Bill Text: TX HB4530 | 2025-2026 | 89th Legislature | Enrolled

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Bill Title: Relating to water rights placed in the Texas Water Trust and the Texas Water Bank.

Sponsorship: Bipartisan Bill

Status: (Vetoed) 2025-06-22 - Vetoed by the Governor [HB4530 Detail]

Download: Texas-2025-HB4530-Enrolled.html

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H.B. No. 4530

AN ACT
relating to water rights placed in the Texas Water Trust and the
Texas Water Bank.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 12.028(b) and (c), Parks and Wildlife
Code, are amended to read as follows:
(b) Consistent with Section 11.0235(b), Water Code, and the
department's duties and responsibilities, the department shall
encourage and facilitate the dedication of surface water rights in
the Texas Water Trust through lease, donation, purchase, or other
means of voluntary transfer for environmental needs, including for
the purpose of maintaining or improving:
(1) instream flows;
(2) water quality;
(3) fish and wildlife habitat; and
(4) bay and estuary inflows.
(c) The department may manage surface water rights in the
Texas Water Trust in a manner that is consistent with:
(1) the manner in which a holder of the rights may
manage the rights;
(2) the dedication of the rights, including the
dedication's terms and conditions;
(3) Sections 11.0237, 11.027, and 11.122, Water Code;
and
(4) maximizing environmental benefits.
SECTION 2. Section 15.703(a), Water Code, is amended to
read as follows:
(a) The board may take all actions necessary to operate the
water bank and to facilitate the transfer of water rights from the
water bank for future beneficial use including but not limited to:
(1) negotiating a sale price and terms acceptable to
the depositor and purchaser;
(2) maintaining a registry of water bank deposits and
those water users in need of additional supplies;
(3) informing water users in need of additional supply
of water rights available in the bank;
(4) encouraging water right holders to implement water
conservation practices and deposit the right to use the conserved
water into the bank;
(5) establishing requirements for deposit of a water
right into the water bank including minimum terms for deposit;
(6) purchasing, holding, and transferring water or
water rights in its own name;
(7) establishing regional water banks;
(8) acting as a clearinghouse for water marketing
information including water availability, pricing of water
transactions, environmental considerations, and potential buyers
and sellers of water rights;
(9) preparing and publishing a manual on structuring
water transactions;
(10) accepting and holding donations of water rights
to meet conservation needs or environmental needs, including
instream flow, water quality, fish and wildlife habitat, or bay and
estuary inflow needs;
(11) entering into contracts with persons to pay for
feasibility studies or the preparation of plans and specifications
relating to water conservation efforts or to estimate the amount of
water that would be saved through conservation efforts; and
(12) other actions to facilitate water transactions.
SECTION 3. Section 15.7031(a), Water Code, is amended to
read as follows:
(a) The Texas Water Trust is established within the water
bank to hold water rights dedicated to conservation needs or
environmental needs, including instream flow [flows], water
quality, fish and wildlife habitat, or bay and estuary inflow needs
[inflows].
SECTION 4. Section 15.7031, Water Code, is amended by
amending Subsections (c) and (e) and adding Subsection (c-1) to
read as follows:
(c) The dedication of any surface water rights placed in
trust must be reviewed and approved by the commission, in
consultation with the board and the Parks and Wildlife Department.
In addition, the Department of Agriculture may provide input to the
commission, as appropriate, during the review and approval process
for the dedication of surface water rights.
(c-1) The dedication of any groundwater rights placed in
trust must be reviewed and approved by the board. The board must
provide notice of the dedication to any district or authority that:
(1) was created under Section 52, Article III, or
Section 59, Article XVI, Texas Constitution; and
(2) has the authority to regulate the spacing of or
production from water wells located in the aquifer, subdivision of
the aquifer, or geologic stratum in which the groundwater that is
the subject of the groundwater rights is located.
(e) The Parks and Wildlife Department may manage surface
water rights in the trust:
(1) under a voluntary agreement with a rights holder;
and
(2) in the manner described by Section 12.028(c),
Parks and Wildlife Code.
SECTION 5. This Act takes effect September 1, 2025.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4530 was passed by the House on May 7,
2025, by the following vote: Yeas 109, Nays 27, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4530 on May 28, 2025, by the following vote: Yeas 90, Nays 42,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4530 was passed by the Senate, with
amendments, on May 26, 2025, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor