BILL ANALYSIS

H.B. 752

By: Longoria

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Several years ago the Texas Legislature passed legislation regarding the effect of subdivision of nonagricultural land on water rights applicable to certain water districts in certain South Texas counties. Interested parties contend that the purpose of such law is to address the water supply needs of urbanizing areas along the Rio Grande. Currently a municipal water supplier that serves certain land may petition an applicable district to convert the proportionate irrigation water right to the Rio Grande from irrigation use to municipal use for the use and benefit of the municipal water supplier. A municipal water supplier may contract to purchase the proportionate water rights at a capped price or contract to use water associated with the proportionate water rights for at least 40 years at a capped price. 

Interested parties note that when the legislation was enacted the La Joya Water Supply Corporation had the right as a municipal water supplier to take advantage of the water supply and water pricing provisions that the legislation offered. However, the parties contend that when the water supply corporation converted to the Agua Special Utility District a few years ago it no longer could make use of such provisions because it was not considered a municipal water supplier under such law even though the district's core business of supplying potable water to customers remained the same. H.B. 752 seeks to address this issue and benefit the customers of the Agua Special Utility District and developers within the area because it could give Agua Special Utility District the opportunity to buy or lease additional water at prices that are certain and in some cases may be less than the going market value of the water.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 752 amends the Water Code, in provisions relating to the effect of subdivision of nonagricultural land on water rights applicable to certain water districts, other than a drainage district, located wholly or partly in a county that borders the Gulf of Mexico and the United Mexican States or that is adjacent to such a county, to include in the definition of "municipal water supplier" a special utility district converted from a water supply corporation.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.