The bill, H.B. No. 3467, mandates that sellers of real property containing or adjacent to state water must provide purchasers with a written notice regarding the process for obtaining a permit from the Texas Commission on Environmental Quality (TCEQ) for the appropriation of state water. This requirement is established by adding Section 5.0111 to the Property Code, which specifies that the notice must conform to the standard notice adopted by the TCEQ under Section 11.121 of the Water Code. Additionally, Section 11.121 is amended to include a provision that the TCEQ must adopt a standard notice designed to inform purchasers about the requirements for obtaining a permit for the storage, taking, or diversion of state water.

The new provisions will apply only to sales or conveyances of property for which a binding contract is executed on or after January 1, 2026, ensuring that any contracts executed before this date will be governed by the existing law. The TCEQ is required to adopt the necessary notice by December 31, 2025, and the bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Water Code 11.121 (Water Code 11)