89R3267 JAM-D By: Goodwin H.B. No. 3467 A BILL TO BE ENTITLED AN ACT relating to the disclosure by a seller of certain real property to the purchaser of the property of information regarding the process for obtaining a permit from the Texas Commission on Environmental Quality for the storage, taking, or diversion of state water. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 5, Property Code, is amended by adding Section 5.0111 to read as follows: Sec. 5.0111. SELLER'S NOTICE REGARDING APPROPRIATION OF STATE WATER. A person who sells an interest in real property in this state that contains or is adjacent to state water shall give to the purchaser of the property a written notice that conforms to the standard notice adopted by the Texas Commission on Environmental Quality under Section 11.121, Water Code, relating to the appropriation of state water. SECTION 2. Section 11.121, Water Code, is amended to read as follows: Sec. 11.121. PERMIT REQUIRED; NOTICE TO CERTAIN PURCHASERS OF REAL PROPERTY. (a) Except as provided in Sections 11.1405, 11.142, 11.1421, 11.1422, and 18.003, no person may appropriate any state water or begin construction of any work designed for the storage, taking, or diversion of water without first obtaining a permit from the commission to make the appropriation. (b) The commission by rule shall adopt a standard notice for a purchaser of real property that contains or is adjacent to state water. The notice must be designed to inform a purchaser of: (1) the requirements of this section; and (2) the process by which a person may obtain from the commission a permit authorizing the storage, taking, or diversion of state water. SECTION 3. Section 5.0111, Property Code, as added by this Act, applies only to a sale or conveyance of property for which a binding contract is executed on or after January 1, 2026. A sale or conveyance for which a binding contract is executed before that date is governed by the law in effect on the date the contract is executed, and the former law is continued in effect for that purpose. SECTION 4. Not later than December 31, 2025, the Texas Commission on Environmental Quality shall adopt the notice required by Section 11.121, Water Code, as amended by this Act. SECTION 5. This Act takes effect September 1, 2025.