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.
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