By Bailey                                             H.B. No. 2714
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the duty of a municipality with a population greater
    1-3  than  1.5 million to provide water and sewer services to annexed
    1-4  areas.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Subsection 5.235, Water Code, is amended by
    1-7  amending Subsection (n)(7)(C) to read as follows:
    1-8                    (C)  The commission shall assess a penalty
    1-9  against a municipality with a population of more than 1.5 million
   1-10  that does not provide municipal water and sewer services in an
   1-11  annexed area <on or before 4 1/2  years after the annexation takes
   1-12  effect in accordance with Section 43.056, Local Government Code> as
   1-13  provided in Subsection 43.056(1), Local Government Code.  A penalty
   1-14  assessed under this paragraph shall be not more than $1,000 for
   1-15  each day the services are not provided after March 1, 1998 for
   1-16  areas annexed prior to January 1, 1993, or 4 1/2  years after the
   1-17  effective date of the annexation for areas annexed on or after
   1-18  January 1, 1993 <4 1/2 years after the annexation>.  A penalty
   1-19  collected under this paragraph shall be deposited into a special
   1-20  fund in the state treasury to be used to provide water and sewer
   1-21  services to residents of the <city> municipality.
   1-22        SECTION 2.  Section 43.056, Local Government Code, is amended
   1-23  by adding subsection (1) to read as follows:
    2-1              (1)  A municipality with a population in excess of 1.5
    2-2  million that includes within its boundaries annexed areas without
    2-3  water service, sewer service, or both shall:
    2-4              (1)  Develop a service plan that identifies developed
    2-5  tracts in annexed areas of the municipality that did not have water
    2-6  service, sewer service, or both, and that provides a procedure for
    2-7  providing water service, sewer service, or both, to such developed
    2-8  tracts.  For areas annexed by the municipality on or after January
    2-9  1, 1993, the service plan is subject to all of the requirements of
   2-10  this Section, including this Subsection (1).  The plan:
   2-11                    (A)  must establish, within 4 1/2 years, a
   2-12  timetable for providing service based on a priority system that
   2-13  considers potential health hazard, population density, number of
   2-14  existing buildings, reasonable cost of providing service and the
   2-15  desires of the residents;
   2-16                    (B)  must include a capital improvements plan
   2-17  committing the necessary financing;
   2-18                    (C)  may include a provision in which the
   2-19  municipality is not obligated to provide water service, sewer
   2-20  service, or both, in an area described in the service plan if a
   2-21  majority of the residents in such area sign a petition stating they
   2-22  do not want to receive the services; and
   2-23                    (D)  may require property owners to connect to
   2-24  service lines constructed to serve their area.
   2-25              (2)  Provide water service, sewer service, or both to
    3-1  at least 75% of the residential buildings in annexed areas of the
    3-2  municipality that did not have water service, sewer service, or
    3-3  both, on September 1, 1991, with the following exception:  water
    3-4  service shall be provided to each area annexed prior to January 1,
    3-5  1993, if such area or subdivision as described in the service plan
    3-6  contains at least 25 residences without water service unless a
    3-7  majority of the residence owners in such area state in a petition
    3-8  that they do not want municipal water service.
    3-9        SECTION 3.  The importance of this legislation and the
   3-10  crowded condition of the calendar in both houses create an
   3-11  emergency and an imperative public necessity that the
   3-12  constitutional rule requiring bills to be read on three several
   3-13  days in each house be suspended, and the rule is hereby suspended,
   3-14  and that this Act take effect and be in force from and after its
   3-15  passage, and it is so enacted.