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S.B. No. 542
AN ACT
relating to exclusion of land from certain water districts for
failure to provide facilities and services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter J, Chapter 49, Water Code, is amended
by adding Sections 49.3075, 49.3076, and 49.3077 to read as
follows:
Sec. 49.3075. EXCLUSION FOR FAILURE TO PROVIDE SUFFICIENT
SERVICES; NO OUTSTANDING BONDS. (a) The board shall call a hearing
on the exclusion of land from a 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 20 years if
any bonds issued by the district payable in whole or in part from
taxes of the district are no longer 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 met the
landowner's proposals and requests for facilities and services
sufficient to service the land at full development; and
(3) describes the property to be excluded.
(b) The board shall hold the hearing at the earliest
practicable time after receipt of the petition.
(c) Unless the district presents evidence at the hearing
that conclusively demonstrates that the requirements and grounds
for exclusion described by Subsection (a) have not been met, the
board shall enter an order excluding the land from the district and
shall redefine in the order the boundaries of the district to
embrace all land not excluded.
(d) A copy of an order excluding land and redefining the
boundaries of the district shall be filed in the deed records of
each county in which the district is located.
(e) This section does not apply to irrigation districts
governed by Chapter 58.
Sec. 49.3076. EXCLUSION FOR FAILURE TO PROVIDE SUFFICIENT
SERVICES; BONDS OUTSTANDING. (a) The board of a district that has
a total area of more than 5,000 acres 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 facts necessary for the board to make the
findings required by Subsection (b); and
(5) is filed before August 31, 2005.
(b) The board of a district 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; and
(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.
(c) Unless the district presents evidence at the hearing
that conclusively demonstrates that the requirements and grounds
for exclusion described by Subsections (a) and (b) have not been
met, the board shall enter an order excluding the land from the
district and shall redefine in the order the boundaries of the
district to embrace all land not excluded.
(d) A copy of an order excluding land and redefining the
boundaries of the district shall be filed in the deed records of
each county in which the district is located.
(e) 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.
(f) 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.
(g) This section does not apply to irrigation districts
governed by Chapter 58.
(h) For purposes of this section and Section 49.3077, "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. 49.3077. TAX LIABILITY OF EXCLUDED LAND; BONDS
OUTSTANDING. (a) Land excluded from a district under Section
49.3076 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.
(c) The owner of any part of the excluded land may pay in
full the owner's share of the pro rata share of the district's debt
outstanding at the time the land is excluded.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 542 passed the Senate on
March 27, 2003, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendment on May 23, 2003, by the
following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 542 passed the House, with
amendment, on May 16, 2003, by the following vote: Yeas 142,
Nays 1, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor