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(b) Water withdrawn from the aquifer must be used within the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.