89R9663 JBD-F

By: Creighton S.B. No. 2685

A BILL TO BE ENTITLED

AN ACT

relating to municipal and county consent for the creation of and inclusion of territory in certain political subdivisions.

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

SECTION 1. Sections 42.042(b), (f), and (k), Local Government Code, are amended to read as follows:

(b) If the governing body fails or refuses to give its consent for the creation of the political subdivision, including a [water] district previously created by an act of the legislature, not later than the 75th day [on mutually agreeable terms within 90 days] after the date the governing body receives a written request for [the] consent for the creation of the political subdivision, a majority of the qualified voters of the area of the proposed political subdivision or [and] the owners of at least 50 percent of the land in the proposed political subdivision may petition the Texas Commission on Environmental Quality for the creation of the political subdivision [governing body to make available to the area the water, sanitary sewer services, or both that would be provided by the political subdivision].

(f) [If the municipality fails or refuses to give its consent to the creation of the political subdivision, including a water district previously created by an act of the legislature, or fails or refuses to execute a contract providing for the water or sanitary sewer services requested within the time limits prescribed by this section, the applicant may petition the Texas Commission on Environmental Quality for the creation of the political subdivision or the inclusion of the land in a political subdivision.] The Texas Commission on Environmental Quality [commission] shall allow creation or confirmation of the creation of the political subdivision or inclusion of the land in a proposed political subdivision for which the commission receives a petition under Subsection (b) only on finding that the municipality either does not have the reasonable ability to provide water and wastewater service adequate to serve the full development of the land from the municipality's existing facilities at a reasonable cost to the landowner or has failed to make a legally binding commitment with sufficient funds available to provide water and wastewater service adequate to serve the proposed full development of the land at a reasonable cost to the landowner. The commitment must provide that the municipality shall commence construction of the facilities necessary to serve the land [will begin] within two years and the construction will be substantially completed within three and one-half [4-1/2] years after the date the petition was filed with the municipality.

(k) This section[, except Subsection (i),] applies only to the proposed political subdivision's area located in the extraterritorial jurisdiction of the municipality.

SECTION 2. Sections 54.016(b) and (d), Water Code, are amended to read as follows:

(b) If the governing body of a city fails or refuses to grant permission for the inclusion of land within its extraterritorial jurisdiction in a district, including a district created by a special act of the legislature, within 75 [90] days after receipt of a written request, a majority of the electors in the area proposed to be included in the district or the owner or owners of 50 percent or more of the land to be included may petition the commission for the creation of the district or the inclusion of the land in a district [governing body of the city and request the city to make available to the land the water or sanitary sewer service contemplated to be provided by the district].

(d) [The provisions of this section relating to the method of including land in a district without securing the written consent of a city applies only to land within the extraterritorial jurisdiction of a city and does not apply to land within the corporate limits of a city. If the city fails or refuses to grant permission for the inclusion of land in a district or to execute a mutually agreeable contract providing for the water or sanitary sewer service requested within the time limits contained within Subsection (b) or (c) of this section, the applicant may petition the commission for creation of the district or inclusion of the land in a district.] The commission shall allow creation or inclusion of the land in a proposed district for which the commission receives a petition under Subsection (b) only upon a finding that the city either does not have the reasonable ability to provide water and wastewater service adequate to serve the full development of the land from the city's existing facilities at a reasonable cost to the landowner or has failed to make a legally binding commitment with sufficient funds available to provide water and wastewater service adequate to serve the full [proposed] development of the land at a reasonable cost to the landowner. The commitment shall provide that the city shall commence construction of the facilities necessary to serve the land [shall be commenced] within two years, and that the construction shall be substantially complete within three and one-half [four and one-half] years from the date the petition was filed with the city. Upon any appeal taken to the district court from the commission ruling, all parties to the commission hearing shall be made parties to the appeal. The court shall hear the case within 120 days from the date the appeal is filed. If the case is continued or appealed to a higher court beyond such 120-day period, the court shall require the appealing party in the case of appeal to a higher court or party requesting such continuance to post a bond or other adequate security in the amount of damages that may be incurred by any party as a result of such appeal or delay from the commission action. The amount of the bond or other security shall be determined by the court after notice and hearing. Upon final disposition, a court may award damages, including any damages for delays, attorney's fees, and costs of court to the prevailing party. Under no circumstances shall land within the corporate limits of a city be included in a district without the written consent, by ordinance or resolution, of the city. The provisions of this section shall apply whether the land is proposed to be included in the district at the time of creation of a district or to be included by annexation to a district. A district shall not allow the owner of a tract to connect to the district's water or wastewater system unless such tract is a legally subdivided lot which is part of a recorded subdivision plat or is otherwise legally exempt from the subdivision requirements of the applicable governmental authority.

SECTION 3. Section 54.0161, Water Code, is amended by amending Subsection (c) and adding Subsection (d) to read as follows:

(c) In passing on a petition subject to this section, the commission shall consider the written opinion submitted by the county commissioners court. The commission may request additional information from the county commissioners court regarding the petition.

(d) The county commissioners court may participate in the consideration of the creation of a district before the commission only in the manner provided by this section.

SECTION 4. The following provisions are repealed:

(1) Sections 42.042(c) and (d), Local Government Code;

(2) Section 42.0425(c), Local Government Code;

(3) Section 54.016(c), Water Code; and

(4) Section 54.0165(c), Water Code.

SECTION 5. The changes in law made by this Act apply only to a petition for the creation of a political subdivision that is filed with the Texas Commission on Environmental Quality on or after the effective date of this Act. A petition pending before the Texas Commission on Environmental Quality on the effective date of this Act is governed by the law in effect at the time the petition was filed, and that law is continued in effect for that purpose.

SECTION 6. 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.