By: Murr H.B. No. 3656
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relati
  ng to the transfer of certain permitted irrigation water
  rights related to a certain portion of the Edwards Aquifer.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.34, Chapter 626, Acts of the 73rd
  Legislature, Regular Session, 1993, is amended to read as follows:
         Sec. 1.34.  TRANSFER OF RIGHTS.  (a)  In this section:
               (1)  "Developed" means land that can no longer be used
  for agricultural purposes due to:
                     (B)  actual construction upon and physical
  alteration of historically irrigated land caused by the
  construction of roads, parking lots, driveways, foundations,
  structures, buildings, stormwater collection systems, public
  parks, athletic fields, or similar improvements; or
                     (B)  rezoning by an appropriate authority such
  that it can no longer be used for agricultural purposes and the
  owner of the land no longer seeks to designate the land as
  agricultural use in accordance with Chapter 23, Subchapter C of the
  Tax Code.
               (2)  "Historically irrigated land" means the lands
  irrigated during the historical period, as described by Section
  1.16, that provided the basis for the issuance of an initial regular
  permit for irrigation use and is identified as the place of use in
  the initial regular permit.
         (b)  Water withdrawn from the aquifer must be used within the
  boundaries of the authority.
         (c) [(b)]  The authority by rule may establish a procedure by
  which a person who installs water conservation equipment may sell
  the water conserved.
         (d) [(c)]  Except as otherwise provided by this section, a
  [A] permit holder may lease permitted water rights, but a holder of
  a permit for irrigation use may not lease more than 50 percent of
  the irrigation rights initially permitted. The user's remaining
  irrigation water rights must be used in accordance with the
  original permit and must pass with transfer of the irrigated land.
         (e)  Except as provided by Subsection (f), the owner of the
  irrigated land may sever the remaining water rights for use in
  irrigation if at least 75 percent of the historically irrigated is
  developed. Water rights used for irrigation tied to portions of
  land that cannot be developed due to location within a floodplain or
  are impractical to develop due to shape or topography may be
  included in the proportion of land considered developed. Water
  rights for use in irrigation severed under this subsection may
  change in use, so long as at least 25 percent of the use remains in
  the same county as the original use and consistent with authority
  rules. Rules adopted to implement this subsection may not expand
  the type of land considered developed.
         (f)  The authority may adopt rules to provide for a holder of
  an initial regular permit for use in irrigation to lease the full
  amount of the water rights for use in irrigation granted in the
  initial permit to another person for irrigating land located in the
  authority.
         SECTION 2.  The change in law made by this Act to Section
  1.34, Chapter 626, Acts of the 73rd Legislature, Regular Session,
  1993, applies only to a transfer, and the contracts or other
  transaction documents of any kind related thereto, including
  documents related to the extension of credit, hereinafter
  collectively referred to as "transfer", effective on or after the
  effective date of this Act. The change in law made by this Act to
  Section 1.34, Chapter 626, Acts of the 73rd Legislature, Regular
  Session, 1993, does not affect the validity of a transfer effective
  before the effective date of this Act. A transfer effective before
  the effective date of this Act is governed by the provisions of
  Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993,
  and the rules of the Edwards Aquifer Authority in effect at the time
  the transfer became effective. Transfers effective before the
  effective date of this Act, that have not been rescinded, and are
  not subject to pending litigation are hereby conclusively validated
  in all respects.
         SECTION 3.  This Act takes effect September 1, 2019.