By:  Oliveira                                                     H.B. No. 2527


A BILL TO BE ENTITLED
AN ACT
relating to water allocations involving excluded irrigation land in areas which are within 30 miles of the Rio Grande and within 50 miles of the Laguna Madre. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Water Code Section 49.314, is amended to read as follows: Sec. 49.314. Water Allocations (a) After the district in a county within 30 miles of the Rio Grande and within 50 miles of the Laguna Madre adopts an order excluding property, whether such exclusion took place under the Water Code or under Article 8280-3.2 or under Article 8280-3.5 or under Article 973c since its adoption or any subsequent amendment, or any other exclusion statute granting to a district the right to exclude land if such exclusion occurred after the effective date of such other exclusion statute, a city or water supply corporation that serves the excluded land with a potable water supply may petition the district to apply to the commission to convert the proportionate irrigation water right previously associated with the excluded land from irrigation use to municipal use for the use and benefit of the city or water supply corporation. The district shall compute the proportionate amount of water rights that are associated with the land and shall proceed with appropriate administrative proceedings to convert the irrigation use to municipal use. of the land excluded as non-irrigated property, as determined by the district, from irrigation use to municipal use allocation. The city or water supply corporation shall have the right to appeal the district's computation of the proportionate amount of water rights that are associated with the land. (b) The district shall make such application to the commission within 30 days of the filing of a petition by the city or water supply corporation that serves the land with a potable water supply provided the city or other water supply corporation pays the district the amount the district estimates will its reasonable expenses and attorneys fees incurred in the commission conversion proceedings and enters into an agreement with the district setting forth the basis on which the water allocation shall be delivered, or made available, to the city or water supply corporation covering such terms as the entities may agree to, and in the event the parties cannot agree, such dispute shall not be subject to the jurisdiction of the commission, or its successors, under this code but subject to resolution through alternative dispute resolution. and the district shall provide to the city or water supply corporation with an estimate of the district's reasonable costs in proceeding with appropriate administrative proceedings to convert the irrigation use to municipal use and the amount of the estimate shall be deposited with the district before the district is obligated to initiate the administrative proceedings. In such commission proceeding, the city or water supply corporation shall provide evidence to the commission of the current or projected need within a five year period for the municipal-use water allocation after such conversion as a condition of such conversion of use of the district's water rights from irrigation use to municipal use. (c) On approval of the conversion by the Commission, the water shall be supplied to the city or water supply corporation by the district and the district will charge a just and reasonable amount for this supply. The amount shall not be unreasonably preferential, prejudicial, or discriminatory but shall be sufficient, equitable, and consistent for the supply of water based on the cost of the district's services. The amount of the district's charge may be appealed to the commission by the city or water supply corporation. SECTION 2. This Act takes effect September 1, 2005.