Relating to water rights placed in the Texas Water Trust and the Texas Water Bank, the official text

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