1-1     By:  Lucio                                             S.B. No. 991
 1-2           (In the Senate - Filed March 8, 1999; March 10, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     March 25, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; March 25, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 991                    By:  Lucio
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the operations of the Texas Water Bank.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subsection (a), Section 15.703, Water Code, is
1-13     amended to read as follows:
1-14           (a)  The board may take all actions necessary to operate the
1-15     water bank and to facilitate the transfer of water rights from the
1-16     water bank for future beneficial use including but not limited to:
1-17                 (1)  negotiating a sale price and terms acceptable to
1-18     the depositor and purchaser;
1-19                 (2)  maintaining a registry of water bank deposits and
1-20     those water users in need of additional supplies;
1-21                 (3)  informing water users in need of additional supply
1-22     of water rights available in the bank;
1-23                 (4)  encouraging water right holders to implement water
1-24     conservation practices and deposit the right to use the conserved
1-25     water into the bank;
1-26                 (5)  establishing requirements for deposit of a water
1-27     right into the water bank including minimum terms for deposit;
1-28                 (6)  purchasing, holding, and transferring water or
1-29     [selling] water rights in its own name;
1-30                 (7)  establishing regional water banks;
1-31                 (8)  acting as a clearinghouse for water marketing
1-32     information including water availability, pricing of water
1-33     transactions, environmental considerations, and potential buyers
1-34     and sellers of water rights;
1-35                 (9)  preparing and publishing a manual on structuring
1-36     water transactions;
1-37                 (10)  accepting and holding donations of water rights
1-38     to meet instream, water quality, fish and wildlife habitat, or bay
1-39     and estuary inflow needs; [and]
1-40                 (11)  entering into contracts with persons to pay for
1-41     feasibility studies or the preparation of plans and specifications
1-42     relating to water conservation efforts or to estimate the amount of
1-43     water that would be saved through conservation efforts; and
1-44                 (12)  other actions to facilitate water transactions.
1-45           SECTION 2.  Section 15.705, Water Code, is amended to read as
1-46     follows:
1-47           Sec. 15.705.  FEES.  (a)  The board may charge a transaction
1-48     fee per transfer not to exceed one percent of the value of the
1-49     water or water right received into or transferred from the water
1-50     bank [$500] to cover expenses of the board in operating the water
1-51     bank.  [Political subdivisions of the state are exempt from any
1-52     transfer fees established under this subsection.  The board by rule
1-53     shall establish fees in an amount necessary to pay for the ongoing
1-54     administration of the water bank and shall consider the duration,
1-55     type, and other aspects of the transfer.  The transaction fee shall
1-56     be paid by the depositor on either:]
1-57                 [(1)  a transfer of rights on deposit in the bank; or]
1-58                 [(2)  a transfer that occurs within one year of
1-59     withdrawal of any water right deposited into the bank.]
1-60           (b)  The board shall place the fees in the water bank account
1-61     of the water assistance fund where they shall be separately
1-62     accounted for and used, with interest, only for the administration
1-63     and operation of the water bank by the board.
1-64           SECTION 3.  Subsection (a), Section 15.707, Water Code, is
 2-1     amended to read as follows:
 2-2           (a)  The water bank account is created as a special account
 2-3     in the water assistance fund and is composed of:
 2-4                 (1)  money appropriated to the board for the program;
 2-5                 (2)  fees collected by the board under this subchapter;
 2-6                 (3)  money transferred to the account from the water
 2-7     assistance fund in Section 15.011(c) of this code;
 2-8                 (4)  grants, contracts, gifts, or other such funds that
 2-9     the board may receive relating to this subchapter; [and]
2-10                 (5)  money received from the transfer of water or water
2-11     rights held in the board's name in the bank; and
2-12                 (6)  interest earned on the investment of money in the
2-13     account.
2-14           SECTION 4.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended,
2-19     and that this Act take effect and be in force from and after its
2-20     passage, and it is so enacted.
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