SLC C.S.H.B. 2654 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT C.S.H.B. 2654 By: Keel 4-18-97 Committee Report (Substituted) BACKGROUND Subchapter L, Chapter 51, Water Code, relates to the taxation of property and construction of utilities and other improvements in a water control and improvement district (WCID). Sec. 51.518 of Subchapter L requires the WCID board to define the area within the district that will be taxed, and adopt a plan for constructing improvements within the defined area. However, Sec. 51.518 does not provide procedures for enlargement of an existing defined area within which taxes already have been imposed and improvements are being constructed. The lack of prescribed procedures can be an obstacle to landowners who wish to be added to a defined area and be served by district facilities. PURPOSE HB 2654 will allow a land owner, whether inside or outside the boundaries of the WCID, to petition for inclusion in an existing defined area. In deciding whether to add property to the defined area, the WCID board must determine that inclusion of the property is practical and to the advantage of the defined area. Further, the board may require the petitioner to assume a portion of the indebtedness of the defined area. Upon approval by the board of the district, the land would be added to the defined area, subject to taxation, and provided with improvements. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter L, Chapter 51, Water Code, by adding Section 51.530a as follows: Sec. 51.530a. (a) Provides that the owner of land subject to a water quality plan approved by the commission may file with the board a petition requesting that the owner's land, whether contiguous or not to the defined area, be included within a defined area previously established pursuant to Sec. 51.518 of this Code. (b) Provides that if the defined area has bonds or other obligations outstanding, or bonds payable from taxes that have been voted but are unissued for the defined area, the board may require the petitioner to assume the petitioner's share of the outstanding bonds or other obligations and the voted but unissued tax bonds of the defined area and authorize the board to levy a tax on the petitioner's property in each year in which any of the bonds or other obligations payable from taxation on the defined area are outstanding to pay the petitioner's share of the indebtedness. (c) Provides that a petition of a landowner to add land to the defined area shall be signed and executed in the manner provided by law for the conveyance of real estate. (d) Provides that the board shall hear and consider the petition and may add to the defined area the land described in the petition if it is feasible, practicable, and to the advantage of the defined area and if the defined area's improvements are sufficient or will be sufficient to supply the added land without injuring land already in the defined area. (e) Provides that if the defined area has bonds payable from taxation of a defined area that are voted but unissued at the time of annexation and the petitioners assume the bonds and authorize the district to levy a tax on their property to pay the bonds of the defined area, then the board may issue the voted but unissued bonds even though the boundaries of the defined area have been altered since the authorization of the bonds. (f) Provides that the granted petition shall be filed for record and be recorded in the office of the county clerk of the county or counties in which the added land is located. SECTION 2. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 2654 inserts language in Sec. 51.530a(a), Water Code, that reads as follows, "subject to a water quality plan approved by the commission." The original legislation did not contain this language. The remaining provisions in CSHB 2654 are the same as the filed version.