BILL ANALYSIS H.B. 1800 By: Gutierrez 3-20-95 Committee Report (Unamended) BACKGROUND Under Title 4, Texas Water Code, there are districts specifically defined as irrigation districts. These districts were originally created in agricultural areas with the main concentration of such districts in South Texas along the Lower and Middle Rio Grande River and in the northeastern part of the state. The need for this type of legislation arose as urbanization occurred within the water districts. In 1983, the Legislature adopted Article 973c, which was an attempt to provide for an orderly transition from farmland to urban property within a water district, consequently resulting in the change from irrigation water to municipal water for such property. Few exclusions were attempted under this article as there was some confusion regarding how to deal with loss of income to water districts. This bill has dealt with that question and has the support of the water districts. PURPOSE To address the problem of increased municipal water needs upon urbanization of previously designated farmland. Provides for the orderly transition from the use of irrigation water to the use of municipal water. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter O, Chapter 51, Water Code, by adding Sections 51.759-51.766. Section 51.759. Specifies the provisions for the exclusion of land if a district is principally engaged in providing water for agricultural irrigation. Section 51.760. Sets the provisions and proceedings for initiating the exclusion of land. Section 51.761. Provides for the hearing, notice and issuance of orders upon the exclusion of land. Section 51.762. Stipulates that the holders of the debt on the district must give written consent to the exclusion of land and it must be filed before the hearing is held. Section 51.763. Enumerates the results of the exclusion of land from certain water districts and directs the district to record a copy of the order excluding the proposition from the district, certified and acknowledged by the secretary of the board, in the real property records of the county in which the excluded property is located. Section 51.764. Provides that the exclusion does not affect the rights of the district to continue operation of any canal, ditch, pipeline, pump or other facility of the district located on the excluded land. Section 51.765. Provides for the allocation of water of the excluded property from irrigation to municipal use; delineates the requirements and procedures for making such a conversion; as well as provides for an allocation dispute resolution process in the event the parties can not agree to water allocation terms. Section 51.766. Provides that a person who owns an interest in property affected by the exclusion may sue to review, set aside, modify, or suspend the order no later than the 20th day after the effective date of the order. States venue and right to appeal provisions. SECTION 2. Amends Subchapter O, Chapter 55, Water Code, by adding Section 55.755. Section 55.755. Specifies that if a district is principally engaged in agricultural irrigation, the board may exclude from the district land that is not being irrigated, as provided by Sections 51.759- 51.766, Water Code. Stipulates the application of this Section only to land that is eligible for exclusion under 51.759. SECTION 3. Amends Subchapter N, Chapter 58, Water Code, by adding Section 58.731. Section 58.731. Provides that the board may exclude from the district, land that is not being irrigated as provided by Sections 51.759-51.766, Water Code; stipulates the application of this section to only the land that is eligible for exclusion under Section 51.759, Water Code. SECTION 4. Emergency clause. SUMMARY OF COMMITTEE ACTION H.B.1800 was considered by the committee in a public hearing on March 20, 1995. The following persons testified in favor of the bill: Mr. Jim Darling, representing the City of McAllen; Mr. Wayne Halbert, representing Texas Irrigation Council. The following persons testified against the bill: None (0). The following persons testified on the bill: None (0). The bill was reported favorably without amendment, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 6 ayes, 0 nays, 0 pnv, 0 absent.