BILL ANALYSIS
C.S.H.B. 546
By: Brimer (Harris)
Natural Resources
05-17-95
Senate Committee Report (Substituted)
BACKGROUND
Currently, there are no provisions in state law authorizing a
property owner to petition for property exclusion from a water or
reclamation district's tax roll if the district does not provide
services.
PURPOSE
As proposed, C.S.H.B. 546 authorizes a property owner in a water or
reclamation district to petition the district for exclusion of the
property from the district's property tax roll if the district does
not provide services.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is granted
to the Texas Natural Resource Conservation Commission under SECTION
1 (Section 50.504(j), Water Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Chapter 50, Water Code, by adding Subchapter N,
as follows:
SUBCHAPTER N. EXCLUSION OF CERTAIN UNSERVED PROPERTY
Sec. 50.501. APPLICABILITY. Makes this subchapter
applicable to certain districts or authorities created by
Article III, Section 52, or Article XVI, Section 59, Texas
Constitution (district) that provides potable or treated water
supply services or wastewater services; and imposes a tax on
property in the district at a rate that does not exceed $1.20
per $100 assessed valuation; and does not impose a standby
fee, as defined by Section 50.056.
Sec. 50.502. PETITION FOR EXCLUSION OF UNSERVED PROPERTY.
(a) Authorizes the owner of property in a district on which
the district has imposed a tax but to which the district does
not provide services to petition the governing body of the
district (board) to exclude the property from the district if
certain criteria is met.
(b) Requires the owner to send the petition to the
district's main office by certified mail.
Sec. 50.503. CONTENT OF PETITION. Sets forth information
required to be contained in the petitition for exclusion
(petition).
Sec. 50.504. ACTION ON PETITION; ENFORCEMENT. (a) Requires
the board to consider a petition as an application for
services.
(b) Requires the board, by the 35th day after receiving the
petition, to decide whether to provide services to the
property; or decide not to provide services and decide to
request approval from the executive director of the Texas
Natural Resource Conservation Commission (executive
director) to exclude the property.
(c) Requires the board, if it decides not to provide the
services, to make the request under Subsection (b)(2) by the
35th day after receiving the petition.
(d) Requires the executive director to approve or disapprove
the request before the 61st day after the request is
received. Requires the executive director to approve the
property exclusion if the executive director makes certain
findings.
(e) Requires the board, if the executive director approves
the exclusion, to grant the petition and issue an order
excluding the property if the board decides not to approve
the services. Provides that the order takes effect
immediately. Sets forth information required to be in an
order to exclude property.
(f) Requires the board to file for record a certified copy
of the order in the real property records of the county
where the property is located.
(g) Requires the board, by the 35th day after receiving the
petition, to prepare and present to the petitioner a plan
and schedule for providing service to the property if the
board decides to provide the services in lieu of exclusion.
Requires the district to begin operations to carry out the
plan by the 90th day after the date the plan is presented.
(h) Authorizes the petitioner to petition the Texas Natural
Resource Conservation Commission (commission) to order the
board to exclude the property or carry out the plan for
providing service to the property if the board fails to meet
the deadline in Subsection (b), (c), (d), or (g). Requires
the petition to be filed by the 30th day after the deadline
that was not met.
(i) Authorizes the petitioner to appeal the board's decision
to provide service to the property by filing a petition
requesting the commission to order the board to exclude the
property from the district. Requires the petition to be
filed by the 30th day after the board provides the plan for
providing service to the property. Authorizes the board to
suspend preparations or operations to carry out the plan
pending hearing on the appeal.
(j) Requires the commission to order a hearing on the
petition to be held before the 61st day after receipt of a
petition under Subsection (h) or (i). Requires the
commission to give notice of the hearing as provided by
commission rule to all persons affected the hearing's
outcome. Authorizes the commission, by rule, to require a
petitioner to include with the petition a deposit to pay the
costs of the notice.
(k) Requires the commission to order the board to exclude
the property if it finds at a hearing for a petition filed
under Subsection (h) that the board failed without cause to
provide the petitioner with a plan for providing services or
fails in the implementation of the plan.
(l) Requires the commission to order the board to exclude
the property if it finds at a hearing for a petition filed
under Subsection (i) that the plan for providing services to
the property is unreasonable or impracticable.
(m) Authorizes a property owner who has filed a petition to
bring suit in district court to order the board to provide
services or issue an exclusion order in accordance with
periods provided by this section if it appears that the
board is not complying with this section.
Sec. 50.505. EFFECT OF ORDER. (a) Provides that an exclusion
order removes the identified property from the jurisdiction of
the district. Provides that the exclusion of property does
not diminish or impair the rights of holders of any
outstanding or unpaid bonds, warrants, or other obligations of
the district.
(b) Provides that the excluded property is not released from
payment of its pro rata share of the district's debt
existing on the date of the exclusion order. Requires the
district to continue to levy taxes each year on the excluded
property equal to the property's share of the debt.
Requires the taxes collected to be exclusively applied to
the payment of that debt. Authorizes the owner of the
excluded property to pay the debt in full without penalty at
any time.
(c) Provides that the excluded property is not subject to
any debt of the district incurred after the date of the
exclusion order.
Sec. 50.506. EXPIRATION OF SUBCHAPTER. Provides that this
subchapter expires September 1, 1997.
SECTION 2. Effective date: September 1, 1995.
SECTION 3. Emergency clause.