By: King of Uvalde H.B. No. 4743 A BILL TO BE ENTITLED AN ACT relating to the creation of the Uvalde Water Trust. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. SHORT TITLE. This Act may be cited as the Uvalde Water Trust Act. SECTION 2. CREATION OF UVALDE WATER TRUST. The Uvalde Water Trust is hereby created pursuant to Art. XVI, Sec. 59, Texas Constitution, for the purpose of protecting the groundwater and the surface water supplies of Uvalde County, encouraging conservation, and ensuring that water rights are available for future use in the county to support growth and economic development. The Uvalde Water Trust is a conservation and reclamation district and has all the functions, powers, authority, rights and duties as necessary to accomplish the purposes for which the trust is created and as authorized by Art. XVI, Sec. 59, Texas Constitution. SECTION 3. BOUNDARIES. The boundaries of the Uvalde Water Trust is the territory contained within Uvalde County. SECTION 4. FINDING OF BENEFIT. All land, water, and other property included within the boundaries of the trust will be benefited by the creation of the trust. SECTION 5. PURPOSE. The purpose of the Uvalde Water Trust is to facilitate a water market and to provide adequate water supplies for use within the county. The Trust may acquire, receive, hold, lease, and sell water rights and engage in any other transactions and may develop policies necessary to promote conservation and availability of water in the county. SECTION 6. POWERS OF TRUST. The powers of the Uvalde Water Trust include but are not limited to: (a) acquiring and holding water rights by purchase, lease, assignment, bequeath, gift, pledge, trust, or any other mechanism; (b) selling, leasing, or otherwise transferring an interest in water rights for economic development projects or other uses of water within the county; (c) holding water rights for conservation purposes, fish and wildlife habitat protection, water quality, aquifer management, for the protection of instream flows, or similar purposes; (d) appraising water rights or otherwise establish the value of the water right; (e) applying for and receiving grants, low-interest loans, or other public or private financing mechanisms for funding the acquisition of water rights; (f) receiving funds from any source and in any form, such as a gift, grant, loan, transfer, or bequest, to carry out the purposes of the Trust; (g) entering into contracts; (h) assessing a transaction fee to cover the Trust's administrative costs related to individual transactions; (i) engaging in such other actions as necessary to facilitate water transactions; (j) keeping such books and records as necessary to account for the activities of the Trust; and (k) developing, establishing and implementing policies necessary to carry out the purposes of the Trust. SECTION 7. ENROLLMENT IN EDWARDS AQUIFER HABITAT CONSERVATION PROGRAM. Edwards Aquifer water rights held by the Trust may be enrolled in a Habitat Conservation Program implemented by the Edwards Aquifer Authority and the Trust may receive any funding associated with those programs. SECTION 8. PURCHASE OPTION. The Trust has the option to acquire a water right available on the open market in Uvalde County by matching the highest offer made for that right. The holder of the right shall notify the Trust of such offer not less than 10 days prior to the proposed closing date for the transaction. SECTION 9. GOVERNANCE. (a) The Trust would be governed by a Board that would consist of the following persons who may serve two consecutive, two-year staggered terms, the staggered terms to be determined at the initial meeting of the Board: 1) One member of the City Council of each of Cities of Uvalde and Sabinal, appointed by the Mayor of each respective City; 2) One member of the Knippa Independent School District, to be appointed by the Chair of the Board of Trustees of the Knippa Independent School District; 3) One member of the County Commissioners Court of Uvalde County appointed by the County Judge; 4) One member of the Uvalde County Underground Water Conservation District appointed by the Chair of the Uvalde County Underground Water Conservation District; 5) The County Judge; and 6) The Mayor of the City of Uvalde; (b) The Trust is subject to Chapters 551 and 552, Government Code. SECTION 10. STAFF. The General Manager of the Uvalde County Underground Water Conservation District shall act as an ex officio member of the Board and as the General Manager of the Trust. The General Manager shall hire such staff and consultants as necessary to carry out the functions and responsibilities of the Trust. SECTION 11. REVIEW AND DISSOLUTION. The General Manager shall submit a report to the Board on the fifth anniversary of the effective date of the Trust, and every five years thereafter, summarizing the effectiveness of the Trust in accomplishing its purposes and goals, including the number and types of water transactions entered into by the Trust, the costs associated with those transactions, the price paid by the Trust for the water rights acquired, the amount of revenues, grants, loans or other monies held by the Trust, cash balances, and other information that would inform the Board as to the effectiveness of the Trust. The Trust shall continue in existence unless the Board finds that the Trust is no longer effectively accomplishing its purposes and goals and votes, by a two-thirds majority, to dissolve the Trust. SECTION 12. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS. (a) The proper and legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished by the constitution and other laws of this state, including the governor, who has submitted the notice and act to the Texas Commission on Environmental Quality. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished. SECTION 13. EFFECTIVE DATE. This Act takes effect September 1, 2019.