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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of urban property from irrigation |
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districts and subsequent water use. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1(1), Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), is amended to read as follows: |
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(1) "Urban property" means land that has been |
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subdivided into town lots, or town lots and blocks, or small parcels |
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of the same general nature of town lots, or town blocks and lots, |
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designed, intended, or suitable for residential or other |
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nonagricultural purposes, as distinguished from farm acreage, |
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including streets, alleys, parkways, parks, and railroad property |
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and rights-of-way within that subdivided land and that is in a |
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subdivision: |
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(A) that is within the corporate limits or |
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extraterritorial jurisdiction of a city that has subdivision |
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approval jurisdiction under Chapter 42, 43, or 212, Local |
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Government Code; |
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(B) [the Municipal Annexation Act (Article 970a,
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Vernon's Texas Civil Statutes), or Chapter 231, Acts of the 40th
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Legislature, Regular Session, 1927 (Article 974a, Vernon's Texas
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Civil Statutes), and] for which a plat or map of the subdivision |
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has been filed and recorded in the office of the county clerk of the |
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county in which the subdivision or any part of the subdivision is |
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located; and |
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(C) that is under a certificate of public |
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convenience and necessity issued by the applicable state agency or |
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within the service area of another municipal supplier. |
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SECTION 2. Section 2, Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), is amended to read as follows: |
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Sec. 2. EXCLUSION OF URBAN PROPERTY. Urban property |
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located within the boundaries of a district may be excluded from the |
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district by the board of directors in the manner and on the |
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conditions provided by this Act. Urban property may be excluded |
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only after the following have been paid to the district: |
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(1) all taxes, assessments, and other lawful charges |
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of the district accrued on the property to be excluded, together |
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with all lawful interest and penalties accrued on those taxes, |
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assessments, and charges; and |
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(2) the proportionate part of the outstanding bonded |
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indebtedness or indebtedness in connection with a loan from an |
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authorized agency of the United States for which the property |
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proposed to be excluded is liable, as determined under this Act[;
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and
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[(3) agreement on a reasonable determined amount to be
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paid by the city or other supplier of potable water to compensate
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the district for loss of revenue occasioned by the said exclusion]. |
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SECTION 3. Section 3, Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), is amended by adding Subsection (a-1) and amending |
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Subsections (b) and (d) to read as follows: |
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(a-1) The owners, or the owners at the time of subdivision |
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of the property, may designate the city or other municipal supplier |
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serving the property with potable water as the agent to sign and |
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file the application. |
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(b) The application must: |
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(1) include a sworn acknowledgment describing [by the
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owner or owners of the property;
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[(2)describe] the property to be excluded by |
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identifying the lot or block number of the subdivision and the name |
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or designation of the subdivision as shown on the recorded plat of |
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the subdivision, or by some other method of identification; and |
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(2) [(3)] state that the property is used or intended |
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to be used for the purposes for which it was subdivided, and that |
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the property is not used or intended to be used, in whole or in part, |
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for agricultural purposes. |
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(d) The applicant shall also furnish to the district |
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evidence [satisfactory to, or required by, the board of directors] |
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of the applicant's ownership of or the agent's authority for the |
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property proposed to be excluded[, and of the right of the applicant
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to have the property excluded] from the district. |
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SECTION 4. Section 4, Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), is amended to read as follows: |
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Sec. 4. CONSIDERATION OF APPLICATION. (a) As soon as |
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practicable after the filing of the application, the board of |
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directors of the district shall consider the application [and
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inquire into all the facts relating to the application considered
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by the board to be necessary to a determination of whether a public
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hearing on the application should be held]. |
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(b) If [After consideration and investigation, if] the |
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board finds that all taxes, assessments, and charges of the |
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district on the property, and interest and penalties on those |
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amounts, due to the district up to the date of the filing of the |
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application, have been paid, that the property described in the |
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application is owned by the applicant or that an authorized agent |
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has been appointed, that the property is urban property[,] and is |
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not used or intended to be used for agricultural purposes but will |
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require a source of treated potable water from the city or other |
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municipal provider in the service area of which the subdivision is |
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located, and that the exclusion of the property will not cut off the |
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district or its facilities from ready and convenient access to |
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other land remaining in the district for irrigation or other |
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district purposes, the board shall pass an order approving [further
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consideration of] the application. If the board adopts [is unable
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to make any one of these findings, it shall adopt] a resolution |
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rejecting the application, [and] the resolution of the board |
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rejecting the application is appealable under Section 49.308, Water |
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Code [final and not subject to review by any other body, tribunal,
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or authority]. |
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(c) If the board approves [further consideration of] the |
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application, it shall proceed to determine the proportionate amount |
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of the bonded or contractual indebtedness for which the property to |
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be excluded is liable as provided by Subsection (d) of this section. |
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(d) If the district has outstanding bonded indebtedness, |
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the board shall obtain from the chief appraiser a certified copy of |
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the appraised value of all the property to be excluded for the five |
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years immediately preceding the year in which the application is |
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filed, as shown by the tax rolls of the district, and the appraised |
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value of all taxable property in the district according to the most |
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recent tax rolls of the district. The part of the total outstanding |
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bonded indebtedness of the district to be paid by the applicant as a |
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condition precedent to the exclusion of the property is that |
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proportion of the indebtedness, including unpaid interest computed |
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to the date of the order, that the appraised value of the property |
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to be excluded bears to the appraised value of all taxable property |
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in the district according to the most recent tax rolls. If the |
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district has contractual or other indebtedness being repaid on the |
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benefit tax basis, the board shall obtain from the appropriate |
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records the manner in which the tax is assessed, and from those |
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records the district shall calculate the part of the total |
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outstanding indebtedness of the district remaining to be paid |
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attributable to the property to be excluded. The final order of the |
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board approving exclusion [further consideration of the
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application] also shall state the amounts required to be paid under |
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[by] Section 2 of this Act as a condition of the exclusion of the |
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property. |
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SECTION 5. Section 5, Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), is amended to read as follows: |
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Sec. 5. FINAL BOARD ORDER [FURTHER PROCEEDINGS ON
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APPLICATION]. (a) The final order of the board excluding the |
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property does not take effect [approving further consideration of
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the application has no force or effect, and no further proceeding
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may be held on the application] unless the applicant, on or before |
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the 20th day [within 20 days] after the date of adoption of the |
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final order [or within a period of up to 30 days after adoption of
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the order as ordered by the board], deposits with the district the |
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amounts due under Section 2 of this Act. |
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(b) The district shall record in the deed records in the |
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county in which the excluded property is located a copy of the order |
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excluding urban property from the district, certified by the |
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secretary of the board of directors, as evidence of the exclusion. |
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(c) On the passage of the order, the property excluded does |
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not constitute a part of the district, and the owner of the |
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property: |
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(1) has no further liability to the district; |
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(2) has no further liability for any bonded or other |
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indebtedness of the district; and |
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(3) is not subject to further taxation by the |
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district. |
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(d) For the purpose of servicing land remaining in the |
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district, the district retains full rights to maintain and operate |
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any canals, ditches, pipelines, pumps, or other facilities of the |
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district located on land excluded by the order. |
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SECTION 6. Section 8, Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), is amended to read as follows: |
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Sec. 8. WATER RIGHTS. If [After] the district, under this |
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Act or any other law, excludes urban land from its boundaries [that
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lies within the corporate boundaries or extraterritorial
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jurisdiction of any city], the city or other municipal supplier who |
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proposes to serve the land with a potable water supply may petition |
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the district to convert the proportionate water rights previously |
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allocated for the land from irrigation use rights to municipal use |
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rights for the use and benefit of the city or other municipal |
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supplier. The district shall compute the proportionate water |
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rights available and shall proceed with appropriate administrative |
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proceedings to convert the irrigation use rights to municipal use |
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rights. However, the city or other municipal supplier shall |
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deposit with the district the amount that the district estimates |
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will be its reasonable expenses and attorney's fees incurred in |
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those administrative proceedings before the district is obligated |
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to initiate the administrative proceedings. On approval of the |
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conversion by the Texas [Water] Commission on Environmental |
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Quality, the water shall be delivered to the city or other municipal |
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supplier by the district in the manner those entities may agree to |
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under the Water Code or under an existing contract between the |
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district and the city or other municipal supplier. |
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SECTION 7. Sections 6 and 7, Chapter 707, Acts of the 69th |
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Legislature, Regular Session, 1985 (Article 973c, Vernon's Texas |
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Civil Statutes), are repealed. |
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SECTION 8. The changes in law made by this Act apply to an |
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administrative proceeding under Section 8, Chapter 707, Acts of the |
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69th Legislature, Regular Session, 1985 (Article 973c, Vernon's |
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Texas Civil Statutes), as amended by this Act, that is initiated on |
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or after the effective date of this Act. An administrative |
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proceeding under that section that is in progress on the effective |
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date of this Act is governed by the law applicable to that |
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proceeding in effect immediately before the effective date, and |
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that law is continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2007. |