By: Lucio S.B. No. 611

(In the Senate - Filed February 18, 2013; February 25, 2013, read first time and referred to Committee on Natural Resources; March 27, 2013, reported favorably by the following vote: Yeas 10, Nays 0; March 27, 2013, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the irrigation powers and functions of certain water districts.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (a), Section 51.301, Water Code, is amended to read as follows:

(a) If required by the board, each [Each] person who desires to receive irrigation water at any time during the year shall furnish the secretary of the board a written statement of the acreage the person [he] intends to irrigate and the different crops the person [he] intends to plant with the acreage of each crop.

SECTION 2. Section 51.302, Water Code, is amended to read as follows:

Sec. 51.302. CONTRACTS WITH PERSON USING IRRIGATION WATER. (a) The board may require each person who desires to use irrigation water during the year to enter into a contract with the district which states the acreage to be irrigated [watered], the crops to be planted, the amount to be paid for the water, and the terms of payment.

(b) If a person irrigates more acreage [land] than the person's [his] contract specifies, the person [he] shall pay for the additional service.

(c) The directors also may require a person using irrigation water to execute a negotiable note or notes for all or part of the amount owed under the contract.

(d) The contract is not a waiver of the lien given to the district under Section 51.309 [of this code] against the crops of a person using irrigation water for the service furnished to the person [him].

SECTION 3. Section 51.303, Water Code, is amended to read as follows:

Sec. 51.303. AUTHORITY TO DETERMINE RULES AND REGULATIONS. The board may adopt, alter, and rescind rules, regulations, and standing and temporary orders which do not conflict with the provisions of this subchapter and which govern:

(1) methods, terms, and conditions of water service;

(2) applications for water;

(3) assessments, charges, fees, rentals, or deposits for maintenance and operation;

(4) payment and the enforcement of payment of the assessments, charges, fees, rentals, or deposits;

(5) furnishing irrigation water to persons who did not apply for it before the date of assessment if required; and

(6) furnishing water to persons who wish to take water for irrigation in excess of their original applications or for use on land not covered by their original applications if required.

SECTION 4. Section 51.304, Water Code, is amended to read as follows:

Sec. 51.304. BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING EXPENSES. The board, on or as soon as practicable after a date fixed by standing order of the board, shall estimate the expenses of maintaining and operating the district's water delivery [irrigation] system for the next 12 months. The board may change the 12-month period for which it estimates the expenses of maintaining and operating the water delivery [irrigation] system by estimating such expenses for a shorter period so as to adjust to a new fixed date and thereafter estimating the expenses for 12-month periods following the adjusted fixed date.

SECTION 5. Section 51.305, Water Code, is amended to read as follows:

Sec. 51.305. DISTRIBUTION OF ASSESSMENT. (a) The board by rule shall allocate a portion [Not less than one-third nor more than two-thirds] of the estimated maintenance and operating expenses that shall be paid by assessment against all land in the district to which the district can furnish irrigation water through its water delivery [irrigation] system or through an extension of its water delivery [irrigation] system. This assessment shall be levied against all irrigable land in the district on a per acre basis, whether or not the land is actually irrigated.

(b) [The assessments shall be levied against all irrigable land in the district on a per acre basis, whether or not the land is actually irrigated.] The board shall determine from year to year the proportionate amount of the expenses which will be borne by all water users receiving water delivery from the district.

(c) The remainder of the estimated expenses shall be paid by assessments, charges, fees, rentals, or deposits required of [against] persons in the district who use or who make application to use water and other charges approved by the board. The board shall prorate the remainder [as equitably as possible] among the applicants for irrigation water and may consider:

(1) the acreage each applicant will plant, the crop the applicant [he] will grow, and the amount of water per acre used for irrigation purposes; and

(2) other factors deemed appropriate by the board with respect to water used for other nonirrigation uses [he will use].

SECTION 6. Section 51.306, Water Code, is amended to read as follows:

Sec. 51.306. NOTICE OF ASSESSMENTS. (a) Public notice of all assessments imposed under Section 51.305(a) shall be given by posting printed notice [notices] of the assessment in at least one [three] public place [places] in the district.

(b) Not later than the fifth day before the date on which the assessment is due, notice [Notice] shall be mailed to each landowner at the address which the landowner shall furnish to the board.

(c) Notice [The notice shall be posted in a public place and mailed to each landowner five days before the assessment is due, and notice] of special assessments shall be given within 10 days after the assessment is levied.

SECTION 7. Subsection (a), Section 51.307, Water Code, is amended to read as follows:

(a) All assessments imposed under Section 51.305(a) shall be paid in installments at the times fixed by the board.

SECTION 8. Subsections (a), (b), and (c), Section 51.308, Water Code, are amended to read as follows:

(a) Under the direction of the board, the assessor and collector, or other person designated by the board, shall collect all assessments imposed under Section 51.305(a) for maintenance and operating expenses.

(b) The assessor and collector shall execute a bond in an amount determined by the board, conditioned on the faithful performance of the [his] duties of the assessor and collector and accounting for all money collected.

(c) The assessor and collector shall keep an account of all money collected and shall deposit the money as collected in the district depository. The assessor and collector [He] shall file with the secretary of the board a statement of all money collected once each month [week].

SECTION 9. Section 51.309, Water Code, is amended to read as follows:

Sec. 51.309. LIEN AGAINST CROPS. The district shall have a first lien, superior to all other liens, against all crops grown on a [each] tract of land in the district to secure the payment of an [the] assessment imposed against the tract under Section 51.305(a), interest, and collection or attorney's fees.

SECTION 10. Section 51.310, Water Code, is amended to read as follows:

Sec. 51.310. LIST OF DELINQUENT ASSESSMENTS. Assessments imposed under Section 51.305(a) not paid when due shall become delinquent on the first day of the month following the date payment is due, and the board shall [post in a public place in the district a list of all persons who are delinquent in paying their assessments and shall] keep posted in a public place in the district a correct list of all persons who are delinquent in paying assessments. If a person who owes an assessment has executed a note and contract as provided in Section 51.302, the person may [of this code, he shall] not be placed on the delinquent list until after the maturity of the note and contract.

SECTION 11. Section 51.311, Water Code, is amended to read as follows:

Sec. 51.311. WATER SERVICE DISCONTINUED. If a landowner fails or refuses to pay a water assessment or a person fails to pay a charge, fee, rental, or deposit imposed under this subchapter or Chapter 49 when due, the landowner's or person's [his] water supply shall be cut off, and no water may be furnished to the land until all back assessments or other amounts owed to the district are fully paid. The discontinuance of water service is binding on all persons who own or acquire an interest in land for which assessments or other amounts owed to the district are due.

SECTION 12. Section 51.312, Water Code, is amended to read as follows:

Sec. 51.312. SUITS FOR DELINQUENT ASSESSMENTS. Suits for delinquent water assessments or other amounts owed to the district under this subchapter [assessment] may be brought either in the county in which the district is located or in the county in which the defendant resides. All landowners are personally liable for assessments imposed under Section 51.305(a) [provided in this subchapter].

SECTION 13. Subsection (a), Section 51.313, Water Code, is amended to read as follows:

(a) All assessments imposed under Section 51.305(a) shall bear interest from the date payment is due at the rate of 15 percent a year. Assessments not paid by the first day of the month following the date payment is due are [shall become] delinquent, and a penalty of up to 15 percent of the amount of the past-due assessment shall be added to the amount due.

SECTION 14. Section 55.351, Water Code, is amended to read as follows:

Sec. 55.351. STATEMENT ESTIMATING WATER REQUIREMENTS AND PAYMENT OF CHARGE. (a) If required by the board, each [Each] person desiring to receive irrigation water at any time during the year shall furnish the secretary of the board a written statement of the acreage the person [he] intends to irrigate and the different crops the person [he] intends to plant with the acreage of each crop.

(b) At the time the acreage estimate is furnished to the secretary, each person applying for water shall pay the portion of the water charge or assessment set by the board for immediate payment.

(c) If a [any] person applying for water from the district does not furnish the statement of estimated acreage or does not pay the part of the water charge or assessment set by the board before the date for fixing the assessment, the district is not obligated to furnish water to that person during that year.

SECTION 15. Section 55.352, Water Code, is amended to read as follows:

Sec. 55.352. BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING EXPENSES. The board, on or as soon as practicable after a date fixed by standing order of the board, shall estimate the expenses of maintaining and operating the district's water delivery [irrigation] system for the next 12 months. The board may change the 12-month period for which it estimates the expenses of maintaining and operating the water delivery [irrigation] system by estimating such expenses for a shorter period so as to adjust to a new fixed date and thereafter estimating the expenses for 12-month periods following the adjusted fixed date.

SECTION 16. Section 55.354, Water Code, is amended to read as follows:

Sec. 55.354. DISTRIBUTION OF ASSESSMENT. (a) The board by rule shall allocate a portion [Not less than one-third nor more than two-thirds] of the estimated maintenance and operating expenses that shall be paid by assessment against all land in the district to which the district can furnish irrigation water through its water delivery [irrigation] system or through an extension of its water delivery [irrigation] system. This assessment [The assessments] shall be levied against all irrigable land in the district on a per acre basis, whether or not the land is actually irrigated.

(b) The board shall determine from year to year the proportionate amount of the expenses which will be borne by all water users receiving water delivery from the district [under this subsection].

(c) [(b)] The remainder of the estimated expenses shall be paid by assessments, charges, fees, rentals, and deposits required of [against] persons in the district who use or who make application to use water and other charges approved by the board. The board shall prorate the remainder [as equitably as possible] among the applicants for irrigation water and may consider:

(1) the acreage each applicant will plant, the crop the applicant [he] will grow, and the amount of water per acre used for irrigation purposes; and

(2) other factors deemed appropriate by the board with respect to water used for other nonirrigation uses [he will use].

(d) All persons using irrigation water to plant the same crop will pay the same price per acre for the water.

SECTION 17. Section 55.355, Water Code, is amended to read as follows:

Sec. 55.355. NOTICE OF ASSESSMENTS. (a) Public notice of all assessments imposed under Section 55.354(a) shall be given by posting printed notice [notices] of the assessment in at least one [three] public place [places] in the district.

(b) Not later than the fifth day before the date on which the assessment is due, notice [Printed notices] shall be mailed to each landowner at the address which the landowner shall furnish to the board.

(c) Notice [The notice shall be posted in a public place and mailed to the landowner five days before the assessment is due, and notice] of special assessments shall be given within 10 days after the assessment is levied.

SECTION 18. Section 55.356, Water Code, is amended to read as follows:

Sec. 55.356. PAYMENT OF ASSESSMENTS. (a) All assessments imposed under Section 55.354(a) shall be paid in installments at the times fixed by the board.

(b) If a crop for which water was furnished by the district is harvested before the due date of any installment payment, the entire unpaid assessment becomes due at once and shall be paid within 10 days after the crop is harvested and before the crop is removed from the county or counties in which it was grown.

SECTION 19. Section 55.357, Water Code, is amended to read as follows:

Sec. 55.357. COLLECTION OF ASSESSMENTS BY TAX ASSESSOR AND COLLECTOR. (a) Under the direction of the board, the assessor and collector of taxes, or other person designated by the board, shall collect all assessments imposed under Section 55.354(a) for maintenance and operating expenses made under the provisions of this subchapter.

(b) The assessor and collector of taxes shall give bond in an amount determined by the board, conditioned upon the faithful performance of the [his] duties of the assessor and collector and accounting for all money collected.

(c) The assessor and collector of taxes shall keep an account of all money collected and shall deposit the money as collected in the district depository. The assessor and collector [He] shall file with the secretary of the board a statement of all money collected once each month [week].

(d) The assessor and collector [He] shall use duplicate receipt books, give a receipt for each collection made, and retain in the book a copy of each receipt, which shall be kept as a record of the district.

SECTION 20. Section 55.358, Water Code, is amended to read as follows:

Sec. 55.358. CONTRACTS WITH PERSON USING IRRIGATION WATER. (a) The board may require each person who desires to use irrigation water during the year to enter into a contract with the district which states the acreage to be irrigated [watered], the crops to be planted, the amount to be paid for the water, and the terms of payment.

(b) The contract is not a waiver of the lien given to the district under Section 55.359 [of this code] against the crops of a person using irrigation water for the service furnished to the person [him].

(c) If a person irrigates more acreage [land] than the person's [his] contract specifies, the person [he] shall pay for the additional service [under the provisions of this subchapter].

(d) The directors also may require a person using irrigation water to execute a negotiable note or notes for all or part of the amount owed under the contract.

SECTION 21. Subsection (a), Section 55.359, Water Code, is amended to read as follows:

(a) The district shall have a first lien, superior to all other liens, against all crops grown on a [each] tract of land in the district to secure the payment of an assessment imposed against the tract under Section 55.354(a) [the assessments], interest, and collection or attorney's fees.

SECTION 22. Section 55.360, Water Code, is amended to read as follows:

Sec. 55.360. LIST OF DELINQUENT ASSESSMENTS. Assessments imposed under Section 55.354(a) not paid when due shall become delinquent on the first day of the month following the date payment is due, and the board shall [post in a public place in the district a list of all persons who are delinquent in paying their assessments and shall] keep posted in a public place in the district a correct list of all delinquent assessments. If a person who owes an assessment has [persons who owe assessments have] executed a note and contract [notes and contracts] as provided in Section 55.358, the person may [of this code, they shall] not be placed on the delinquent list until after the maturity of the note and contract [notes and contracts].

SECTION 23. Section 55.361, Water Code, is amended to read as follows:

Sec. 55.361. WATER SERVICE DISCONTINUED. If a landowner fails or refuses [shall fail or refuse] to pay any water assessment or a person fails to pay a charge, fee, rental, or deposit imposed under this subchapter or Chapter 49 when due, the landowner's or person's [his] water supply shall be cut off, and no water shall be furnished to the land until all back assessments or other amounts owed to the district are fully paid. The discontinuance of water service is binding on all persons who own or acquire any interest in land for which assessments or other amounts owed to the district are due.

SECTION 24. Section 55.362, Water Code, is amended to read as follows:

Sec. 55.362. SUITS FOR DELINQUENT ASSESSMENTS. Suits for delinquent water assessments or other amounts owed to the district under this subchapter may be brought either in the county in which the irrigation district is located or in the county in which the defendant resides. All landowners are personally liable for all assessments imposed under Section 55.354(a) [provided in this subchapter].

SECTION 25. Subsection (a), Section 55.363, Water Code, is amended to read as follows:

(a) All assessments imposed under Section 55.354(a) shall bear interest from the date payment is due at the rate of 15 percent a year. Assessments not paid by the first day of the month following the date payment is due are [shall become] delinquent, and a penalty of up to 15 percent of the amount of the past-due assessment shall be added to the amount due.

SECTION 26. Subsection (a), Section 58.301, Water Code, is amended to read as follows:

(a) If required by the board, each [Each] person who desires to receive irrigation water at any time during the year shall furnish the secretary of the board a written statement of the acreage the person [he] intends to irrigate and the different crops the person [he] intends to plant with the acreage of each crop.

SECTION 27. Section 58.302, Water Code, is amended to read as follows:

Sec. 58.302. CONTRACTS WITH PERSON USING IRRIGATION WATER. (a) The board may require each person who desires to use irrigation water during the year to enter into a contract with the district which states the acreage to be irrigated [watered], the crops to be planted, the amount to be paid for the water, and the terms of payment.

(b) If a person irrigates more acreage [land] than the person's [his] contract specifies, the person [he] shall pay for the additional service.

(c) The directors also may require a person using irrigation water to execute a negotiable note or notes for all or part of the amount owed under the contract.

(d) The contract is not a waiver of the lien given to the district under Section 58.309 [of this code] against the crops of a person using irrigation water for the service furnished to the person [him].

SECTION 28. Section 58.303, Water Code, is amended to read as follows:

Sec. 58.303. AUTHORITY TO DETERMINE RULES AND REGULATIONS. The board may adopt, alter, and rescind rules, and standing and temporary orders which do not conflict with the provisions of this subchapter and which govern:

(1) methods, terms, and conditions of water service;

(2) applications for water;

(3) assessments, charges, fees, rentals, or deposits for maintenance and operation;

(4) payment and the enforcement of payment of the assessments, charges, fees, rentals, or deposits;

(5) furnishing irrigation water to persons who did not apply for it before the date of assessment if required; and

(6) furnishing water to persons who wish to take water for irrigation in excess of their original applications or for use on land not covered by their original applications if required.

SECTION 29. Section 58.304, Water Code, is amended to read as follows:

Sec. 58.304. BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING EXPENSES. The board, on or as soon as practicable after a date fixed by standing order of the board, shall estimate the expenses of maintaining and operating the district's water delivery [irrigation] system for the next 12 months. The board may change the 12-month period for which it estimates the expenses of maintaining and operating the water delivery [irrigation] system by estimating such expenses for a shorter period so as to adjust to a new fixed date and thereafter estimating the expenses for 12-month periods following the adjusted fixed date.

SECTION 30. Section 58.305, Water Code, is amended to read as follows:

Sec. 58.305. DISTRIBUTION OF ASSESSMENT. (a) The board by rule shall allocate a portion [Not less than one-third nor more than two-thirds] of the estimated maintenance and operating expenses that shall be paid by assessment against all land in the district to which the district can furnish irrigation water through its water delivery [irrigation] system or through an extension of its water delivery [irrigation] system. This assessment shall be levied against all irrigable land in the district on a per acre basis, whether or not the land is actually irrigated.

(b) [The assessments shall be levied against all irrigable land in the district on a per acre basis, whether or not the land is actually irrigated.] The board shall determine from year to year the proportionate amount of the expenses which will be borne by all water users receiving water delivery from the district.

(c) The remainder of the estimated expenses shall be paid by charges, fees, rentals, or deposits required of [assessments against] persons in the district who use or who make application to use water and other charges approved by the board. The board shall prorate the remainder [as equitably as possible] among the applicants for irrigation water and may consider:

(1) the acreage each applicant will plant, the crop the applicant [he] will grow, and the amount of water per acre used for irrigation purposes; and

(2) other factors deemed appropriate by the board with respect to water used for other nonirrigation uses [he will use].

SECTION 31. Section 58.306, Water Code, is amended to read as follows:

Sec. 58.306. NOTICE OF ASSESSMENTS. (a) Public notice of all assessments imposed under Section 58.305(a) shall be given by posting printed notice [notices] of the assessment in at least one [three] public place [places] in the district.

(b) Not later than the fifth day before the date on which the assessment is due, notice [Notice] shall be mailed to each landowner at the address which the landowner shall furnish to the board.

(c) Notice [The notice shall be posted in a public place and mailed to each landowner five days before the assessment is due, and notice] of special assessments shall be given within 10 days after the assessment is levied.

SECTION 32. Subsection (a), Section 58.307, Water Code, is amended to read as follows:

(a) All assessments imposed under Section 58.305(a) shall be paid in installments at the times fixed by the board.

SECTION 33. Subsections (a), (b), and (c), Section 58.308, Water Code, are amended to read as follows:

(a) Under the direction of the board, the assessor and collector, or other person designated by the board, shall collect all assessments imposed under Section 58.305(a) for maintenance and operating expenses.

(b) The assessor and collector shall execute a bond in an amount determined by the board, conditioned on the faithful performance of the [his] duties of the assessor and collector and accounting for all money collected.

(c) The assessor and collector shall keep an account of all money collected and shall deposit the money as collected in the district depository. The assessor and collector [He] shall file with the secretary of the board a statement of all money collected once each month [week].

SECTION 34. Section 58.309, Water Code, is amended to read as follows:

Sec. 58.309. LIEN AGAINST CROPS. The district shall have a first lien, superior to all other liens, against all crops grown on a [each] tract of land in the district to secure the payment of an [the] assessment imposed against the tract under Section 58.305(a), interest, and collection or attorney's fees.

SECTION 35. Section 58.310, Water Code, is amended to read as follows:

Sec. 58.310. LIST OF DELINQUENT ASSESSMENTS. Assessments imposed under Section 58.305(a) not paid when due shall become delinquent on the first day of the month following the date payment is due, and the board shall [post in a public place in the district a list of all persons who are delinquent in paying their assessments and shall] keep posted in a public place in the district a correct list of all persons who are delinquent in paying assessments. If a person who owes an assessment has executed a note and contract as provided in Section 58.302, the person may [of this code, he shall] not be placed on the delinquent list until after the maturity of the note and contract.

SECTION 36. Section 58.311, Water Code, is amended to read as follows:

Sec. 58.311. WATER SERVICE DISCONTINUED. If a landowner fails or refuses to pay a water assessment or a person fails to pay a charge, fee, rental, or deposit imposed under this subchapter or Chapter 49 when due, the landowner's or person's [his] water supply shall be cut off, and no water may be furnished to the land until all back assessments or other amounts owed to the district are fully paid. The discontinuance of water service is binding on all persons who own or acquire an interest in land for which assessments or other amounts owed to the district are due.

SECTION 37. Section 58.312, Water Code, is amended to read as follows:

Sec. 58.312. SUITS FOR DELINQUENT ASSESSMENTS. Suits for delinquent water assessments or other amounts owed to the district under this subchapter may be brought either in the county in which the district is located or in the county in which the defendant resides. All landowners are personally liable for assessments imposed under Section 58.305(a) [provided in this subchapter].

SECTION 38. Subsection (a), Section 58.313, Water Code, is amended to read as follows:

(a) All assessments imposed under Section 58.305(a) shall bear interest from the date payment is due at the rate of 15 percent a year. Assessments not paid by the first day of the month following the date payment is due are [shall become] delinquent, and a penalty of up to 15 percent of the amount of the past-due assessment shall be added to the amount due.

SECTION 39. Section 58.137, Water Code, is repealed.

SECTION 40. This Act takes effect September 1, 2013.

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