1-1     By:  Cook (Senate Sponsor - Lucio)                    H.B. No. 2689

 1-2           (In the Senate - Received from the House April 21, 1997;

 1-3     April 23, 1997, read first time and referred to Committee on

 1-4     Natural Resources; May 8, 1997, reported favorably by the following

 1-5     vote:  Yeas 9, Nays 0; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to estimates of, and delinquent assessments for,

 1-9     maintenance and operating expenses in certain water districts.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Sections 51.304, 51.310, and 51.313, Water Code,

1-12     are amended to read as follows:

1-13           Sec. 51.304.  BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING

1-14     EXPENSES.  The board, on or as soon as practicable after a date

1-15     fixed by standing order of the board, shall estimate the expenses

1-16     of maintaining and operating the irrigation system for the next 12

1-17     months.  The board may change the 12-month period for which it

1-18     estimates the expenses of maintaining and operating the irrigation

1-19     system by estimating such expenses for a shorter period so as to

1-20     adjust to a new fixed date and thereafter estimating the expenses

1-21     for 12-month periods following the adjusted fixed date.

1-22           Sec. 51.310.  LIST OF DELINQUENT ASSESSMENTS.  Assessments

1-23     not paid when due shall become delinquent on the first day of the

1-24     month following the date payment [Within 10 days after any

1-25     assessment] is due, and the board shall post in a public place in

1-26     the district a list of all persons who are delinquent in paying

1-27     their assessments and shall keep posted a correct list of all

1-28     persons who are delinquent in paying assessments.  If a person who

1-29     owes an assessment has executed a note and contract as provided in

1-30     Section 51.302 of this code, he shall not be placed on the

1-31     delinquent list until after the maturity of the note and contract.

1-32           Sec. 51.313.  INTEREST AND COLLECTION FEES.  (a)  All

1-33     assessments shall bear interest from the date payment is due at the

1-34     rate of 15 percent a year.  Assessments not paid by the first day

1-35     of the month following the date payment is due shall become

1-36     delinquent, and a penalty of up to 15 percent of the amount of the

1-37     past-due assessment shall be added to the amount due.

1-38           (b)  If suit is filed to foreclose a lien on crops or if a

1-39     delinquent assessment is collected by an attorney before or after

1-40     suit [any legal proceeding], an additional amount of 15 percent on

1-41     the unpaid assessment, penalty, [principal] and interest shall be

1-42     added as collection or attorney's fees.

1-43           SECTION 2.  Sections 55.352, 55.360, and 55.363, Water Code,

1-44     are amended to read as follows:

1-45           Sec. 55.352.  BOARD'S ESTIMATE OF [ASSESSMENTS FOR]

1-46     MAINTENANCE AND OPERATING EXPENSES.  The board, on or as soon as

1-47     practicable after a date fixed by standing order of the board,

1-48     shall estimate the expenses of maintaining and operating the

1-49     irrigation system for the next 12 months.  The board may change the

1-50     12-month period for which it estimates the expenses of maintaining

1-51     and operating the irrigation system by estimating such expenses for

1-52     a shorter period so as to adjust to a new fixed date and thereafter

1-53     estimating the expenses for 12-month periods following the adjusted

1-54     fixed date.

1-55           Sec. 55.360.  List of Delinquent Assessments.  Assessments

1-56     not paid when due shall become delinquent on the first day of the

1-57     month following the date payment [Within 10 days after any

1-58     assessment] is due, and the board shall post in a public place in

1-59     the district a list of all persons who are delinquent in paying

1-60     their assessments and shall keep posted a correct list of all

1-61     delinquent assessments.  If persons who owe assessments have

1-62     executed notes and contracts as provided in Section 55.358 of this

1-63     code, they shall not be placed on the delinquent list until after

1-64     the maturity of the notes and contracts.

 2-1           Sec. 55.363.  Interest and Collection Fees.  (a)  All

 2-2     assessments shall bear interest from the date payment is due at the

 2-3     rate of 15 [10] percent a year.  Assessments not paid by the first

 2-4     day of the month following the date payment is due shall become

 2-5     delinquent, and a penalty of up to 15 percent of the amount of the

 2-6     past-due assessment shall be added to the amount due.

 2-7           (b)  If suit is filed to foreclose a lien on crops or if a

 2-8     delinquent assessment is collected by an attorney before or after

 2-9     suit [any legal proceeding], an additional amount of 15 [10]

2-10     percent on the unpaid assessment, penalty, [principal] and interest

2-11     shall be added as collection or attorney's fees.

2-12           SECTION 3.  Sections 58.304, 58.310, and 58.313, Water Code,

2-13     are amended to read as follows:

2-14           Sec. 58.304.  BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING

2-15     [OPERATION] EXPENSES.  The board, on or as soon as practicable

2-16     after a date fixed by standing order of the board, shall estimate

2-17     the expenses of maintaining and operating the irrigation system for

2-18     the next 12 months.  The board may change the 12-month period for

2-19     which it estimates the expenses of maintaining and operating the

2-20     irrigation system by estimating such expenses for a shorter period

2-21     so as to adjust to a new fixed date and thereafter estimating the

2-22     expenses for 12-month periods following the adjusted fixed date.

2-23           Sec. 58.310.  List of Delinquent Assessments.  Assessments

2-24     not paid when due shall become delinquent on the first day of the

2-25     month following the date payment [Within 10 days after any

2-26     assessment] is due, and the board shall post in a public place in

2-27     the district a list of all persons who are delinquent in paying

2-28     their assessments and shall keep posted a correct list of all

2-29     persons who are delinquent in paying assessments.  If a person who

2-30     owes an assessment has executed a note and contract as provided in

2-31     Section 58.302 of this code, he shall not be placed on the

2-32     delinquent list until after the maturity of the note and contract.

2-33           Sec. 58.313.  Interest and Collection Fees.  (a)  All

2-34     assessments shall bear interest from the date payment is due at the

2-35     rate of 15 [10] percent a year.  Assessments not paid by the first

2-36     day of the month following the date payment is due shall become

2-37     delinquent, and a penalty of up to 15 percent of the amount of the

2-38     past-due assessment shall be added to the amount due.

2-39           (b)  If suit is filed to foreclose a lien on crops or if a

2-40     delinquent assessment is collected by an attorney before or after

2-41     suit [any legal proceeding], an additional amount of 15 [10]

2-42     percent on the unpaid assessment, penalty, [principal] and interest

2-43     shall be added as collection or attorney's fees.

2-44           SECTION 4.  The importance of this legislation and the

2-45     crowded condition of the calendars in both houses create an

2-46     emergency and an imperative public necessity that the

2-47     constitutional rule requiring bills to be read on three several

2-48     days in each house be suspended, and this rule is hereby suspended,

2-49     and that this Act take effect and be in force from and after its

2-50     passage, and it is so enacted.

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