract or option contract to allow use
1-44 of a water right.
1-45 (5) "Water bank" or "bank" means the Texas Water Bank.
1-46 (6) "Water right" means a right acquired or authorized
1-47 under the laws of this state to impound, divert, or use state
1-48 water, underground water, or water from any source to the extent
1-49 authorized by law.
1-50 Sec. 15.702. CREATION OF BANK. The Texas Water Development
1-51 Board shall establish the Texas Water Bank. The board shall
1-52 administer the water bank to facilitate the transfer of water from
1-53 all sources as necessary to provide sources of adequate water
1-54 supplies for use within the State of Texas.
1-55 Sec. 15.703. OPERATION OF THE BANK, RULES. (a) The board
1-56 may take all actions necessary to operate the water bank and to
1-57 facilitate the transfer of water rights from the water bank for
1-58 future beneficial use including but not limited to:
1-59 (1) negotiating a sale price and terms acceptable to
1-60 the depositor and purchaser;
1-61 (2) maintaining a registry of water bank deposits and
1-62 those water users in need of additional supplies;
1-63 (3) informing water users in need of additional supply
1-64 of water rights available in the bank;
1-65 (4) encouraging water right holders to implement water
1-66 conservation practices and deposit the right to use the conserved
1-67 water into the bank;
1-68 (5) establishing requirements for deposit of a water
2-1 right into the water bank including minimum terms for deposit;
2-2 (6) purchasing, holding, and selling water rights in
2-3 its own name;
2-4 (7) establishing regional water banks; and
2-5 (8) other actions to facilitate transfers.
2-6 (b) The board may adopt rules necessary for implementation
2-7 of the Texas Water Bank.
2-8 (c) The board may contract with any person to achieve the
2-9 purposes of this subchapter.
2-10 Sec. 15.704. TRANSFERS AND CONDITIONS. (a) A water right
2-11 may be deposited in the water bank for an initial term of up to 10
2-12 years, during which time the water right is exempt from
2-13 cancellation by the commission under the terms of Subchapter E of
2-14 Chapter 11 of this code. A water right is exempt from cancellation
2-15 under this subsection only once even if it has been transferred or
2-16 redeposited.
2-17 (b) The commission may not bring a cancellation action under
2-18 Subchapter E of Chapter 11 of this code for a 10-year period
2-19 following commission approval of any necessary actions relating to
2-20 a water right which has been transferred while on deposit in the
2-21 water bank.
2-22 Sec. 15.705. FEES. (a) The board may charge a transaction
2-23 fee per transfer not to exceed $10 per acre-foot of annual water
2-24 diversion right to cover expenses of the board in operating the
2-25 water bank. The board by rule shall establish fees in an amount
2-26 necessary to pay for the ongoing administration of the water bank
2-27 and shall consider the duration, type, and other aspects of the
2-28 transfer. The transaction fee shall be paid by the depositor on
2-29 either:
2-30 (1) a transfer of rights on deposit in the bank; or
2-31 (2) a transfer that occurs within one year of
2-32 withdrawal of any water right deposited into the bank.
2-33 (b) The board shall place the fees in the water assistance
2-34 fund where they shall be separately accounted for and used, with
2-35 interest, only for the administration and operation of the water
2-36 bank by the board.
2-37 Sec. 15.706. REPORTS. The commission and the board shall
2-38 provide ready access by the other agency through manual or computer
2-39 capabilities to all water rights permits, final water rights
2-40 decisions, applications, amendments, contracts, computerized files,
2-41 computer programs, and other information related to water rights
2-42 and to the operation of the water bank. The commission shall
2-43 provide the board with all notices of proposed water rights
2-44 actions.
2-45 Sec. 15.707. WATER BANK ACCOUNT. (a) The water bank
2-46 account is created as a special account in the water assistance
2-47 fund and is composed of:
2-48 (1) money appropriated to the board for the program;
2-49 (2) fees collected by the board under this subchapter;
2-50 (3) money transferred to the account from the water
2-51 assistance fund in Section 15.011(c) of this code;
2-52 (4) grants, contracts, gifts, or other such funds that
2-53 the board may receive relating to this subchapter; and
2-54 (5) interest earned on the investment of money in the
2-55 account.
2-56 (b) The money in the account may be used only for the
2-57 administration and operation of the water bank by the board under
2-58 this subchapter.
2-59 Sec. 15.708. OTHER TRANSFERS. Nothing in this subchapter
2-60 shall prevent the sale or purchase of water or water rights by or
2-61 through persons or entities outside of the water bank or the
2-62 creation and operation of water banks by other persons to the
2-63 extent allowed by law.
2-64 SECTION 2. The Texas Water Development Board shall report to
2-65 the governor and members of the legislature concerning the
2-66 implementation of the Texas Water Bank in December, 1994. The
2-67 board shall coordinate with the Texas Water Commission and the
2-68 Parks and Wildlife Department in preparing this report. The report
2-69 shall identify any changes needed in the program authorized by this
2-70 Act. The report shall identify ways to assist in providing flows
3-1 to meet instream, water quality, fish and wildlife habitat, and bay
3-2 and estuary inflow needs through the water rights marketing and
3-3 transfer process. After this first report, this topic shall be
3-4 addressed in the biennial reports required by Section 6.156, Water
3-5 Code.
3-6 SECTION 3. Section 15.011, Water Code, is amended by adding
3-7 Subsection (c) to read as follows:
3-8 (c) The board may transfer money in the fund to the water
3-9 bank account to be used by the board for administration and
3-10 operation of the Texas Water Bank.
3-11 SECTION 4. Section 12.112, Water Code, is amended to read as
3-12 follows:
3-13 Sec. 12.112. FEES: EXEMPTIONS. (a) The commission, the
3-14 board, and the Parks and Wildlife Commission are exempted from
3-15 payment of any filing, recording, or use fees required by this
3-16 code.
3-17 (b) The board is exempt from payment of any other fees
3-18 required by this code or any other statute relating to applications
3-19 for water rights or amendments thereto or relating to water
3-20 resources administration to the extent the board has not contracted
3-21 for the sale of water under a water right on which such fees are
3-22 based.
3-23 SECTION 5. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
3-26 constitutional rule requiring bills to be read on three several
3-27 days in each house be suspended, and this rule is hereby suspended.
3-28 * * * * *
3-29 Austin,
3-30 Texas
3-31 May 11, 1993
3-32 Hon. Bob Bullock
3-33 President of the Senate
3-34 Sir:
3-35 We, your Committee on Natural Resources to which was referred S.B.
3-36 No. 1030, have had the same under consideration, and I am
3-37 instructed to report it back to the Senate with the recommendation
3-38 that it do not pass, but that the Committee Substitute adopted in
3-39 lieu thereof do pass and be printed.
3-40 Sims,
3-41 Chairman
3-42 * * * * *
3-43 WITNESSES
3-44 FOR AGAINST ON
3-45 ___________________________________________________________________
3-46 Name: Suzanne Schwartz x
3-47 Representing: Tx Water Development Board
3-48 City: Austin
3-49 -------------------------------------------------------------------
3-50 Name: Craig Pedersen x
3-51 Representing: Tx Water Development Board
3-52 City: Austin
3-53 -------------------------------------------------------------------
3-54 Name: James Kowis x
3-55 Representing: Tx Water Commission
3-56 City: Austin
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