S.B. No. 1172 AN ACT 1-1 relating to the exclusion of certain nonirrigated property from 1-2 certain water districts. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter O, Chapter 51, Water Code, is amended 1-5 by adding Sections 51.759 through 51.766 to read as follows: 1-6 Sec. 51.759. EXCLUSION OF CERTAIN NONIRRIGATED LAND. 1-7 (a) If a district is principally engaged in providing water for 1-8 agricultural irrigation or the primary purpose of the district is 1-9 to provide water for agricultural irrigation, by complying with 1-10 Sections 51.760 through 51.766, the board may exclude from the 1-11 district land that is not being irrigated because: 1-12 (1) the land is not irrigable; 1-13 (2) the owners of a majority of the acreage of the 1-14 land no longer intend to irrigate the land; 1-15 (3) the land has been subdivided into town lots, town 1-16 lots and blocks, or small parcels having the same general nature of 1-17 town lots, including lots and blocks designed, intended, or 1-18 suitable for a residential, commercial, or other nonagricultural 1-19 purpose; or 1-20 (4) the land is located on subdivided land and is: 1-21 (A) designated as a street, alley, parkway, or 1-22 park; or 1-23 (B) a railroad property or right-of-way. 1-24 (b) Land described by Subsection (a) may be excluded 2-1 regardless of whether: 2-2 (1) the land is within or near municipal boundaries; 2-3 or 2-4 (2) a plat or map of the land has been filed for 2-5 record in the office of the county clerk of the county in which any 2-6 part of the land is located. 2-7 (c) The board may not exclude land described by Subsection 2-8 (a) if the land has been used for an agricultural purpose within 2-9 the year preceding the date of the hearing held under Section 2-10 51.761. 2-11 Sec. 51.760. INITIATING EXCLUSION. (a) A petition to 2-12 exclude land may be filed with the board by the owners of a 2-13 majority in acreage of land described by Section 51.759 that is 2-14 located in the district. 2-15 (b) The petition must accurately describe the land to be 2-16 excluded by metes and bounds or lot and block number. A petition 2-17 for exclusion of other property must describe the property to be 2-18 excluded. 2-19 (c) The board may initiate a proceeding to exclude land 2-20 without receiving a petition by holding a hearing on its own motion 2-21 and issuing an order as provided by Section 51.761. 2-22 Sec. 51.761. HEARING, NOTICE, AND ORDER OF EXCLUSION. 2-23 (a) On the board's motion or on receipt of a petition to exclude 2-24 land, the board shall give notice and hold a hearing on the 2-25 proposed exclusion. 2-26 (b) The board shall publish notice of the hearing in a 2-27 newspaper of general circulation in the district once each week for 3-1 two consecutive weeks. The first publication must appear at least 3-2 14 days before the date of the hearing. 3-3 (c) The notice must advise interested property owners in the 3-4 district: 3-5 (1) of the right to offer evidence in support of or to 3-6 contest the proposed exclusion; 3-7 (2) of the right to present a petition for exclusion 3-8 under Sections 51.759 through 51.766; 3-9 (3) of the date, time, and place of the hearing; and 3-10 (4) by a general description of the property proposed 3-11 for exclusion. 3-12 (d) The board may adjourn the hearing from one day to 3-13 another until the board hears every person who desires to be heard. 3-14 (e) The board shall specifically describe all property that 3-15 it proposes to exclude on its own motion. 3-16 (f) In a hearing on exclusion of property on the board's own 3-17 motion, the board shall hear protests and evidence against the 3-18 exclusion before the board hears any other evidence or matter. 3-19 (g) The board shall issue an order excluding the property if 3-20 after considering evidence presented at the hearing the board finds 3-21 that: 3-22 (1) the described property is eligible for exclusion 3-23 under Section 51.759; 3-24 (2) if applicable, the written consent required by 3-25 Section 51.762 has been filed; 3-26 (3) the owners of the property to be excluded do not 3-27 object to the exclusion; and 4-1 (4) to exclude the property from the district is in 4-2 the best interest of the district and of the property. 4-3 Sec. 51.762. CONSENT OF DEBT HOLDERS. If the district has 4-4 outstanding bonded debt or debt under a loan from a governmental 4-5 agency, a written consent to the exclusion from an authorized 4-6 representative of the holders of the debt shall be obtained and 4-7 filed with the district before the hearing is held. 4-8 Sec. 51.763. RESULTS OF EXCLUSION. (a) On the issuance of 4-9 an order excluding property: 4-10 (1) the property is no longer a part of the district 4-11 and is not entitled to district services; 4-12 (2) any tax, assessment, or other charge owed to the 4-13 district at the time of exclusion remains the obligation of the 4-14 owner of excluded property and continues to be secured by statutory 4-15 liens on the property, if any; and 4-16 (3) the owner of excluded land has no further 4-17 liability to the district for future taxes, assessments, or other 4-18 charges of the district attributable to the excluded land. 4-19 (b) The district shall record a copy of the order excluding 4-20 the property from the district, certified and acknowledged by the 4-21 secretary of the board, in the real property records of the county 4-22 in which the excluded property is located. 4-23 Sec. 51.764. DISTRICT FACILITIES ON EXCLUDED PROPERTY. The 4-24 exclusion does not affect or interfere with any rights that the 4-25 district has to maintain and continue operation of any canal, 4-26 ditch, pipeline, pump, or other facility of the district located on 4-27 land excluded by the order to serve land remaining in the district. 5-1 Sec. 51.765. WATER ALLOCATIONS. (a) After the district 5-2 adopts an order excluding nonirrigated property, a municipality or 5-3 water supply corporation that serves the excluded land with a 5-4 potable water supply may petition the district to apply to the 5-5 commission to convert the proportionate irrigation water allocation 5-6 of the excluded land from irrigation use to municipal use 5-7 allocation. 5-8 (b) The district shall make the application to the 5-9 commission not later than the 30th day after the date a 5-10 municipality or water supply corporation that serves the land with 5-11 a potable water supply petitions the district to make the 5-12 application if the municipality or water supply corporation: 5-13 (1) pays the district the amount the district 5-14 estimates will be its reasonable expenses and attorney's fees 5-15 incurred in the commission conversion proceedings; and 5-16 (2) enters into an agreement with the district 5-17 establishing the terms on which the water allocation shall be 5-18 delivered or made available to the municipality or water supply 5-19 corporation. 5-20 (c) If the parties cannot agree to water allocation terms, 5-21 the parties shall attempt resolution of their differences through 5-22 mediation, arbitration, or another alternative dispute resolution 5-23 process. The commission does not have jurisdiction to resolve the 5-24 parties' differences. 5-25 (d) Together with the district's application, the 5-26 municipality or water supply corporation must provide the 5-27 commission with evidence to support the projected need for water 6-1 for the five years after the conversion to a municipal-use water 6-2 allocation. 6-3 Sec. 51.766. SUIT TO REVIEW EXCLUSION. (a) A person who 6-4 owns an interest in property affected by an exclusion order issued 6-5 under Section 51.761 may sue to review, set aside, modify, or 6-6 suspend the order not later than the 20th day after the effective 6-7 date of the order. 6-8 (b) Venue is in any district court that has jurisdiction in 6-9 the county in which the district is located. If the district 6-10 includes land in more than one county, venue is in the district 6-11 court having jurisdiction in the county in which the largest 6-12 portion of the acreage of the land sought to be excluded from the 6-13 district is located. 6-14 (c) A person may appeal from the judgment or order of a 6-15 district court in a suit brought under this section to the court of 6-16 civil appeals and the supreme court as in other civil cases in 6-17 which the district court has original jurisdiction. 6-18 SECTION 2. Subchapter O, Chapter 55, Water Code, is amended 6-19 by adding Section 55.755 to read as follows: 6-20 Sec. 55.755. EXCLUSION OF CERTAIN NONIRRIGATED LAND. If a 6-21 district is principally engaged in providing water for agricultural 6-22 irrigation or the primary purpose of the district is to provide 6-23 water for agricultural irrigation, the board may exclude from the 6-24 district land that is not being irrigated as provided by Sections 6-25 51.759 through 51.766. This section applies only to land that is 6-26 eligible for exclusion under Section 51.759. 6-27 SECTION 3. Subchapter N, Chapter 58, Water Code, is amended 7-1 by adding Section 58.731 to read as follows: 7-2 Sec. 58.731. EXCLUSION OF CERTAIN NONIRRIGATED LAND. The 7-3 board may exclude from the district land that is not being 7-4 irrigated as provided by Sections 51.759 through 51.766. This 7-5 section applies only to land that is eligible for exclusion under 7-6 Section 51.759. 7-7 SECTION 4. The importance of this legislation and the 7-8 crowded condition of the calendars in both houses create an 7-9 emergency and an imperative public necessity that the 7-10 constitutional rule requiring bills to be read on three several 7-11 days in each house be suspended, and this rule is hereby suspended, 7-12 and that this Act take effect and be in force from and after its 7-13 passage, and it is so enacted.