By:  Shapiro                                          S.B. No. 1225
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the creation of water districts or political
 1-2     subdivisions and the annexation of land by a water district or
 1-3     political subdivision.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 49, Water Code, is amended
 1-6     by adding Section 49.012 to read as follows:
 1-7           Section 49.012.  CONSENT OF CITY.  Notwithstanding any other
 1-8     provision provided by law, no land within the corporate limits of a
 1-9     city shall be included in a district without the written consent,
1-10     by ordinance or resolution, of the city.  The provisions of this
1-11     section shall apply whether the land is proposed to be included in
1-12     the district at the time of creation of a district or to be
1-13     included by annexation to a district.
1-14           SECTION 2.  Subsection (a), Section 49.301, Water Code, is
1-15     amended to read as follows:
1-16           (a)  In addition to any other provision provided by law, the
1-17     owner or owners of land whether or not contiguous to the district
1-18     or otherwise may file with the board a petition requesting that
1-19     there be included in the district the land described in the
1-20     petition by metes and bounds or by lot and block number if there is
1-21     a recorded plat of the area to be included in the district.  The
1-22     petition may request the district to condition the annexation on
1-23     certain conditions, including the voter authorization of bonds to
1-24     serve the area to be annexed.  No land within the corporate limits
 2-1     of a city shall be annexed by a district unless the city grants its
 2-2     written consent, by resolution or ordinance, to the inclusion of
 2-3     the land within the district.  No land within the extraterritorial
 2-4     jurisdiction of a city shall be annexed by a district except in
 2-5     accordance with Section 42.042, Local Government Code.
 2-6           SECTION 3.  Subsection (a), Section 49.302, Water Code, is
 2-7     amended to read as follows:
 2-8           (a)  In addition to the method of adding land to a district
 2-9     described in Section 49.301, defined areas of land, whether or not
2-10     they are contiguous to the district, may be annexed to the district
2-11     in the manner set forth in this section.  No land within the
2-12     corporate limits of a city shall be annexed by a district unless
2-13     the city grants its written consent, by resolution or ordinance, to
2-14     the inclusion of the land within the district.  No land within the
2-15     extraterritorial jurisdiction of a city shall be annexed by a
2-16     district except in accordance with Section 42.042, Local Government
2-17     Code.
2-18           SECTION 4.  Subsections (a), (b), (c), (d), and (f), Section
2-19     42.042, Local Government Code, are amended to read as follows:
2-20           (a)  A political subdivision, one purpose of which is to
2-21     supply fresh water for domestic or commercial use or to furnish
2-22     sanitary sewer services, roadways, or drainage, may not be created
2-23     in the extraterritorial jurisdiction of a municipality unless the
2-24     governing body of the municipality gives its written consent by
2-25     ordinance or resolution in accordance with this subsection and the
2-26     Water Code.  In giving its consent, the municipality may not place
 3-1     any conditions or other restrictions on the creation of the
 3-2     political subdivision other than those expressly permitted by
 3-3     Section 54.016(e), Water Code.  The provisions of this section
 3-4     shall apply whether the land is proposed to be included in the
 3-5     political subdivision at the time of creation of the political
 3-6     subdivision or to be included by annexation to a political
 3-7     subdivision; provided, however, this section shall not apply to an
 3-8     annexation by a political subdivision that is lawfully within the
 3-9     extraterritorial jurisdiction of the municipality as of January 1,
3-10     1999.
3-11           (b)  If the governing body fails or refuses to give its
3-12     consent for the creation of the political subdivision or the
3-13     inclusion of the land in a political subdivision on mutually
3-14     agreeable terms within 90 days after the date it receives a written
3-15     request for the consent, a majority of the qualified voters of the
3-16     area of the proposed political subdivision and the owners of at
3-17     least 50 percent of the land in the proposed political subdivision
3-18     may petition the governing body to make available to the area the
3-19     water, sanitary sewer services, or both that would be provided by
3-20     the political subdivision.
3-21           (c)  If, within 120 days after the date the governing body
3-22     receives the petition, the governing body fails to make a contract
3-23     with a majority of the qualified voters of the area of the proposed
3-24     political subdivision and the owners of at least 50 percent of the
3-25     land in the proposed political subdivision to provide the services,
3-26     that failure constitutes the governing body's consent to the
 4-1     creation of the proposed political subdivision or the inclusion of
 4-2     the land in a political subdivision.
 4-3           (d)  The consent to the creation of the political subdivision
 4-4     or the inclusion of the land in a political subdivision is only an
 4-5     authorization to initiate proceedings to create the political
 4-6     subdivision or include land in a political subdivision as provided
 4-7     by law.
 4-8           (f)  If the municipality fails or refuses to give its consent
 4-9     to the creation of the political subdivision or the inclusion of
4-10     the land in a political subdivision or fails or refuses to execute
4-11     a contract providing for the water or sanitary sewer services
4-12     requested within the time limits prescribed by this section, the
4-13     applicant may petition the Texas Natural Resource Conservation
4-14     Commission for the creation of the political subdivision or the
4-15     inclusion of the land in a political subdivision.  The commission
4-16     shall allow creation of the political subdivision or inclusion of
4-17     the land in a [proposed] political subdivision on finding that the
4-18     municipality either does not have the reasonable ability to serve
4-19     or has failed to make a legally binding commitment with sufficient
4-20     funds available to provide water and wastewater service adequate to
4-21     serve the proposed development at a reasonable cost to the
4-22     landowner.  The commitment must provide that construction of the
4-23     facilities necessary to serve the land will begin within two years
4-24     and will be substantially completed within 4 1/2  years after the
4-25     date the petition was filed with the municipality.
4-26           SECTION 5.  The importance of this legislation and the
 5-1     crowded condition of the calendars in both houses create an
 5-2     emergency and an imperative public necessity that the
 5-3     constitutional rule requiring bills to be read on three several
 5-4     days in each house be suspended, and this rule is hereby suspended,
 5-5     and that this Act take effect and be in force from and after its
 5-6     passage, and it is so enacted.