CHAPTER 1. CITIES AND TOWNS

VERNON'S CIVIL STATUTES

TITLE 28. CITIES, TOWNS AND VILLAGES

CHAPTER 1. CITIES AND TOWNS

Art. 973c. EXCLUSION OF PROPERTY FROM CERTAIN WATER DISTRICTS.

Definitions

Sec. 1. As used in this Act:

(1) "Urban property" means land that has been subdivided into

town lots, or town lots and blocks, or small parcels of the same

general nature of town lots, or town blocks and lots, designed,

intended, or suitable for residential or other nonagricultural

purposes, as distinguished from farm acreage, including streets,

alleys, parkways, parks, and railroad property and rights-of-way

within that subdivided land and that is in a subdivision that is

within the corporate limits or extraterritorial jurisdiction of a

city that has subdivision approval jurisdiction under the

Municipal Annexation Act (Article 970a, Vernon's Texas Civil

Statutes), or Chapter 231, Acts of the 40th Legislature, Regular

Session, 1927 (Article 974a, Vernon's Texas Civil Statutes), and

for which a plat or map of the subdivision has been filed and

recorded in the office of the county clerk of the county in which

the subdivision or any part of the subdivision is located.

(2) "District" means any district or authority created under

Article III, Sections 52(b)(1) and (2), or Article XVI, Section

59, of the Texas Constitution now existing or hereafter created

for the principal purpose of, or principally engaged in,

furnishing water for the irrigation of agricultural lands.

Exclusion of Urban Property

Sec. 2. Urban property located within the boundaries of a

district may be excluded from the district by the board of

directors in the manner and on the conditions provided by this

Act. Urban property may be excluded only after the following have

been paid to the district:

(1) all taxes, assessments, and other lawful charges of the

district accrued on the property to be excluded, together with

all lawful interest and penalties accrued on those taxes,

assessments, and charges; and

(2) the proportionate part of the outstanding bonded indebtedness

or indebtedness in connection with a loan from an authorized

agency of the United States for which the property proposed to be

excluded is liable, as determined under this Act; and

(3) agreement on a reasonable determined amount to be paid by the

city or other supplier of potable water to compensate the

district for loss of revenue occasioned by the said exclusion.

Application for Exclusion

Sec. 3. (a) The owner or owners of urban property included within

the boundaries of a district and subject to taxation by the

district, and on which all taxes, assessments, and other lawful

charges, and penalties and interest, that have accrued to the

district have been paid, may make written sworn application to

the district to exclude that property from the district.

(b) The application must:

(1) include a sworn acknowledgement by the owner or owners of the

property;

(2) describe the property to be excluded by identifying the lot

or block number of the subdivision and the name or designation of

the subdivision as shown on the recorded plat of the subdivision,

or by some other method of identification; and

(3) state that the property is used or intended to be used for

the purposes for which it was subdivided, and that the property

is not used or intended to be used, in whole or in part, for

agricultural purposes.

(c) A correct copy of the recorded map or plat of the subdivision

must accompany the application and must clearly delineate the

part of the subdivision, if less than the whole, to be excluded

from the district.

(d) The applicant shall also furnish to the district evidence

satisfactory to, or required by, the board of directors of the

applicant's ownership of the property proposed to be excluded,

and of the right of the applicant to have the property excluded

from the district.

Consideration of Application

Sec. 4. (a) As soon as practicable after the filing of the

application, the board of directors of the district shall

consider the application and inquire into all the facts relating

to the application considered by the board to be necessary to a

determination of whether a public hearing on the application

should be held.

(b) After consideration and investigation, if the board finds

that all taxes, assessments, and charges of the district on the

property, and interest and penalties on those amounts, due to the

district up to the date of the filing of the application, have

been paid, that the property described in the application is

owned by the applicant, is urban property, and is not used or

intended to be used for agricultural purposes but will require a

source of treated potable water from the city in which the

subdivision is located, and that the exclusion of the property

will not cut off the district or its facilities from ready and

convenient access to other land remaining in the district for

irrigation or other district purposes, the board shall pass an

order approving further consideration of the application. If the

board is unable to make any one of these findings, it shall adopt

a resolution rejecting the application, and the resolution of the

board rejecting the application is final and not subject to

review by any other body, tribunal, or authority.

(c) If the board approves further consideration of the

application, it shall proceed to determine the proportionate

amount of the bonded or contractual indebtedness for which the

property to be excluded is liable as provided by Subsection (d)

of this section.

(d) If the district has outstanding bonded indebtedness, the

board shall obtain from the chief appraiser a certified copy of

the appraised value of all the property to be excluded for the

five years immediately preceding the year in which the

application is filed, as shown by the tax rolls of the district,

and the appraised value of all taxable property in the district

according to the most recent tax rolls of the district. The part

of the total outstanding bonded indebtedness of the district to

be paid by the applicant as a condition precedent to the

exclusion of the property is that proportion of the indebtedness,

including unpaid interest computed to the date of the order, that

the appraised value of the property to be excluded bears to the

appraised value of all taxable property in the district according

to the most recent tax rolls. If the district has contractual or

other indebtedness being repaid on the benefit tax basis, the

board shall obtain from the appropriate records the manner in

which the tax is assessed, and from those records the district

shall calculate the part of the total outstanding indebtedness of

the district remaining to be paid attributable to the property to

be excluded. The order of the board approving further

consideration of the application also shall state the amounts

required to be paid by Section 2 of this Act as a condition of

the exclusion of the property.

Further Proceedings on Application

Sec. 5. The order of the board approving further consideration of

the application has no force or effect, and no further proceeding

may be held on the application unless the applicant, within 20

days after adoption of the order or within a period of up to 30

days after adoption of the order as ordered by the board,

deposits with the district the amounts due under Section 2 of

this Act.

Notice and Hearing

Sec. 6. (a) If the deposit is made within the time provided by

Section 5 of this Act, the board shall set the application for

public hearing to be held at the regular office of the district

not less than 15 nor more than 30 days after the date of the

hearing order.

(b) The board shall have notice of the hearing posted in a

conspicuous place in the office of the district and at the

courthouse of the county in which the property proposed to be

excluded is situated.

Resolution Excluding Urban Property

Sec. 7. (a) If, as a result of such hearing, the board of

directors determines and finds that the owners of a majority in

acreage of the urban property do not desire irrigation of that

property, or that the urban property is not used or intended to

be used for agricultural purposes, the board of directors shall

adopt a resolution setting forth that determination and those

findings and shall exclude the urban property or the part of the

urban property to which the determination and findings are made.

If any canals, ditches, pipelines, pumps, or other facilities of

the district are located on land excluded in the resolution, the

exclusion does not affect or interfere with any rights that the

district might have to maintain and continue operation of the

facilities as located for the purpose of servicing land remaining

in the district.

(b) A copy of the resolution excluding urban property from the

district certified to and acknowledged by the secretary of the

board of directors shall be recorded by the district in the deed

records in the county in which the excluded property is located

as evidence of the exclusion.

(c) On the passage of the resolution the property excluded does

not constitute a part of the district, the owner of the property

has no further liability to the district or for any bonded or

other indebtedness of the district, and is not subject to further

taxation by the district.

(d) If the board determines from the hearing that for any reason

the application should not be granted, it shall adopt a

resolution rejecting the application, and the deposit made by the

applicant is subject to withdrawal by the applicant or on the

board's order.

Water Rights

Sec. 8. After the district excludes land from its boundaries that

lies within the corporate boundaries or extraterritorial

jurisdiction of any city, the city or other municipal supplier

who proposes to serve the land with a potable water supply may

petition the district to convert the proportionate water rights

previously allocated for the land from irrigation use rights to

municipal use rights for the use and benefit of the city or other

municipal supplier. The district shall compute the proportionate

water rights available and shall proceed with appropriate

administrative proceedings to convert the irrigation use rights

to municipal use rights. However, the city or other municipal

supplier shall deposit with the district the amount that the

district estimates will be its reasonable expenses and attorney's

fees incurred in those administrative proceedings before the

district is obligated to initiate the administrative proceedings.

On approval of the conversion by the Texas Water Commission, the

water shall be delivered to the city or other municipal supplier

by the district in the manner those entities may agree to under

the Water Code.

Acts 1985, 69th Leg., ch. 707, Sec. 1, eff. June 14, 1985.

Art. 974d-41. VALIDATION OF GOVERNMENTAL ACTS AND PROCEEDINGS OF

MUNICIPALITIES OF MORE THAN 1.5 MILLION.

Application

Sec. 1. This article applies to any municipality having a

population of 1.5 million or more.

Proceedings Validated

Sec. 2. The governmental acts and proceedings of a municipality

relating to a bond election that was held before December 1,

1991, and at which the ballot proposition was approved by more

than 60 percent of the voters voting on the proposition are

validated as of the dates they occurred. The validation includes

the preparation and wording of the ballot proposition, any action

taken by the municipality in calling and holding the bond

election, and any other action taken by the municipality before

the effective date of this article in connection with the

issuance of any bonds approved in the bond election. The acts and

proceedings may not be held invalid because they were not

performed in accordance with law. A municipality may take any

further action or conduct any further proceeding necessary to

complete the issuance of the bonds approved at the bond election,

and, when issued, the bonds are valid and binding obligations of

the municipality in accordance with the terms of the bonds.

Effect on Litigation

Sec. 3. This article does not apply to any matter that on the

effective date of this article has been held invalid by a final

judgment of a court of competent jurisdiction.

Recommendation

Sec. 4. The legislature recommends to the governing body of a

municipality that it adopt the aggregate goals for the

municipality's contracting with minority and women enterprises

set forth in the June 1992, report of Texas Southern University

as specified for the categories of construction, procurement, and

professional services. A cause of action may not be maintained to

enforce this section or to recover damages based on the failure

of the municipality to follow the recommendation of this section.

Conditions Affecting Expenditure of Bond Proceeds

Sec. 5. (a) Expenditures of the bond proceeds by the municipality

shall:

(1) be made in accordance with the covenants of all ordinances

enacted by the municipality before the bond election approving

the bonds;

(2) benefit the residents of the municipality so that the

benefits or expenditures, if feasible, reflect the demographic

makeup of the municipality; and

(3) to the extent the proceeds are designated for housing in the

municipality's bond proposition, be made for construction and

rehabilitation of housing and all matters incidental to housing

construction and rehabilitation on-site.

(b) This section applies cumulatively to the entire bond

authorization, rather than to individual bond issues or contracts

for the expenditure of the proceeds, and the municipality's

governing body is responsible for making decisions on individual

bond issues and contracts.

Added by Acts 1993, 73rd Leg., ch. 6, Sec. 2, eff. March 8, 1993.

Art. 974d-45. MUNICIPAL VALIDATION FOR VOLUNTARY ANNEXATION BY A

GENERAL-LAW MUNICIPALITY

Sec. 1. An annexation or attempted annexation by a general-law

municipality that occurred after May 1, 2004, and before January

1, 2005, and that was initiated by means of a petition signed by

all property owners within the annexed area, is validated as of

the date it occurred.

Sec. 2. This article does not apply to:

(1) an annexation or attempted annexation that, under a statute

of this state, was a misdemeanor or felony at the time the act or

proceeding occurred;

(2) an incorporation or attempted incorporation of a

municipality within the incorporated boundaries or

extraterritorial jurisdiction of another municipality that

occurred without the consent of the other municipality in

violation of Chapter 42 or 43, Local Government Code;

(3) an ordinance that, at the time it was passed, was preempted

by a statute of this state or the United States, including

Section 1.06 or 109.57, Alcoholic Beverage Code; or

(4) a matter that on the effective date of this article:

(A) is involved in litigation if the litigation ultimately

results in the matter being held invalid by a final judgment of a

court; or

(B) has been held invalid by a final judgment of a court.

Added by Acts 2005, 79th Leg., Ch.

762, Sec. 1, eff. June 17, 2005.