By:  Lucio                                            S.B. No. 1172
                                 A BILL TO BE ENTITLED
                                        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.