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  By: Puente H.B. No. 3772
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a municipal utility district upon
release from a certificate of public convenience and necessity.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Chapter 54, Water Code, is amended by adding
Section 54.0164 to read as follows:
       Section 54.0164  CREATION UPON RELEASE FROM ANOTHER ENTITY'S
SERVICE AREA.  If the owner(s) of a tract(s) of land that is at least
50 acres is released by written agreement from a rural water supply
corporation's certificate of public convenience and necessity that
serves between 6000 and 8000 water connections and is within the
extra-territorial jurisdiction and/or city limits of a
municipality, the municipality shall serve the tract(s) within the
tract(s) owners' required timeframe within which service is needed
for current and projected service demands in the released areas. If
the municipality cannot serve the tract(s) required development
needs within the required time frame of the tract(s) owner(s), a
municipal utility district shall be formed to provide water service
to the tract(s), which may be noncontiguous. The time requirements
and the municipality's and county's consent in Chapter 54, Water
Code, are waived, and the municipal utility district creation shall
be expedited by the Texas Commission on Environmental Quality and
approved within 90 days of receiving an administratively complete
application.
       SECTION 2.  Section 54.0164, Water Code, as added by this
Act, applies only to a tract or tracts of land that was the subject
of an executed release agreement by a rural water supply
corporation prior to the effective date of this Act.
       SECTION 3.  This Act takes effect September 1, 2007.