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.