74R8970 JJT-F By Brimer, Crabb H.B. No. 546 Substitute the following for H.B. No. 546: By Yost C.S.H.B. No. 546 A BILL TO BE ENTITLED 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; and 1-12 (2) imposes a tax on property in the district. 1-13 Sec. 50.502. PETITION FOR EXCLUSION OF UNSERVED PROPERTY. 1-14 (a) The owner of property in a district on which the district has 1-15 imposed a tax but to which the district does not provide services 1-16 may petition the board to exclude the property from the district 1-17 if: 1-18 (1) the owner or the owner's predecessor in interest 1-19 has requested the district to provide services to the property and 1-20 the district has declined to provide services; and 1-21 (2) all taxes the district has levied and assessed 1-22 against the property and all fees and assessments the district has 1-23 imposed against the property or the owner that are due and payable 1-24 on or before the date of the petition are fully paid. 2-1 (b) The owner must send the petition to the district's main 2-2 office by certified mail. 2-3 Sec. 50.503. CONTENT OF PETITION. The petition for 2-4 exclusion must: 2-5 (1) state that the property owner desires the 2-6 district's services and that the district has declined to provide 2-7 the services to the property; 2-8 (2) accurately describe real property to be excluded 2-9 by its metes and bounds or by lot and block if there is a recorded 2-10 map or plat and survey of the property; 2-11 (3) describe for identification other property to be 2-12 excluded; and 2-13 (4) include any other information the district 2-14 requires. 2-15 Sec. 50.504. ACTION ON PETITION; ENFORCEMENT. (a) The 2-16 board shall consider a petition for exclusion of property as an 2-17 application for services. Not later than the 35th day after the 2-18 date of receipt of the petition the board shall decide whether to 2-19 provide the services to the petitioner's property or grant the 2-20 petition for exclusion. 2-21 (b) If the board decides not to provide the services, not 2-22 later than the 35th day after the date of receipt of the petition 2-23 the board shall grant the petition for exclusion and issue an order 2-24 excluding the property. The order takes effect immediately. An 2-25 order to exclude property must: 2-26 (1) identify the property that is the subject of the 2-27 petition; 3-1 (2) redefine the boundaries of the district; and 3-2 (3) exclude the identified property. 3-3 (c) The board shall file for record a certified copy of the 3-4 order in the real property records of the county where the property 3-5 is located. 3-6 (d) If the board decides to provide the services in lieu of 3-7 excluding the property, not later than the 35th day after the date 3-8 of the decision, the board shall prepare and present to the 3-9 petitioner a plan and schedule for providing service to the 3-10 property, and the district shall begin operations to carry out the 3-11 plan not later than the 90th day after the date the plan is 3-12 presented. 3-13 (e) The petitioner may petition the commission to order the 3-14 board to exclude the property or carry out the plan for providing 3-15 service to the property if the board fails to meet a deadline 3-16 provided by Subsection (a), (b), or (d). The petition must be 3-17 filed on or before the 30th day after the date of the deadline that 3-18 was not met. 3-19 (f) The petitioner may appeal the board's decision to 3-20 provide service to the property by filing a petition with the 3-21 commission requesting that the commission order the board to 3-22 exclude the property from the district. The petition must be filed 3-23 on or before the 30th day after the date the board provides the 3-24 plan for providing service to the property. The board may suspend 3-25 its preparations or operations to carry out the plan pending 3-26 hearing on the appeal. 3-27 (g) On receipt of a petition under Subsection (e) or (f), 4-1 the commission shall order a hearing on the petition to be held not 4-2 later than the 60th day after the date of its receipt of the 4-3 petition. The commission shall give notice of the hearing as 4-4 provided by commission rule to all persons who may be affected by 4-5 the outcome of the hearing. The commission by rule may require a 4-6 petitioner to include with the petition a deposit in an amount 4-7 estimated to be sufficient to pay the costs of the notice. 4-8 (h) If the commission finds at a hearing on a petition filed 4-9 under Subsection (e) that the board has failed without good cause 4-10 to provide the petitioner with a plan for providing services or 4-11 fails to go forward in good faith with the implementation of the 4-12 plan adopted by the board, the commission shall order the board to 4-13 exclude the property. 4-14 (i) If the commission finds at a hearing on a petition filed 4-15 under Subsection (f) that the plan for providing services to the 4-16 property is unreasonable or impracticable, the commission shall 4-17 order the board to exclude the property from the district. 4-18 (j) A property owner who has filed a petition for exclusion 4-19 under this subchapter may bring suit in district court to order the 4-20 board to provide services or issue an order of exclusion in 4-21 accordance with the periods provided by this section if it appears 4-22 that the board is not complying with this section. 4-23 Sec. 50.505. EFFECT OF ORDER. (a) An order of exclusion 4-24 issued under this subchapter removes the identified property from 4-25 the jurisdiction of the district. The exclusion of the property 4-26 does not diminish or impair the rights of holders of any 4-27 outstanding and unpaid bonds, warrants, or other obligations of the 5-1 district. 5-2 (b) Property excluded under this subchapter is not released 5-3 from the payment of its pro rata share of the district's debt 5-4 existing on the date of the order of exclusion. The district shall 5-5 continue to levy taxes each year on the excluded property equal to 5-6 the property's share of the debt and the taxes collected shall be 5-7 applied exclusively to the payment of that debt. The owner of the 5-8 excluded property may at any time pay the debt in full without 5-9 penalty. 5-10 (c) The excluded property is not subject to any debt of the 5-11 district incurred after the date of the exclusion order. 5-12 SECTION 2. This Act takes effect September 1, 1995. 5-13 SECTION 3. The importance of this legislation and the 5-14 crowded condition of the calendars in both houses create an 5-15 emergency and an imperative public necessity that the 5-16 constitutional rule requiring bills to be read on three several 5-17 days in each house be suspended, and this rule is hereby suspended.