1-1 By: Lucio S.B. No. 1172 1-2 (In the Senate - Filed March 9, 1995; March 15, 1995, read 1-3 first time and referred to Committee on Natural Resources; 1-4 March 21, 1995, reported favorably by the following vote: Yeas 10, 1-5 Nays 0; March 21, 1995, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the exclusion of certain nonirrigated property from 1-9 certain water districts. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter O, Chapter 51, Water Code, is amended 1-12 by adding Sections 51.759 through 51.766 to read as follows: 1-13 Sec. 51.759. EXCLUSION OF CERTAIN NONIRRIGATED LAND. 1-14 (a) If a district is principally engaged in providing water for 1-15 agricultural irrigation or the primary purpose of the district is 1-16 to provide water for agricultural irrigation, by complying with 1-17 Sections 51.760 through 51.766, the board may exclude from the 1-18 district land that is not being irrigated because: 1-19 (1) the land is not irrigable; 1-20 (2) the owners of a majority of the acreage of the 1-21 land no longer intend to irrigate the land; 1-22 (3) the land has been subdivided into town lots, town 1-23 lots and blocks, or small parcels having the same general nature of 1-24 town lots, including lots and blocks designed, intended, or 1-25 suitable for a residential, commercial, or other nonagricultural 1-26 purpose; or 1-27 (4) the land is located on subdivided land and is: 1-28 (A) designated as a street, alley, parkway, or 1-29 park; or 1-30 (B) a railroad property or right-of-way. 1-31 (b) Land described by Subsection (a) may be excluded 1-32 regardless of whether: 1-33 (1) the land is within or near municipal boundaries; 1-34 or 1-35 (2) a plat or map of the land has been filed for 1-36 record in the office of the county clerk of the county in which any 1-37 part of the land is located. 1-38 (c) The board may not exclude land described by Subsection 1-39 (a) if the land has been used for an agricultural purpose within 1-40 the year preceding the date of the hearing held under Section 1-41 51.761. 1-42 Sec. 51.760. INITIATING EXCLUSION. (a) A petition to 1-43 exclude land may be filed with the board by the owners of a 1-44 majority in acreage of land described by Section 51.759 that is 1-45 located in the district. 1-46 (b) The petition must accurately describe the land to be 1-47 excluded by metes and bounds or lot and block number. A petition 1-48 for exclusion of other property must describe the property to be 1-49 excluded. 1-50 (c) The board may initiate a proceeding to exclude land 1-51 without receiving a petition by holding a hearing on its own motion 1-52 and issuing an order as provided by Section 51.761. 1-53 Sec. 51.761. HEARING, NOTICE, AND ORDER OF EXCLUSION. 1-54 (a) On the board's motion or on receipt of a petition to exclude 1-55 land, the board shall give notice and hold a hearing on the 1-56 proposed exclusion. 1-57 (b) The board shall publish notice of the hearing in a 1-58 newspaper of general circulation in the district once each week for 1-59 two consecutive weeks. The first publication must appear at least 1-60 14 days before the date of the hearing. 1-61 (c) The notice must advise interested property owners in the 1-62 district: 1-63 (1) of the right to offer evidence in support of or to 1-64 contest the proposed exclusion; 1-65 (2) of the right to present a petition for exclusion 1-66 under Sections 51.759 through 51.766; 1-67 (3) of the date, time, and place of the hearing; and 1-68 (4) by a general description of the property proposed 2-1 for exclusion. 2-2 (d) The board may adjourn the hearing from one day to 2-3 another until the board hears every person who desires to be heard. 2-4 (e) The board shall specifically describe all property that 2-5 it proposes to exclude on its own motion. 2-6 (f) In a hearing on exclusion of property on the board's own 2-7 motion, the board shall hear protests and evidence against the 2-8 exclusion before the board hears any other evidence or matter. 2-9 (g) The board shall issue an order excluding the property if 2-10 after considering evidence presented at the hearing the board finds 2-11 that: 2-12 (1) the described property is eligible for exclusion 2-13 under Section 51.759; 2-14 (2) if applicable, the written consent required by 2-15 Section 51.762 has been filed; 2-16 (3) the owners of the property to be excluded do not 2-17 object to the exclusion; and 2-18 (4) to exclude the property from the district is in 2-19 the best interest of the district and of the property. 2-20 Sec. 51.762. CONSENT OF DEBT HOLDERS. If the district has 2-21 outstanding bonded debt or debt under a loan from a governmental 2-22 agency, a written consent to the exclusion from an authorized 2-23 representative of the holders of the debt shall be obtained and 2-24 filed with the district before the hearing is held. 2-25 Sec. 51.763. RESULTS OF EXCLUSION. (a) On the issuance of 2-26 an order excluding property: 2-27 (1) the property is no longer a part of the district 2-28 and is not entitled to district services; 2-29 (2) any tax, assessment, or other charge owed to the 2-30 district at the time of exclusion remains the obligation of the 2-31 owner of excluded property and continues to be secured by statutory 2-32 liens on the property, if any; and 2-33 (3) the owner of excluded land has no further 2-34 liability to the district for future taxes, assessments, or other 2-35 charges of the district attributable to the excluded land. 2-36 (b) The district shall record a copy of the order excluding 2-37 the property from the district, certified and acknowledged by the 2-38 secretary of the board, in the real property records of the county 2-39 in which the excluded property is located. 2-40 Sec. 51.764. DISTRICT FACILITIES ON EXCLUDED PROPERTY. The 2-41 exclusion does not affect or interfere with any rights that the 2-42 district has to maintain and continue operation of any canal, 2-43 ditch, pipeline, pump, or other facility of the district located on 2-44 land excluded by the order to serve land remaining in the district. 2-45 Sec. 51.765. WATER ALLOCATIONS. (a) After the district 2-46 adopts an order excluding nonirrigated property, a municipality or 2-47 water supply corporation that serves the excluded land with a 2-48 potable water supply may petition the district to apply to the 2-49 commission to convert the proportionate irrigation water allocation 2-50 of the excluded land from irrigation use to municipal use 2-51 allocation. 2-52 (b) The district shall make the application to the 2-53 commission not later than the 30th day after the date a 2-54 municipality or water supply corporation that serves the land with 2-55 a potable water supply petitions the district to make the 2-56 application if the municipality or water supply corporation: 2-57 (1) pays the district the amount the district 2-58 estimates will be its reasonable expenses and attorney's fees 2-59 incurred in the commission conversion proceedings; and 2-60 (2) enters into an agreement with the district 2-61 establishing the terms on which the water allocation shall be 2-62 delivered or made available to the municipality or water supply 2-63 corporation. 2-64 (c) If the parties cannot agree to water allocation terms, 2-65 the parties shall attempt resolution of their differences through 2-66 mediation, arbitration, or another alternative dispute resolution 2-67 process. The commission does not have jurisdiction to resolve the 2-68 parties' differences. 2-69 (d) Together with the district's application, the 2-70 municipality or water supply corporation must provide the 3-1 commission with evidence to support the projected need for water 3-2 for the five years after the conversion to a municipal-use water 3-3 allocation. 3-4 Sec. 51.766. SUIT TO REVIEW EXCLUSION. (a) A person who 3-5 owns an interest in property affected by an exclusion order issued 3-6 under Section 51.761 may sue to review, set aside, modify, or 3-7 suspend the order not later than the 20th day after the effective 3-8 date of the order. 3-9 (b) Venue is in any district court that has jurisdiction in 3-10 the county in which the district is located. If the district 3-11 includes land in more than one county, venue is in the district 3-12 court having jurisdiction in the county in which the largest 3-13 portion of the acreage of the land sought to be excluded from the 3-14 district is located. 3-15 (c) A person may appeal from the judgment or order of a 3-16 district court in a suit brought under this section to the court of 3-17 civil appeals and the supreme court as in other civil cases in 3-18 which the district court has original jurisdiction. 3-19 SECTION 2. Subchapter O, Chapter 55, Water Code, is amended 3-20 by adding Section 55.755 to read as follows: 3-21 Sec. 55.755. EXCLUSION OF CERTAIN NONIRRIGATED LAND. If a 3-22 district is principally engaged in providing water for agricultural 3-23 irrigation or the primary purpose of the district is to provide 3-24 water for agricultural irrigation, the board may exclude from the 3-25 district land that is not being irrigated as provided by Sections 3-26 51.759 through 51.766. This section applies only to land that is 3-27 eligible for exclusion under Section 51.759. 3-28 SECTION 3. Subchapter N, Chapter 58, Water Code, is amended 3-29 by adding Section 58.731 to read as follows: 3-30 Sec. 58.731. EXCLUSION OF CERTAIN NONIRRIGATED LAND. The 3-31 board may exclude from the district land that is not being 3-32 irrigated as provided by Sections 51.759 through 51.766. This 3-33 section applies only to land that is eligible for exclusion under 3-34 Section 51.759. 3-35 SECTION 4. The importance of this legislation and the 3-36 crowded condition of the calendars in both houses create an 3-37 emergency and an imperative public necessity that the 3-38 constitutional rule requiring bills to be read on three several 3-39 days in each house be suspended, and this rule is hereby suspended, 3-40 and that this Act take effect and be in force from and after its 3-41 passage, and it is so enacted. 3-42 * * * * *