H.B. No. 4530
 
 
 
 
AN ACT
  relating to water rights placed in the Texas Water Trust and the
  Texas Water Bank.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 12.028(b) and (c), Parks and Wildlife
  Code, are amended to read as follows:
         (b)  Consistent with Section 11.0235(b), Water Code, and the
  department's duties and responsibilities, the department shall
  encourage and facilitate the dedication of surface water rights in
  the Texas Water Trust through lease, donation, purchase, or other
  means of voluntary transfer for environmental needs, including for
  the purpose of maintaining or improving:
               (1)  instream flows;
               (2)  water quality;
               (3)  fish and wildlife habitat; and
               (4)  bay and estuary inflows.
         (c)  The department may manage surface water rights in the
  Texas Water Trust in a manner that is consistent with:
               (1)  the manner in which a holder of the rights may
  manage the rights;
               (2)  the dedication of the rights, including the
  dedication's terms and conditions;
               (3)  Sections 11.0237, 11.027, and 11.122, Water Code;
  and
               (4)  maximizing environmental benefits.
         SECTION 2.  Section 15.703(a), Water Code, is amended to
  read as follows:
         (a)  The board may take all actions necessary to operate the
  water bank and to facilitate the transfer of water rights from the
  water bank for future beneficial use including but not limited to:
               (1)  negotiating a sale price and terms acceptable to
  the depositor and purchaser;
               (2)  maintaining a registry of water bank deposits and
  those water users in need of additional supplies;
               (3)  informing water users in need of additional supply
  of water rights available in the bank;
               (4)  encouraging water right holders to implement water
  conservation practices and deposit the right to use the conserved
  water into the bank;
               (5)  establishing requirements for deposit of a water
  right into the water bank including minimum terms for deposit;
               (6)  purchasing, holding, and transferring water or
  water rights in its own name;
               (7)  establishing regional water banks;
               (8)  acting as a clearinghouse for water marketing
  information including water availability, pricing of water
  transactions, environmental considerations, and potential buyers
  and sellers of water rights;
               (9)  preparing and publishing a manual on structuring
  water transactions;
               (10)  accepting and holding donations of water rights
  to meet conservation needs or environmental needs, including
  instream flow, water quality, fish and wildlife habitat, or bay and
  estuary inflow needs;
               (11)  entering into contracts with persons to pay for
  feasibility studies or the preparation of plans and specifications
  relating to water conservation efforts or to estimate the amount of
  water that would be saved through conservation efforts; and
               (12)  other actions to facilitate water transactions.
         SECTION 3.  Section 15.7031(a), Water Code, is amended to
  read as follows:
         (a)  The Texas Water Trust is established within the water
  bank to hold water rights dedicated to conservation needs or
  environmental needs, including instream flow [flows], water
  quality, fish and wildlife habitat, or bay and estuary inflow needs
  [inflows].
         SECTION 4.  Section 15.7031, Water Code, is amended by
  amending Subsections (c) and (e) and adding Subsection (c-1) to
  read as follows:
         (c)  The dedication of any surface water rights placed in
  trust must be reviewed and approved by the commission, in
  consultation with the board and the Parks and Wildlife Department.
  In addition, the Department of Agriculture may provide input to the
  commission, as appropriate, during the review and approval process
  for the dedication of surface water rights.
         (c-1)  The dedication of any groundwater rights placed in
  trust must be reviewed and approved by the board. The board must
  provide notice of the dedication to any district or authority that:
               (1)  was created under Section 52, Article III, or
  Section 59, Article XVI, Texas Constitution; and 
               (2)  has the authority to regulate the spacing of or
  production from water wells located in the aquifer, subdivision of
  the aquifer, or geologic stratum in which the groundwater that is
  the subject of the groundwater rights is located.
         (e)  The Parks and Wildlife Department may manage surface
  water rights in the trust:
               (1)  under a voluntary agreement with a rights holder;
  and
               (2)  in the manner described by Section 12.028(c),
  Parks and Wildlife Code.
         SECTION 5.  This Act takes effect September 1, 2025.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4530 was passed by the House on May 7,
  2025, by the following vote:  Yeas 109, Nays 27, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4530 on May 28, 2025, by the following vote:  Yeas 90, Nays 42,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4530 was passed by the Senate, with
  amendments, on May 26, 2025, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor