H.B. No. 546
1-1 AN ACT
1-2 relating to the exclusion of unserved property from certain water
1-3 conservation and reclamation districts.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 50, Water Code, is amended by adding
1-6 Subchapter N to read as follows:
1-7 SUBCHAPTER N. EXCLUSION OF CERTAIN UNSERVED PROPERTY
1-8 Sec. 50.501. APPLICABILITY. This subchapter applies only to
1-9 a district that:
1-10 (1) provides potable or treated water supply services
1-11 or wastewater services;
1-12 (2) imposes a tax on property in the district at a
1-13 rate that does not exceed $1.20 per $100 assessed valuation; and
1-14 (3) does not impose a standby fee, as defined by
1-15 Section 50.056.
1-16 Sec. 50.502. PETITION FOR EXCLUSION OF UNSERVED PROPERTY.
1-17 (a) The owner of property in a district on which the district has
1-18 imposed a tax but to which the district does not provide services
1-19 may petition the board to exclude the property from the district
1-20 if:
1-21 (1) the owner or the owner's predecessor in interest
1-22 has requested the district to provide services to the property and
1-23 the district has declined to provide services;
1-24 (2) all taxes the district has levied and assessed
2-1 against the property and all fees and assessments the district has
2-2 imposed against the property or the owner that are due and payable
2-3 on or before the date of the petition are fully paid; and
2-4 (3) the property is located in an area:
2-5 (A) separated from the remainder of the district
2-6 by a United States highway or interstate highway constructed by the
2-7 Texas Department of Transportation or a predecessor of the
2-8 department and the highway causes the provision of service by the
2-9 district to be financially unfeasible; or
2-10 (B) for which the commission or a predecessor of
2-11 the commission has issued a certificate of convenience and
2-12 necessity under Subchapter G, Chapter 13, Water Code, and service
2-13 is being provided under that certificate.
2-14 (b) The owner must send the petition to the district's main
2-15 office by certified mail.
2-16 Sec. 50.503. CONTENT OF PETITION. The petition for
2-17 exclusion must:
2-18 (1) state that the property owner desires the
2-19 district's services and that the district has declined to provide
2-20 the services to the property;
2-21 (2) accurately describe real property to be excluded
2-22 by its metes and bounds or by lot and block if there is a recorded
2-23 map or plat and survey of the property;
2-24 (3) describe for identification other property to be
2-25 excluded; and
2-26 (4) include any other information the district
2-27 requires.
3-1 Sec. 50.504. ACTION ON PETITION; ENFORCEMENT. (a) The
3-2 board shall consider a petition for exclusion of property as an
3-3 application for services. Not later than the 35th day after the
3-4 date of receipt of the petition the board shall decide whether to
3-5 provide the services to the petitioner's property or grant the
3-6 petition for exclusion.
3-7 (b) If the board decides not to provide the services, not
3-8 later than the 35th day after the date of receipt of the petition
3-9 the board shall grant the petition for exclusion and issue an order
3-10 excluding the property. The order takes effect immediately. An
3-11 order to exclude property must:
3-12 (1) identify the property that is the subject of the
3-13 petition;
3-14 (2) redefine the boundaries of the district; and
3-15 (3) exclude the identified property.
3-16 (c) The board shall file for record a certified copy of the
3-17 order in the real property records of the county where the property
3-18 is located.
3-19 (d) If the board decides to provide the services in lieu of
3-20 excluding the property, not later than the 35th day after the date
3-21 of the decision, the board shall prepare and present to the
3-22 petitioner a plan and schedule for providing service to the
3-23 property, and the district shall begin operations to carry out the
3-24 plan not later than the 90th day after the date the plan is
3-25 presented.
3-26 (e) The petitioner may petition the commission to order the
3-27 board to exclude the property or carry out the plan for providing
4-1 service to the property if the board fails to meet a deadline
4-2 provided by Subsection (a), (b), or (d). The petition must be
4-3 filed on or before the 30th day after the date of the deadline that
4-4 was not met.
4-5 (f) The petitioner may appeal the board's decision to
4-6 provide service to the property by filing a petition with the
4-7 commission requesting that the commission order the board to
4-8 exclude the property from the district. The petition must be filed
4-9 on or before the 30th day after the date the board provides the
4-10 plan for providing service to the property. The board may suspend
4-11 its preparations or operations to carry out the plan pending
4-12 hearing on the appeal.
4-13 (g) On receipt of a petition under Subsection (e) or (f),
4-14 the commission shall order a hearing on the petition to be held not
4-15 later than the 60th day after the date of its receipt of the
4-16 petition. The commission shall give notice of the hearing as
4-17 provided by commission rule to all persons who may be affected by
4-18 the outcome of the hearing. The commission by rule may require a
4-19 petitioner to include with the petition a deposit in an amount
4-20 estimated to be sufficient to pay the costs of the notice.
4-21 (h) If the commission finds at a hearing on a petition filed
4-22 under Subsection (e) that the board has failed without good cause
4-23 to provide the petitioner with a plan for providing services or
4-24 fails to go forward in good faith with the implementation of the
4-25 plan adopted by the board, the commission shall order the board to
4-26 exclude the property.
4-27 (i) If the commission finds at a hearing on a petition filed
5-1 under Subsection (f) that the plan for providing services to the
5-2 property is unreasonable or impracticable, the commission shall
5-3 order the board to exclude the property from the district.
5-4 (j) A property owner who has filed a petition for exclusion
5-5 under this subchapter may bring suit in district court to order the
5-6 board to provide services or issue an order of exclusion in
5-7 accordance with the periods provided by this section if it appears
5-8 that the board is not complying with this section. Review by the
5-9 court is by trial de novo.
5-10 Sec. 50.505. EFFECT OF ORDER. (a) An order of exclusion
5-11 issued under this subchapter removes the identified property from
5-12 the jurisdiction of the district. The exclusion of the property
5-13 does not diminish or impair the rights of holders of any
5-14 outstanding and unpaid bonds, warrants, or other obligations of the
5-15 district.
5-16 (b) Property excluded under this subchapter is not released
5-17 from the payment of its pro rata share of the district's debt
5-18 existing on the date of the order of exclusion. The district shall
5-19 continue to levy taxes each year on the excluded property equal to
5-20 the property's share of the debt and the taxes collected shall be
5-21 applied exclusively to the payment of that debt. The owner of the
5-22 excluded property may at any time pay the debt in full without
5-23 penalty.
5-24 (c) The excluded property is not subject to any debt of the
5-25 district incurred after the date of the exclusion order.
5-26 Sec. 50.506. EXPIRATION OF SUBCHAPTER. This subchapter
5-27 expires September 1, 2002.
6-1 SECTION 2. This Act takes effect September 1, 1995.
6-2 SECTION 3. The importance of this legislation and the
6-3 crowded condition of the calendars in both houses create an
6-4 emergency and an imperative public necessity that the
6-5 constitutional rule requiring bills to be read on three several
6-6 days in each house be suspended, and this rule is hereby suspended.