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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of regional water banks by the Texas |
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Commission on Environmental Quality and the Texas Water Development |
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Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.177(b), Water Code, is amended to |
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read as follows: |
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(b) In determining what constitutes reasonable diligence or |
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a justified nonuse as used in Subsection (a)(2), the commission |
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shall give consideration to: |
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(1) whether sufficient water is available in the |
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source of supply to meet all or part of the appropriation during the |
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10-year period of nonuse; |
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(2) whether the nonuse is justified by the holder's |
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participation in the federal Conservation Reserve Program or a |
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similar governmental program as provided by Section 11.173(b)(1); |
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(3) whether the existing or proposed authorized |
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purpose and place of use are consistent with an approved regional |
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water plan as provided by Section 16.053; |
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(4) whether the permit, certified filing, or |
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certificate of adjudication has been deposited into the Texas Water |
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Bank as provided by Sections 15.7031 and 15.704 or a regional water |
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bank as provided by Sections 15.1004 and 15.1005 or whether it can |
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be shown that the water right or water available under the right is |
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currently being made available for purchase through private |
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marketing efforts; or |
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(5) whether the permit, certified filing, or |
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certificate of adjudication has been reserved to provide for |
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instream flows or bay and estuary inflows. |
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SECTION 2. Section 15.011(c), Water Code, is amended to |
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read as follows: |
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(c) The board may transfer money in the fund to: |
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(1) the water bank account to be used by the board for |
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administration and operation of the Texas Water Bank; or |
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(2) a regional water bank account to be used by the |
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commission for the administration and operation of a regional water |
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bank. |
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SECTION 3. Section 15.703(a), Water Code, is amended to |
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read as follows: |
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(a) The board may take all actions necessary to operate the |
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water bank and to facilitate the transfer of water rights from the |
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water bank for future beneficial use including but not limited to: |
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(1) negotiating a sale price and terms acceptable to |
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the depositor and purchaser; |
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(2) maintaining a registry of water bank deposits and |
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those water users in need of additional supplies; |
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(3) informing water users in need of additional supply |
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of water rights available in the bank; |
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(4) encouraging water right holders to implement water |
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conservation practices and deposit the right to use the conserved |
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water into the bank; |
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(5) establishing requirements for deposit of a water |
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right into the water bank including minimum terms for deposit; |
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(6) purchasing, holding, and transferring water or |
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water rights in its own name; |
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(7) [establishing regional water banks;
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[(8)] acting as a clearinghouse for water marketing |
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information including water availability, pricing of water |
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transactions, environmental considerations, and potential buyers |
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and sellers of water rights; |
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(8) [(9)] preparing and publishing a manual on |
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structuring water transactions; |
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(9) [(10)] accepting and holding donations of water |
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rights to meet instream, water quality, fish and wildlife habitat, |
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or bay and estuary inflow needs; |
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(10) [(11)] entering into contracts with persons to |
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pay for feasibility studies or the preparation of plans and |
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specifications relating to water conservation efforts or to |
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estimate the amount of water that would be saved through |
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conservation efforts; and |
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(11) [(12)] other actions to facilitate water |
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transactions. |
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SECTION 4. Chapter 15, Water Code, is amended by adding |
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Subchapter S to read as follows: |
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SUBCHAPTER S. REGIONAL WATER BANKS |
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Sec. 15.1001. DEFINITIONS. In this subchapter: |
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(1) "Deposit" means the placement of a water right or |
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the right to use water in the water bank for transfer. |
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(2) "Depositor" means a person who deposits or has on |
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deposit a water right in the water bank or trust. |
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(3) "Person" includes but is not limited to any |
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individual, corporation, organization, government, or governmental |
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subdivision or agency, including the board, business trust, estate, |
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trust, partnership, association, and any other legal entity. |
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(4) "Transfer" means the conveyance of a water right |
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or the right to use water under a water right in any of the following |
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manners: |
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(A) the conveyance of legal title to a water |
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right; or |
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(B) a contract or option contract to allow use of |
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a water right. |
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(5) "Trust" means a regional water trust. |
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(6) "Water bank" or "bank" means a regional water bank |
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established under this subchapter. |
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(7) "Water right" means a right acquired or authorized |
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under the laws of this state to impound, divert, or use state water, |
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underground water, or water from any source to the extent |
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authorized by law. |
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Sec. 15.1002. CREATION OF REGIONAL WATER BANKS. (a) The |
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commission, in consultation with the board, shall establish a |
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regional water bank for all or a portion of: |
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(1) the Colorado River Basin; |
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(2) the Brazos River Basin; |
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(3) the Trinity River Basin; and |
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(4) other river basins or regions, as the commission |
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considers necessary. |
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(b) The commission shall administer the water banks to |
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facilitate water transactions to provide sources of adequate water |
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supplies for use during times of drought or water shortage in each |
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of the various river basins or regions. |
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Sec. 15.1003. BANK OPERATION; RULES. (a) The commission |
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may take all actions necessary to operate a water bank and to |
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facilitate the transfer of water rights from a water bank for future |
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beneficial use including but not limited to: |
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(1) negotiating a sale price and terms acceptable to |
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the depositor and purchaser; |
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(2) maintaining a registry of water bank deposits and |
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those water users in need of additional supplies; |
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(3) informing water users in need of additional supply |
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of water rights available in a bank; |
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(4) encouraging water right holders to implement water |
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conservation practices and deposit the right to use the conserved |
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water into a bank; |
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(5) establishing requirements for deposit of a water |
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right into a water bank including minimum terms for deposit; |
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(6) purchasing, holding, and transferring water or |
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water rights in its own name; |
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(7) acting as a clearinghouse for water marketing |
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information including water availability, pricing of water |
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transactions, environmental considerations, and potential buyers |
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and sellers of water rights; |
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(8) preparing and publishing a manual on structuring |
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water transactions; |
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(9) accepting and holding donations of water rights to |
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meet instream, water quality, fish and wildlife habitat, or bay and |
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estuary inflow needs; |
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(10) entering into contracts with persons to pay for |
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feasibility studies or the preparation of plans and specifications |
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relating to water conservation efforts or to estimate the amount of |
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water that would be saved through conservation efforts; and |
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(11) other actions to facilitate water transactions. |
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(b) The commission may adopt rules necessary for |
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implementation of water banks. |
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(c) The commission may contract with any person to achieve |
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the purposes of this subchapter. |
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Sec. 15.1004. TEXAS WATER TRUST. (a) A regional water |
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trust is established within each water bank established under this |
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chapter to hold water rights dedicated to environmental needs, |
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including instream flows, water quality, fish and wildlife habitat, |
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or bay and estuary inflows. |
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(b) The commission, in consultation with the Parks and |
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Wildlife Department and the board, shall adopt rules governing the |
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process for holding and transferring water rights. |
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(c) The dedication of any water rights placed in trust must |
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be reviewed and approved by the commission, in consultation with |
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the board and the Parks and Wildlife Department. In addition, the |
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Department of Agriculture may provide input to the commission, as |
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appropriate, during the review and approval process for dedication |
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of water rights. |
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(d) Water rights may be held in a trust for a term specified |
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by contractual agreement or in perpetuity. |
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Sec. 15.1005. TRANSFERS AND CONDITIONS. (a) A water right |
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may be deposited in a water bank for an initial term of up to 10 |
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years, unless otherwise held in a trust as established under |
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Section 15.1004, during which time the water right is exempt from |
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cancellation by the commission under the terms of Subchapter E, |
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Chapter 11. A water right is exempt from cancellation under this |
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subsection only once even if it has been transferred or |
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redeposited. |
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(b) The commission may not bring a cancellation action under |
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Subchapter E, Chapter 11, for a 10-year period following commission |
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approval of any necessary actions relating to a water right which |
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has been transferred while on deposit in a water bank. |
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(c) A contract or option contract to allow use of a water |
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right under this subchapter: |
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(1) may include a requirement that the purchaser show |
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diligence in pursuing feasible and practicable alternative water |
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supplies; and |
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(2) does not vest any right in the purchaser beyond the |
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stated terms and conditions of the contract or option contract. |
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Sec. 15.1006. FEES. (a) The commission may charge a |
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transaction fee per transfer not to exceed one percent of the value |
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of the water or water right received into or transferred from a |
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water bank to cover expenses of the board in operating the water |
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bank. |
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(b) The board shall place the fees in the water bank account |
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of the water assistance fund where they shall be separately |
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accounted for and used, with interest, only for the administration |
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and operation of a water bank by the commission. |
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Sec. 15.1007. REPORTS. The commission and the board shall |
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provide ready access by the other agency through manual or computer |
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capabilities to all water rights permits, final water rights |
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decisions, applications, amendments, contracts, computerized |
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files, computer programs, and other information related to water |
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rights and to the operation of the water banks. The commission |
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shall provide the board with all notices of proposed water rights |
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actions. |
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Sec. 15.1008. REGIONAL WATER BANK ACCOUNT. (a) The water |
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bank account is created as a special account in the water assistance |
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fund and is composed of: |
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(1) money appropriated to the board or commission for |
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the program; |
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(2) fees collected by the board or commission under |
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this subchapter; |
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(3) money transferred to the account from the water |
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assistance fund in Section 15.011(c) of this code; |
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(4) grants, contracts, gifts, or other such funds that |
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the board or commission may receive relating to this subchapter; |
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(5) money received from the transfer of water or water |
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rights held in the commission's name in a bank; and |
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(6) interest earned on the investment of money in the |
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account. |
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(b) The money in the account may be used only for the |
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administration and operation of a water bank by the commission |
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under this subchapter. |
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Sec. 15.1009. OTHER TRANSFERS. This subchapter does not |
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prevent the sale or purchase of water or water rights by or through |
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persons or entities outside of a water bank to the extent allowed by |
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law. |
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SECTION 5. Not later than May 1, 2014, the Texas Commission |
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on Environmental Quality shall adopt rules necessary to implement |
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Subchapter S, Chapter 15, Water Code, as added by this Act. |
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SECTION 6. This Act takes effect September 1, 2013. |