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By:  Laubenberg                                                   H.B. No. 3537



A BILL TO BE ENTITLED

AN ACT

relating to providing water services within the extraterritorial 
jurisdiction or ultimate planning boundaries of municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 395.080, Local Government Code, as 
amended by Chapter 76, Acts of the 74th Legislature, Regular 
Session, 1995, is reenacted and amended to read as follows:
	Section 395.080.  CHAPTER NOT APPLICABLE TO CERTAIN 
EATER-RELATED SPECIAL DISTRICTS.
	(a)  This chapter does not apply to impact fees, charges, 
fees, assessments, or contributions:
		(1)  paid by or charged to a district created under 
Article XVI, Section 59, of the Texas Constitution to another 
district created under that constitutional provision if both 
districts are required by law to obtain approval of their bonds by 
the Texas [Natural Resource Conservation Commission] Commission on 
Environmental Quality; or
		(2)  charged by an entity if the impact fees, charges, 
fees, assessments, or contributions are approved by the Texas 
[Natural Resource Conservation Commission] Commission on 
Environmental Quality.
	(b)  Any district created under Article XVI, Section 59, or 
Article III, Section 52, of the Texas Constitution may petition the 
Texas [Natural Resource Conservation Commission] Commission on 
Environmental Quality for approval of any proposed impact fees, 
charges, fees, assessments, or contributions.  The commission shall 
adopt rules for reviewing the petition and may charge the 
petitioner fees adequate to cover the cost of processing and 
considering the petition.  The rules shall require notice 
substantially the same as that required by this chapter for the 
adoption of impact fees and shall afford opportunity for all 
affected parties to participate.
	(c)  Any rural water supply corporation created under 
Chapter 67, Water Code, which provides water service within the 
extraterritorial jurisdiction or ultimate planning shall petition 
the Texas Commission on Environmental Quality for approval of any 
proposed impact fees, charges, fees, assessments or contributions 
before assessing the same.  The commission shall adopt rules for 
reviewing the petition and may charge the petitioner fees adequate 
to cover the cost of processing and considering the petition.  The 
rules shall require notice substantially the same as that required 
by this chapter for the adoption of impact fees and shall afford 
opportunity for all affected parties to participate.  This 
subsection only applies to a municipality which is located in a 
county that:
		(1)  has a population of 500,000 or more; or                           
		(2)  is adjacent to a county with a population of 
500,000 or more,   
	SECTION 2.  This Act takes effect September 1, 2003.