H.B. No. 2740
    1-1                                AN ACT
    1-2  relating to the service area for operation of a municipal drainage
    1-3  system and collection of drainage charges.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 402.044(8), Local Government Code, is
    1-6  amended to read as follows:
    1-7              (8)  "Service area" means the municipal boundaries and
    1-8  any other land areas outside the municipal boundaries which, as a
    1-9  result of topography or hydraulics, contribute overland flow into
   1-10  the watersheds served by the drainage system of a municipality;
   1-11  provided, however, that in no event may a service area extend
   1-12  farther than the boundaries of a municipality's current
   1-13  extraterritorial jurisdiction, nor, except as provided by Section
   1-14  402.0451, may a service area of one municipality extend into the
   1-15  boundaries of another incorporated town, city, or municipality.
   1-16  The service area is to be established in the ordinance establishing
   1-17  the drainage utility.  Provided, that no municipality shall extend
   1-18  a service area outside of its municipal boundaries except a
   1-19  municipality of more than 400,000 population located in one or more
   1-20  counties of less than 600,000 population according to the most
   1-21  recent federal census or except as provided by Section 402.0451.
   1-22        SECTION 2.  Subchapter C, Chapter 402, Local Government Code,
   1-23  is amended by adding Section 402.0451 to read as follows:
   1-24        Sec. 402.0451.  EXTENSION OF SERVICE AREA BY CERTAIN
    2-1  MUNICIPALITIES.  (a)  A municipality with a population of more than
    2-2  900,000 located in one or more counties with a population of less
    2-3  than 1.5 million as of the 1990 federal census may extend its
    2-4  service area:
    2-5              (1)  into the boundaries of another municipality if:
    2-6                    (A)  before the extension water from the
    2-7  municipality to which the service area is to be extended regularly
    2-8  drains into the drainage system of the municipality extending its
    2-9  service area; and
   2-10                    (B)  the extension is provided for by an
   2-11  interlocal agreement between the municipalities; or
   2-12              (2)  beyond its municipal boundaries into an
   2-13  unincorporated area of its extraterritorial jurisdiction if:
   2-14                    (A)  before the extension water from the area to
   2-15  which the service area is to be extended regularly drains into the
   2-16  drainage system of the municipality extending its service area; and
   2-17                    (B)  the extension is provided for by an
   2-18  interlocal agreement between the municipality extending its service
   2-19  area and the county containing the area to which the service area
   2-20  is to be extended.
   2-21        (b)  An interlocal agreement under Subsection (a) may:
   2-22              (1)  contain provisions necessary for the operation of
   2-23  a drainage system within the area to which the service area is
   2-24  extended; and
   2-25              (2)  provide for charges for treatment of drainage
   2-26  water and methods of assessment of the charges to an owner of a lot
   2-27  or tract of benefitted property in the area to which the service
    3-1  area is extended.
    3-2        (c)  Charges and methods of assessment agreed to under
    3-3  Subsection (b)(2) must comply with Section 402.047.
    3-4        SECTION 3.  Section 402.053(c), Local Government Code, is
    3-5  amended to read as follows:
    3-6        (c)  The following shall be exempt from the provisions of any
    3-7  rules or ordinances adopted by a municipality pursuant to this Act:
    3-8              (1)  property with proper construction and maintenance
    3-9  of a wholly sufficient and privately owned drainage system;
   3-10              (2)  property held and maintained in its natural state,
   3-11  until such time that the property is developed and all of the
   3-12  public infrastructure constructed has been accepted by the
   3-13  municipality in which the property is located for maintenance; and
   3-14              (3)  a subdivided lot, until a structure has been built
   3-15  on the lot and a certificate of occupancy has been issued by the
   3-16  municipality in which the property is located <having jurisdiction
   3-17  to adopt this subchapter and declare the drainage of the
   3-18  municipality to be a public utility>.
   3-19        SECTION 4.  The importance of this legislation and the
   3-20  crowded condition of the calendars in both houses create an
   3-21  emergency and an imperative public necessity that the
   3-22  constitutional rule requiring bills to be read on three several
   3-23  days in each house be suspended, and this rule is hereby suspended,
   3-24  and that this Act take effect and be in force from and after its
   3-25  passage, and it is so enacted.