78(R) SB 542 - House Committee Report version

This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.


                                                                                
78R10479 RCJ-F


By:  Lindsay                                                      S.B. No. 542

Substitute the following for S.B. No. 542:                                    

By:  Puente                                                   C.S.S.B. No. 542



A BILL TO BE ENTITLED

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.