Amend CSHB 1541 on page 14, between lines 24 and 25, by 
inserting the following appropriately numbered section and 
renumbering subsequent sections accordingly:
	SECTION __.  Subchapter H, Chapter 54, Water Code, is amended 
by adding Sections 54.748 and 54.749 to read as follows:
	Sec. 54.748.  EXCLUSION OF LAND FOR FAILURE TO PROVIDE 
SUFFICIENT SERVICES; BONDS OUTSTANDING.  (a)  This section applies 
only to a district that has a total area of more than 5,000 acres.
	(b)  The board shall call a hearing on the exclusion of land 
from the district on a written petition filed with the secretary of 
the board by a landowner whose land has been included in and taxable 
by the district for more than 28 years if any bonds issued by the 
district payable in whole or in part from taxes of the district are 
outstanding and the petition:
		(1)  includes a signed petition evidencing the consent 
of the owners of a majority of the acreage proposed to be excluded, 
as reflected by the most recent certified tax roll of the district;
		(2)  includes a claim that the district has not 
provided the land with utility services;
		(3)  describes the property to be excluded;                            
		(4)  provides, at the petitioner's expense, facts 
necessary for the board to make the findings required by Subsection 
(c); and
		(5)  is filed before August 31, 2005.                                  
	(c)  The board may exclude land under this section only on 
finding that:
		(1)  the district has never provided utility services 
to the land described by the petition;
		(2)  the district has imposed a tax on the land for more 
than 28 years;
		(3)  all taxes the district has levied and assessed 
against the land and all fees and assessments the district has 
imposed against the land or the owner that are due and payable on or 
before the date of the petition are fully paid; and
		(4)  the executive director has reviewed the economic 
impact of the proposed exclusion of land and does not oppose the 
exclusion.
	(d)  If evidence presented at the hearing conclusively 
demonstrates that the requirements and grounds for exclusion 
described by Subsections (b) and (c) have been met, the board may 
enter an order excluding the land from the district.  If the board 
enters an order excluding the land, the board shall redefine in the 
order the boundaries of the district to embrace all land not 
excluded.
	(e)  A copy of an order excluding land and redefining the 
boundaries of the district shall be filed in the deed records of the 
county in which the district is located.
	(f)  The exclusion of land under this section does not impair 
the rights of holders of any outstanding bonds, warrants, or other 
certificates of indebtedness of the district.
	(g)  After any land is excluded under this section, the 
district may issue any unissued additional debt approved by the 
voters of the district before exclusion of the land under this 
section without holding a new election.  Additional debt issued 
after land is excluded from the district may not be payable from and 
does not create a lien against the taxable value of the excluded 
land.
	(h)  For purposes of this section and Section 54.749, "land" 
includes any improvements to the land, and when used in the context 
of property taxes, "land" has the meaning assigned to "real 
property" by Section 1.04, Tax Code.
	Sec. 54.749.  TAX LIABILITY OF EXCLUDED LAND; BONDS 
OUTSTANDING.  (a)  Land excluded from the district under Section 
54.748 that is pledged as security for any outstanding debt of the 
district remains pledged for its pro rata share of the debt until 
final payment is made.  The district shall continue to levy and 
collect taxes on the excluded land at the same rate levied on land 
remaining in the district until the amount of taxes collected from 
the excluded land equals the land's pro rata share of the district's 
debt outstanding at the time the land was excluded from the 
district.
	(b)  The district shall apply the taxes collected on the 
excluded land only to the payment of the excluded land's pro rata 
share of the debt.