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.