H.B. No. 3656
AN ACT
relating 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 land" means historically irrigated
land that has been physically altered by the installation of
utilities or construction of roads, parking lots, driveways,
foundations, structures, buildings, stormwater collection systems,
public parks, or athletic fields or by similar improvements.
(2) "Historically irrigated land" means land
irrigated during the historical period, as described by Section
1.16 of this Act, 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.
(3) "Land no longer practicable to farm" means
historically irrigated land:
(A) that has not been irrigated for more than
five years; and
(B) for which the owner of the land has submitted
to the authority documentation demonstrating that because of
development on land in close proximity to the historically
irrigated land, agricultural activities performed on the land,
including crop dusting or other applications of pesticides, have
the potential to compromise the health and safety of a farm operator
or of persons occupying or residing on property in close proximity
to the land.
(b) Water withdrawn from the aquifer must be used within the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) Except as otherwise provided by this section, a [(c) 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) Subject to approval by the authority, the owner of
historically irrigated land may sever all or a portion of the
remaining water rights for the historically irrigated land which
has become developed land in the same proportion as the proportion
of developed land and undeveloped land or for which the owner of the
historically irrigated land has demonstrated that all or a portion
of the land is land no longer practicable to farm. Water rights used
for irrigation tied to a portion of land that cannot be developed
because of its topography or its location in a floodplain may be
included in the proportion of land considered developed land.
Water rights for use in irrigation severed under this subsection
may change in purpose or place of use. Rules adopted to implement
this subsection may not expand the type of land considered
developed land or land considered land no longer practicable to
farm. The approval of a severance under this section is subject to
a contested case hearing in accordance with authority rules.
(f) The authority may adopt rules to provide for a holder of
an initial regular permit for use in irrigation to lease all or part
of the water rights for use in irrigation granted in the initial
permit to another person for irrigating land, including land not
described in the initial regular permit, located in the authority.
Rules adopted under this subsection may allow the holder of an
initial regular permit to use the water rights temporarily for
irrigation at a location other than the land described in the
initial regular permit.
SECTION 2. Rules adopted by the Edwards Aquifer Authority
before the effective date of this Act relating to the severance of
water rights from historically irrigated land and actions taken by
the authority under those rules are validated and confirmed in all
respects.
SECTION 3. 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 4. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3656 was passed by the House on May 3,
2019, by the following vote: Yeas 141, Nays 1, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3656 was passed by the Senate on May
21, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor