HBA-NMO C.S.H.B. 2575 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2575
By: Counts
Natural Resources
3/23/99
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Current law requires the Texas Water Development Board (board) to
administer the Texas Water Bank (water bank) to facilitate water
transactions to provide sources of adequate water supplies for use within
this state.   

As the population of Texas grows, municipal and industrial demand for water
will increase significantly.  For many municipalities and their associated
industries the most cost-effective means of meeting growing water needs may
be the purchase and conversion of water historically used for agricultural
irrigation.  However, stakeholders reliant upon the agricultural economy
may be hesitant to lose agricultural water resources to municipal and
industrial uses.  One way of converting water use from agricultural to
municipal and industrial use without decreasing the amount of water
available for agriculture is by improving the efficiency of agricultural
irrigation systems and transferring the conserved water to municipal and
industrial use.  The board and water bank could help facilitate this
process. 

C.S.H.B. 2575 authorizes the board to transfer water or water rights in its
own name and enter into contracts for feasibility studies regarding water
conservation efforts.  This bill also changes the transfer fee charged by
the board from a flat rate of $500 to one percent of the value of the water
or water right received into or transferred from the water bank, and
requires the board to place such fees in the water bank account of the
water assistance fund.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 15.703(a), Water Code, to include in those
actions which the Texas Water Development Board (board) is authorized to
take to operate the water bank and to facilitate the transfer of water
rights from the water bank for future beneficial use: 

_the transfer water or water rights in its own name, rather than sale of
water rights in its own name, and 

_the 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. 

SECTION 2.  Amends Section 15.705, Water Code, to authorize the board to
charge a transaction fee per transfer not to exceed one percent of the
value of the water or water right received into or transferred from the
water bank, rather than $500.  Deletes language referring to the exemption
of political subdivisions of this state from transfer fees, the
establishment of fees by the board, by rule, and the payment of transaction
fees.  Requires the board to place fees in the water bank account of the
water assistance fund. 

SECTION 3.  Amends Section 15.707(a), Water Code, to make conforming
changes. 
 
SECTION 4.Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original, in SECTION 1, by including in the
authorized actions of the Texas Water Development Board the entering into
contracts with persons to pay for feasibility studies or, rather than of,
the preparation of plans and specifications relating to water conservation
efforts.