1-1 By: Brimer, Crabb (Senate Sponsor - Harris) H.B. No. 546
1-2 (In the Senate - Received from the House May 4, 1995;
1-3 May 5, 1995, read first time and referred to Committee on Natural
1-4 Resources; May 17, 1995, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 9, Nays 0;
1-6 May 17, 1995, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 546 By: Haywood
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the exclusion of unserved property from certain water
1-11 conservation and reclamation districts.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Chapter 50, Water Code, is amended by adding
1-14 Subchapter N to read as follows:
1-15 SUBCHAPTER N. EXCLUSION OF CERTAIN UNSERVED PROPERTY
1-16 Sec. 50.501. APPLICABILITY. This subchapter applies only to
1-17 a district that:
1-18 (1) provides potable or treated water supply services
1-19 or wastewater services;
1-20 (2) imposes a tax on property in the district at a
1-21 rate that does not exceed $1.20 per $100 assessed valuation; and
1-22 (3) does not impose a standby fee, as defined by
1-23 Section 50.056.
1-24 Sec. 50.502. PETITION FOR EXCLUSION OF UNSERVED PROPERTY.
1-25 (a) The owner of property in a district on which the district has
1-26 imposed a tax but to which the district does not provide services
1-27 may petition the board to exclude the property from the district
1-28 if:
1-29 (1) the owner or the owner's predecessor in interest
1-30 has requested the district to provide services to the property and
1-31 the district has declined to provide services;
1-32 (2) all taxes the district has levied and assessed
1-33 against the property and all fees and assessments the district has
1-34 imposed against the property or the owner that are due and payable
1-35 on or before the date of the petition are fully paid; and
1-36 (3) the property is located in an area:
1-37 (A) separated from the remainder of the district
1-38 by a United States highway or interstate highway constructed by the
1-39 Texas Department of Transportation or a predecessor of the
1-40 department and the highway causes the provision of service by the
1-41 district to be financially unfeasible; or
1-42 (B) for which the commission or a predecessor of
1-43 the commission has issued a certificate of convenience and
1-44 necessity under Subchapter G, Chapter 13, Water Code, and service
1-45 is being provided under that certificate.
1-46 (b) The owner must send the petition to the district's main
1-47 office by certified mail.
1-48 Sec. 50.503. CONTENT OF PETITION. The petition for
1-49 exclusion must:
1-50 (1) state that the property owner desires the
1-51 district's services and that the district has declined to provide
1-52 the services to the property;
1-53 (2) accurately describe real property to be excluded
1-54 by its metes and bounds or by lot and block if there is a recorded
1-55 map or plat and survey of the property;
1-56 (3) describe for identification other property to be
1-57 excluded; and
1-58 (4) include any other information the district
1-59 requires.
1-60 Sec. 50.504. ACTION ON PETITION; ENFORCEMENT. (a) The
1-61 board shall consider a petition for exclusion of property as an
1-62 application for services.
1-63 (b) Not later than the 35th day after the date of receipt of
1-64 the petition the board shall:
1-65 (1) decide to provide the services to the petitioner's
1-66 property; or
1-67 (2) decide not to provide services and decide to
1-68 request approval from the executive director to exclude the
2-1 property.
2-2 (c) If the board decides not to provide the services, the
2-3 board shall make the request under Subsection (b)(2) not later than
2-4 the 35th day after the date of receipt of the petition.
2-5 (d) The executive director shall approve or disapprove the
2-6 request under Subsection (b) before the 61st day after the date the
2-7 request is received. The executive director shall approve the
2-8 exclusion of the property if the executive director finds:
2-9 (1) this subchapter applies to the district;
2-10 (2) the requirements of Section 50.502 are satisfied;
2-11 and
2-12 (3) the financial feasibility of the district and the
2-13 district's bonds would not be impaired by the exclusion.
2-14 (e) If the executive director approves the exclusion, the
2-15 board shall grant the petition for exclusion and issue an order
2-16 excluding the property. The order takes effect immediately. An
2-17 order to exclude property must:
2-18 (1) identify the property that is the subject of the
2-19 petition;
2-20 (2) redefine the boundaries of the district; and
2-21 (3) exclude the identified property.
2-22 (f) The board shall file for record a certified copy of the
2-23 order in the real property records of the county where the property
2-24 is located.
2-25 (g) If the board decides to provide the services in lieu of
2-26 excluding the property, not later than the 35th day after the date
2-27 of the decision, the board shall prepare and present to the
2-28 petitioner a plan and schedule for providing service to the
2-29 property, and the district shall begin operations to carry out the
2-30 plan not later than the 90th day after the date the plan is
2-31 presented.
2-32 (h) The petitioner may petition the commission to order the
2-33 board to exclude the property or carry out the plan for providing
2-34 service to the property if the board fails to meet a deadline
2-35 provided by Subsection (b), (c), (d), or (g). The petition must be
2-36 filed on or before the 30th day after the date of the deadline that
2-37 was not met.
2-38 (i) The petitioner may appeal the board's decision to
2-39 provide service to the property by filing a petition with the
2-40 commission requesting that the commission order the board to
2-41 exclude the property from the district. The petition must be filed
2-42 on or before the 30th day after the date the board provides the
2-43 plan for providing service to the property. The board may suspend
2-44 its preparations or operations to carry out the plan pending
2-45 hearing on the appeal.
2-46 (j) On receipt of a petition under Subsection (h) or (i),
2-47 the commission shall order a hearing on the petition to be held
2-48 before the 61st day after the date of its receipt of the petition.
2-49 The commission shall give notice of the hearing as provided by
2-50 commission rule to all persons who may be affected by the outcome
2-51 of the hearing. The commission by rule may require a petitioner to
2-52 include with the petition a deposit in an amount estimated to be
2-53 sufficient to pay the costs of the notice.
2-54 (k) If the commission finds at a hearing on a petition filed
2-55 under Subsection (h) that the board has failed without good cause
2-56 to provide the petitioner with a plan for providing services or
2-57 fails to go forward in good faith with the implementation of the
2-58 plan adopted by the board, the commission shall order the board to
2-59 exclude the property.
2-60 (l) If the commission finds at a hearing on a petition filed
2-61 under Subsection (i) that the plan for providing services to the
2-62 property is unreasonable or impracticable, the commission shall
2-63 order the board to exclude the property from the district.
2-64 (m) A property owner who has filed a petition for exclusion
2-65 under this subchapter may bring suit in district court to order the
2-66 board to provide services or issue an order of exclusion in
2-67 accordance with the periods provided by this section if it appears
2-68 that the board is not complying with this section.
2-69 Sec. 50.505. EFFECT OF ORDER. (a) An order of exclusion
2-70 issued under this subchapter removes the identified property from
3-1 the jurisdiction of the district. The exclusion of the property
3-2 does not diminish or impair the rights of holders of any
3-3 outstanding and unpaid bonds, warrants, or other obligations of the
3-4 district.
3-5 (b) Property excluded under this subchapter is not released
3-6 from the payment of its pro rata share of the district's debt
3-7 existing on the date of the order of exclusion. The district shall
3-8 continue to levy taxes each year on the excluded property equal to
3-9 the property's share of the debt and the taxes collected shall be
3-10 applied exclusively to the payment of that debt. The owner of the
3-11 excluded property may at any time pay the debt in full without
3-12 penalty.
3-13 (c) The excluded property is not subject to any debt of the
3-14 district incurred after the date of the exclusion order.
3-15 Sec. 50.506. EXPIRATION OF SUBCHAPTER. This subchapter
3-16 expires September 1, 1997.
3-17 SECTION 2. This Act takes effect September 1, 1995.
3-18 SECTION 3. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended.
3-23 * * * * *