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AN ACT
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relating to impact and production fees for certain water projects |
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and to the regulation of certain wells; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 395, Local Government |
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Code, is amended by adding Section 395.0231 to read as follows: |
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Sec. 395.0231. CONSERVATION AND REUSE CREDITS AGAINST WATER |
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AND WASTEWATER FEES. (a) A political subdivision shall provide a |
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credit against water and wastewater impact fees otherwise assessed |
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to a development to a builder or developer for the construction, |
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contribution, or dedication of an eligible facility, system, or |
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product that results in water reuse, conservation, or savings. |
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(b) A facility, system, or product eligible for a credit |
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under this section includes a facility, system, or product that: |
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(1) reduces per service unit water consumption, supply |
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requirements, or necessary treatment and distribution |
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infrastructure per service unit; |
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(2) decreases the need of wastewater collection and |
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treatment facilities per service unit; |
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(3) diminishes the demand for stormwater and drainage |
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facilities per service unit; or |
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(4) integrates practices or technologies that achieve |
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water efficiency, reuse, or conservation performance that exceed |
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standard compliance requirements. |
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(c) A political subdivision that provides a credit under |
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this section shall establish procedures for: |
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(1) calculating and applying the credits in a fair and |
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consistent manner; and |
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(2) reviewing and approving credits under this |
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section. |
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SECTION 2. Section 8843.152, Special District Local Laws |
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Code, is amended to read as follows: |
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Sec. 8843.152. SERVICE CONNECTION FEE AND PRODUCTION FEE. |
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(a) This section does not apply to a water utility that has surface |
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water as its sole source of water. |
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(b) The district may levy and collect a water utility |
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service connection fee not to exceed $1,000 for each new water |
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service connection made after September 1, 2013. |
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(c) The district may assess a production fee as provided by |
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Section 36.205, Water Code. Subject to Subsection (d), a fee |
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assessed under this subsection may not exceed 30 cents per 1,000 |
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gallons. |
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(d) Beginning January 1, 2026, and continuing on January 1 |
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of each subsequent year, the maximum amount of the fee described by |
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Subsection (c) increases by five percent from the previous year's |
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maximum amount. |
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(e) The district may provide a credit against a service |
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connection fee otherwise assessed to a water utility that is also |
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assessed a production fee under this section for the construction, |
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contribution, or dedication of an eligible facility, system, or |
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product that results in water reuse, conservation, or savings as |
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described under Section 395.0231(b), Local Government Code. |
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SECTION 3. Section 8843.104, Special District Local Laws |
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Code, is repealed. |
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SECTION 4. This Act takes effect September 1, 2025. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1253 passed the Senate on |
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March 27, 2025, by the following vote: Yeas 30, Nays 0; and that |
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the Senate concurred in House amendments on May 26, 2025, by the |
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following vote: Yeas 30, Nays 1. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1253 passed the House, with |
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amendments, on May 21, 2025, by the following vote: Yeas 112, |
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Nays 28, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |