Relating to the calculation of current market value of certain water rights by the Rio Grande Regional Water Authority.
The implementation of this bill is significant as it pertains to how water rights are valued in municipalities. This new calculation method aims to create a more standardized approach to determining water rights' worth, enhancing transparency and consistency in the market. The change is expected to affect transactions involving the sale of water rights by providing a clearer framework through which municipal suppliers may negotiate and assess the value of water they manage.
Senate Bill 1292 addresses the calculation of the current market value of certain water rights managed by the Rio Grande Regional Water Authority. This legislation seeks to amend the Water Code, specifically Section 49.509, to establish a new method for calculating market value based on the average price per acre-foot of municipal use water. The bill specifies that this calculation must consider the last three purchases involving municipal water suppliers and a minimum quantity of 100 acre-feet of water.
Senate Bill 1292 thus represents an effort to modernize and regulate water rights valuation in Texas. While it aims to promote a more equitable market for municipal use water rights, the discussions surrounding its provisions highlight ongoing debates about the balance between local water management and regulatory oversight. As the bill is set to take effect on September 1, 2009, its long-term impact on water resource management in the state will be watched closely.
A notable point of contention within the bill is the exclusion clause, which states that any sale between a municipal water supplier and a district under its jurisdiction will not be included in the calculation. This provision raises concerns among various stakeholders about its implications for fairness and inclusivity in valuation practices. Critics argue that this may lead to inequities and lack of accountability in the water rights market, as it could disproportionately favor certain entities over others.