89R9940 JBD-F By: Zwiener H.B. No. 3139 A BILL TO BE ENTITLED AN ACT relating to the authority of a county overlying the Edwards Aquifer to approve the creation of and issuance of bonds by a municipal utility district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 54.001, Water Code, is amended by adding Subdivision (10) to read as follows: (10) "Edwards Aquifer" has the meaning assigned by Section 26.046. SECTION 2. Section 54.0161(a), Water Code, is amended to read as follows: (a) This section applies only to a proposed district: (1) all of which is to be located outside the corporate limits of a municipality; and (2) no part of which is to be located in a county that contains a portion of the Edwards Aquifer. SECTION 3. Subchapter B, Chapter 54, Water Code, is amended by adding Section 54.0166 to read as follows: Sec. 54.0166. NOTICE AND CONSENT OF COUNTY FOR DISTRICT OVERLYING EDWARDS AQUIFER. (a) This section applies only to a proposed district: (1) all of which is to be located outside the corporate limits of a municipality; and (2) any part of which is to be located in a county that contains a portion of the Edwards Aquifer. (b) Promptly after a petition is filed with the commission to create a district to which this section applies, the commission shall notify the commissioners court of any county in which the proposed district is to be located. (c) The commissioners court of a county in which the proposed district is to be located may review the petition for creation and other evidence and information relating to the proposed district that the commissioners consider necessary. Petitioners for the creation of a district shall submit to the county commissioners court any relevant information requested by the commissioners court. (d) A proposed district may not be created and include land in a county to which this section applies unless the commissioners court of the county adopts a measure by majority vote stating that the county does not object to the inclusion of the land in the district. The commission by rule may adopt a deadline for the commissioners court of a county to object to the creation of a district for the purposes of this section. The commission may not approve a petition to create a district to which this section applies if the commissioners court of the county objects under this subsection. (e) The commissioners court of a county may request from the commission any information necessary for the purposes of this section. SECTION 4. Section 54.5161, Water Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) Except as provided by Subsection (c), before [Before] the commission gives final approval on any bond issue for the purpose of financing a project of a district located wholly or partly outside the extraterritorial jurisdiction of a city, the commission shall notify the county commissioners of the county in which the district is located that an application has been filed and give the county an opportunity within 30 days after notification to examine all information on file and submit a written opinion from the commissioners court stating any findings, conclusions, or other information that the commissioners court considers important to the commission's final determination. (c) Before the commission gives final approval on any bond issue for the purpose of financing a project of a district to which Section 54.0166 applies, in addition to the requirements of Subsections (a) and (b), the commission shall provide the commissioners court of the county an opportunity to reject the bond issue through a measure adopted by a majority vote of the commissioners court. The commissioners court of a county may request from the commission any information necessary for the purposes of this section. The commission may not give final approval to a bond issue rejected by the commissioners court of a county under this subsection. SECTION 5. (a) Section 54.0166, Water Code, as added by this Act, applies only to a petition for the creation of a municipal utility district filed with the Texas Commission on Environmental Quality on or after the effective date of this Act. A petition for the creation of a municipal utility district filed with the Texas Commission on Environmental Quality before the effective date of this Act is governed by the law in effect on the date the petition was filed, and the former law is continued in effect for that purpose. (b) Section 54.0166, Water Code, as added by this Act, does not affect the validity of a municipal utility district created by the Texas Commission on Environmental Quality before the effective date of this Act. (c) Section 54.5161, Water Code, as amended by this Act, applies only to an application submitted to the Texas Commission on Environmental Quality under that section on or after the effective date of this Act. An application submitted to the Texas Commission on Environmental Quality under Section 54.5161, Water Code, before the effective date of this Act is governed by the law in effect on that date, and the former law is continued in effect for that purpose. SECTION 6. This Act takes effect September 1, 2025.