1-1     By:  Shapiro                                          S.B. No. 1225
 1-2           (In the Senate - Filed March 11, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     May 11, 1999, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; May 11, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation of water districts or political
 1-9     subdivisions and the annexation of land by a water district or
1-10     political subdivision.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subchapter B, Chapter 49, Water Code, is amended
1-13     by adding Section 49.012 to read as follows:
1-14           Section 49.012.  CONSENT OF CITY.  Notwithstanding any other
1-15     provision provided by law, no land within the corporate limits of a
1-16     city shall be included in a district without the written consent,
1-17     by ordinance or resolution, of the city.  The provisions of this
1-18     section shall apply whether the land is proposed to be included in
1-19     the district at the time of creation of a district or to be
1-20     included by annexation to a district.
1-21           SECTION 2.  Subsection (a), Section 49.301, Water Code, is
1-22     amended to read as follows:
1-23           (a)  In addition to any other provision provided by law, the
1-24     owner or owners of land whether or not contiguous to the district
1-25     or otherwise may file with the board a petition requesting that
1-26     there be included in the district the land described in the
1-27     petition by metes and bounds or by lot and block number if there is
1-28     a recorded plat of the area to be included in the district.  The
1-29     petition may request the district to condition the annexation on
1-30     certain conditions, including the voter authorization of bonds to
1-31     serve the area to be annexed.  No land within the corporate limits
1-32     of a city shall be annexed by a district unless the city grants its
1-33     written consent, by resolution or ordinance, to the inclusion of
1-34     the land within the district.  No land within the extraterritorial
1-35     jurisdiction of a city shall be annexed by a district except in
1-36     accordance with Section 42.042, Local Government Code.
1-37           SECTION 3.  Subsection (a), Section 49.302, Water Code, is
1-38     amended to read as follows:
1-39           (a)  In addition to the method of adding land to a district
1-40     described in Section 49.301, defined areas of land, whether or not
1-41     they are contiguous to the district, may be annexed to the district
1-42     in the manner set forth in this section.  No land within the
1-43     corporate limits of a city shall be annexed by a district unless
1-44     the city grants its written consent, by resolution or ordinance, to
1-45     the inclusion of the land within the district.  No land within the
1-46     extraterritorial jurisdiction of a city shall be annexed by a
1-47     district except in accordance with Section 42.042, Local Government
1-48     Code.
1-49           SECTION 4.  Subsections (a), (b), (c), (d), and (f), Section
1-50     42.042, Local Government Code, are amended to read as follows:
1-51           (a)  A political subdivision, one purpose of which is to
1-52     supply fresh water for domestic or commercial use or to furnish
1-53     sanitary sewer services, roadways, or drainage, may not be created
1-54     in the extraterritorial jurisdiction of a municipality unless the
1-55     governing body of the municipality gives its written consent by
1-56     ordinance or resolution in accordance with this subsection and the
1-57     Water Code.  In giving its consent, the municipality may not place
1-58     any conditions or other restrictions on the creation of the
1-59     political subdivision other than those expressly permitted by
1-60     Section 54.016(e), Water Code.  The provisions of this section
1-61     shall apply whether the land is proposed to be included in the
1-62     political subdivision at the time of creation of the political
1-63     subdivision or to be included by annexation to a political
1-64     subdivision; provided, however, this section shall not apply to an
 2-1     annexation by a political subdivision that is lawfully within the
 2-2     extraterritorial jurisdiction of the municipality as of January 1,
 2-3     1999.
 2-4           (b)  If the governing body fails or refuses to give its
 2-5     consent for the creation of the political subdivision or the
 2-6     inclusion of the land in a political subdivision on mutually
 2-7     agreeable terms within 90 days after the date it receives a written
 2-8     request for the consent, a majority of the qualified voters of the
 2-9     area of the proposed political subdivision and the owners of at
2-10     least 50 percent of the land in the proposed political subdivision
2-11     may petition the governing body to make available to the area the
2-12     water, sanitary sewer services, or both that would be provided by
2-13     the political subdivision.
2-14           (c)  If, within 120 days after the date the governing body
2-15     receives the petition, the governing body fails to make a contract
2-16     with a majority of the qualified voters of the area of the proposed
2-17     political subdivision and the owners of at least 50 percent of the
2-18     land in the proposed political subdivision to provide the services,
2-19     that failure constitutes the governing body's consent to the
2-20     creation of the proposed political subdivision or the inclusion of
2-21     the land in a political subdivision.
2-22           (d)  The consent to the creation of the political subdivision
2-23     or the inclusion of the land in a political subdivision is only an
2-24     authorization to initiate proceedings to create the political
2-25     subdivision or include land in a political subdivision as provided
2-26     by law.
2-27           (f)  If the municipality fails or refuses to give its consent
2-28     to the creation of the political subdivision or the inclusion of
2-29     the land in a political subdivision or fails or refuses to execute
2-30     a contract providing for the water or sanitary sewer services
2-31     requested within the time limits prescribed by this section, the
2-32     applicant may petition the Texas Natural Resource Conservation
2-33     Commission for the creation of the political subdivision or the
2-34     inclusion of the land in a political subdivision.  The commission
2-35     shall allow creation of the political subdivision or inclusion of
2-36     the land in a [proposed] political subdivision on finding that the
2-37     municipality either does not have the reasonable ability to serve
2-38     or has failed to make a legally binding commitment with sufficient
2-39     funds available to provide water and wastewater service adequate to
2-40     serve the proposed development at a reasonable cost to the
2-41     landowner.  The commitment must provide that construction of the
2-42     facilities necessary to serve the land will begin within two years
2-43     and will be substantially completed within 4 1/2  years after the
2-44     date the petition was filed with the municipality.
2-45           SECTION 5.  The importance of this legislation and the
2-46     crowded condition of the calendars in both houses create an
2-47     emergency and an imperative public necessity that the
2-48     constitutional rule requiring bills to be read on three several
2-49     days in each house be suspended, and this rule is hereby suspended,
2-50     and that this Act take effect and be in force from and after its
2-51     passage, and it is so enacted.
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