By: Bell of Montgomery H.B. No. 5172

A BILL TO BE ENTITLED

AN ACT

relating to the creation of a district.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 49.011, Water Code is amended to read as follows:

Sec. 49.011. NOTICE APPLICABLE TO CREATION OF A DISTRICT OR ADDITION OF LANDS TO A DISTRICT BY THE COMMISSION. (a) On receipt by the commission of all required documentation associated with an application for creation of a district by the commission under Chapter 36, 50, 51, 54, 55, 58, 65, or 66 of this code or Chapter 375, Local Government Code or addition of lands to a district by the commission under Section 54.016 of this code or Section 42.042, Local Government Code the commission shall issue a notice indicating that the application is administratively complete.

(b) The commission by rule shall establish a procedure for public notice and hearing of applications. The rules must require an applicant to publish the notice issued by the commission under Subsection (a) once a week for two consecutive weeks in a newspaper regularly published or circulated in the county where the district or added land is proposed to be located not later than the 30th day before the date on which the commission may act on the application. The commission shall provide the notice to each state representative and state senator who represents an area inside the proposed district's boundaries or boundaries of land to be added to the district under Section 54.016 of this code or Section 42.042, Local Government Code.

(c) The commission may act on an application without holding a public hearing if a public hearing is not requested by the commission, the executive director, or an affected person in the manner prescribed by commission rule during the 30 days following the final publication of notice under Subsection (b).

(d) If the commission determines that a public hearing is necessary, the commission shall advise all parties of the time and place of the hearing. The commission is not required to provide public notice of a hearing under this section.

(e) The commission shall require any affected person that is a taxing unit or other provider of water or wastewater services that requests a hearing on a petition under this section to post a bond issued by a surety company qualified to do business in this state or other adequate security in the pro rata amount of the estimated legal, engineering, and related costs that may be incurred by the applicant for the hearing proceeding. The amount of the bond or other security shall be determined by the commission at the time a hearing is granted. If the petition is denied by the commission after a hearing, then the commission shall order the applicant to reimburse the legal, engineering and other related costs and expenses related to hearing incurred by any affected person that is a taxing unit or other provider of water or wastewater services. If the petition is approved by the commission after a hearing, then the commission shall order each affected person that is a taxing unit or other provider of water or wastewater services to reimburse its pro rata share of the applicant's legal, engineering and related costs and expenses related to the hearing.

(f) A copy of the order of the commission granting or denying a petition for the creation of a district shall be mailed to each city having extraterritorial jurisdiction in the county or counties in which the district is located who requested a hearing under Section 49.011.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.