Texas 2025 - 89th Regular

Texas House Bill HB3363 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R2670 MP-D
2	2	By: Canales H.B. No. 3363
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of certain regional conservation and
10	10	reclamation districts.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 59.001(b), Water Code, is amended to
13	13	read as follows:
14	14	(b) This chapter applies only in counties:
15	15	(1) with a population of at least 3.3 million or
16	16	bordering a county with a population of at least 3.3 million; or
17	17	(2) located on an international border that have a
18	18	population of more than 400,000 and contain at least two
19	19	municipalities, each of which has a population of 70,000 or more.
20	20	SECTION 2. Section 59.002(a), Water Code, is amended by
21	21	adding Subdivisions (4) and (5) to read as follows:
22	22	(4) "Water district" means a district created under
23	23	general law or a special Act operating under Chapter 36, 51, 55, 56,
24	24	58, or 65.
25	25	(5) "Commission" means the Texas Commission on
26	26	Environmental Quality.
27	27	SECTION 3. Section 59.003, Water Code, is amended by
28	28	amending Subsection (a) and adding Subsections (a-1), (a-2), (a-3),
29	29	(a-4), and (e) to read as follows:
30	30	(a) This subsection applies only to a district to be created
31	31	in a county described by Section 59.001(b)(1). A district may be
32	32	created by the commission pursuant to a petition submitted to the
33	33	commission as follows:
34	34	(1) the [The] boards of at least 20 percent of the
35	35	total number of municipal districts to be included in the proposed
36	36	district may jointly petition the commission for creation of a
37	37	district;[. The petition must describe the territory to be
38	38	included in the district and must include resolutions endorsing
39	39	creation of the district adopted by each municipal district to be
40	40	included in the district.]
41	41	(2) the [The] owner or owners of 2,000 or more
42	42	contiguous acres may petition the commission for creation of a
43	43	district;[.]
44	44	(3) the [The] commissioners courts of one or more
45	45	counties may petition the commission for the creation of a district
46	46	in any territory within the county; or[.]
47	47	(4) the [The] governing body of any municipality
48	48	[city] may petition the commission for the creation of a district in
49	49	any territory within the municipality [city] or its
50	50	extraterritorial jurisdiction.
51	51	(a-1) A petition described by Subsection (a)(1) must:
52	52	(1) describe the territory to be included in the
53	53	proposed district; and
54	54	(2) include resolutions endorsing the creation of the
55	55	proposed district adopted by each municipal district to be included
56	56	in the district.
57	57	(a-2) This subsection applies only to a district to be
58	58	created in a county described by Section 59.001(b)(2). A district
59	59	may be created by the commission pursuant to a petition submitted to
60	60	the commission as follows:
61	61	(1) the boards of at least 60 percent of the total
62	62	number of water districts to be included in the proposed district
63	63	may jointly petition the commission for the creation of a district
64	64	in any territory within the water districts;
65	65	(2) the commissioners courts of one or more counties
66	66	may petition the commission for the creation of a district in any
67	67	territory within the county;
68	68	(3) the governing body of one or more municipalities
69	69	may petition the commission for the creation of a district in any
70	70	territory within the municipality or its extraterritorial
71	71	jurisdiction; or
72	72	(4) the governing bodies of two or more water
73	73	districts, counties, or municipalities may jointly petition the
74	74	commission for the creation of a district.
75	75	(a-3) A petition described by Subsection (a-2)(1) must:
76	76	(1) describe the territory to be included in the
77	77	proposed district; and
78	78	(2) include resolutions endorsing the creation of the
79	79	district adopted by each water district to be included in the
80	80	district.
81	81	(a-4) A petition described by Subsection (a-2)(4) must:
82	82	(1) describe the territory to be included in the
83	83	proposed district; and
84	84	(2) include resolutions endorsing the creation of the
85	85	district adopted by each water district, county, or municipality to
86	86	be included in the district.
87	87	(e) Notwithstanding Section 59.021(h), a petition for the
88	88	creation of a district submitted to the commission under Subsection
89	89	(a-2) must request that the board of the proposed district be
90	90	elected to represent a geographic area. If the commission grants
91	91	the petition, the commission shall establish precincts from which
92	92	the directors are to be elected in accordance with that subsection
93	93	and designate polling locations inside the district.
94	94	SECTION 4. Section 59.007(c), Water Code, is amended to
95	95	read as follows:
96	96	(c) A copy of the order of the commission granting or
97	97	denying a petition shall be mailed to each municipality [city]
98	98	having extraterritorial jurisdiction in the county or counties in
99	99	which the district is to be located [that has requested notice of
100	100	hearings as provided by Section 54.019].
101	101	SECTION 5. Chapter 59, Water Code, is amended by adding
102	102	Subchapter A-1 to read as follows:
103	103	SUBCHAPTER A-1. PROVISIONS APPLICABLE TO CERTAIN DISTRICTS
104	104	Sec. 59.0111. APPLICABILITY. This subchapter applies only
105	105	to a district located wholly or partially in a county described by
106	106	Section 59.001(b)(2).
107	107	Sec. 59.0112. PURPOSES. (a) The creation of a district
108	108	must:
109	109	(1) serve a public use and benefit; and
110	110	(2) be essential to further the public purposes
111	111	described by this section.
112	112	(b) A district may be created to:
113	113	(1) enhance water security through collaboration and
114	114	cooperation;
115	115	(2) coordinate regional solutions and consolidation
116	116	of areawide water and wastewater services to enhance efficiency by
117	117	streamlining operations and decision making;
118	118	(3) develop an areawide water supply and wastewater
119	119	system in order to encourage:
120	120	(A) efficient service delivery;
121	121	(B) cost-effective rate structures;
122	122	(C) expanded capacity;
123	123	(D) the use of innovative technologies; and
124	124	(E) improved management performance; and
125	125	(4) develop strategies that will:
126	126	(A) reduce loss and waste of water;
127	127	(B) improve efficiency in the use of water;
128	128	(C) increase recycling and reuse of water;
129	129	(D) provide a sustainable water supply; and
130	130	(E) provide for wastewater management.
131	131	(c) A district shall:
132	132	(1) to improve reliability of the regional water
133	133	supply and reduce the vulnerability to drought, prioritize projects
134	134	that secure:
135	135	(A) reliable water supplies to cover the
136	136	projected water demands; or
137	137	(B) additional or new sources of water;
138	138	(2) improve efficiency by:
139	139	(A) streamlining operations;
140	140	(B) ensuring compliance with water quality
141	141	standards; and
142	142	(C) protecting existing water uses; and
143	143	(3) promote the public health, safety, and general
144	144	welfare of residents by:
145	145	(A) discouraging noncompliant water systems; or
146	146	(B) improving inefficient water systems.
147	147	Sec. 59.0113. GENERAL POWERS. (a) A district has all
148	148	powers necessary or incidental to exercise or implied by the
149	149	specific powers granted by this chapter.
150	150	(b) A district may take any action necessary or appropriate
151	151	to accomplish the purposes of the district.
152	152	Sec. 59.0114. IMPROVEMENT PROJECTS. (a) Except as
153	153	otherwise provided by this chapter, a district may provide, design,
154	154	construct, acquire, improve, relocate, operate, maintain, or
155	155	finance an improvement project to accomplish the public purposes
156	156	stated in this chapter using any money available to the district.
157	157	(b) A district may undertake an improvement project:
158	158	(1) inside the boundaries of the district; or
159	159	(2) in an area outside the district but adjacent to the
160	160	boundaries of the district if the project is for the purpose of
161	161	extending public infrastructure improvements beyond the district's
162	162	boundaries to a logical terminus to accomplish the public purposes
163	163	stated in this chapter.
164	164	(c) An improvement project may consist of:
165	165	(1) controlling, storing, preserving, treating,
166	166	reclaiming, or distributing stormwater, floodwater, or water from a
167	167	river or stream in the district for irrigation, power, municipal,
168	168	domestic, commercial, or other useful purposes;
169	169	(2) identifying new or additional water sources;
170	170	(3) constructing, acquiring, or improving water and
171	171	wastewater projects to serve an economically distressed area or
172	172	colonia;
173	173	(4) developing, operating, and maintaining
174	174	infrastructure to transport water that is made available by a
175	175	project described by this section;
176	176	(5) obtaining regulatory authority at the local,
177	177	state, or federal level to conserve, convey, and develop water
178	178	resources in the district;
179	179	(6) planning, developing, managing, maintaining, or
180	180	coordinating water and wastewater systems and services in the
181	181	district;
182	182	(7) collaborating for the construction, acquisition,
183	183	improvement, or enlargement of projects involving water
184	184	conservation, water supply development, water quality enhancement,
185	185	flood control, or drainage of stormwater and floodwater, including
186	186	aquifer recharge, chloride control, subsidence control, brush
187	187	control, regionalization, or desalination projects;
188	188	(8) implementing water conservation, water supply
189	189	development, desalination, brush control, regionalization, flood
190	190	control, drainage of stormwater and floodwater, wastewater
191	191	collection and treatment, or other projects that incorporate
192	192	multiple service areas into an areawide service facility or system
193	193	that serves the district;
194	194	(9) consolidating water or sewer systems into one
195	195	system with common ownership, management, and operation;
196	196	(10) interconnecting wastewater systems for regional
197	197	treatment or water systems for regional water supply;
198	198	(11) developing water supply projects that create new
199	199	or additional water sources for the district, including:
200	200	(A) desalination;
201	201	(B) aquifer storage and recovery projects; or
202	202	(C) the acquisition of groundwater or surface
203	203	water rights;
204	204	(12) planning and coordinating regional public water
205	205	and wastewater systems or sewer service facilities or systems owned
206	206	by a neighboring political subdivision through consolidation,
207	207	merger, or interconnection of public water and wastewater systems;
208	208	(13) acquiring the water supply or sewer service
209	209	facilities or systems owned by a neighboring political subdivision
210	210	through consolidation, merger, or interconnection of public water
211	211	and wastewater systems; or
212	212	(14) acquiring property or an interest in property in
213	213	connection with an authorized improvement project.
214	214	(d) A district may not undertake an improvement project
215	215	unless the board of directors of the district determines that the
216	216	project is necessary to accomplish a public purpose of the
217	217	district.
218	218	Sec. 59.0115. AUTHORITY TO ENTER INTO INTERLOCAL
219	219	AGREEMENTS. (a) A district may enter into an interlocal agreement
220	220	with a groundwater conservation district or water supply
221	221	corporation to:
222	222	(1) provide services related to water supply,
223	223	wastewater treatment, or flood control and mitigation;
224	224	(2) develop, operate, or maintain infrastructure
225	225	related to water supply, wastewater treatment, or flood control and
226	226	mitigation; or
227	227	(3) share facilities, resources, or personnel as
228	228	necessary to undertake an improvement project to accomplish a
229	229	public purpose of the district.
230	230	(b) An interlocal agreement under this section must be
231	231	approved by the governing bodies of the participating entities.
232	232	(c) The participating entities in an interlocal agreement
233	233	under this section may allocate costs based on any method,
234	234	including proportionate use, benefit, or another equitable basis.
235	235	Sec. 59.0116. REPORTING AND ACCOUNTABILITY. (a) A
236	236	district shall submit an annual report to the governing bodies of
237	237	the water districts, counties, and municipalities included within
238	238	the boundaries of the district detailing the district's activities,
239	239	expenditures, and finances.
240	240	(b) The water districts, counties, and municipalities shall
241	241	ensure that the district is subject to the appropriate auditing and
242	242	accountability measures applicable to the district.
243	243	Sec. 59.0117. ELECTIONS. (a) A district shall hold an
244	244	election on the uniform election date prescribed by Section 41.001,
245	245	Election Code, in November of each even-numbered year to elect the
246	246	appropriate number of directors.
247	247	(b) Except for a confirmation election described by Section
248	248	59.025 and a director election described by Subsection (a), a
249	249	district may not hold a bond election, maintenance tax election,
250	250	contract election, or other election on a date other than the
251	251	uniform election date prescribed by Section 41.001, Election Code,
252	252	in November of the applicable tax year.
253	253	(c) Notwithstanding Section 59.025(c), if the creation of a
254	254	district is defeated at a confirmation election, a subsequent
255	255	confirmation election may be held not less than six months after the
256	256	date of the preceding confirmation election.
257	257	(d) After confirmation of a district, the district shall
258	258	contract with the county election officer as provided by Subchapter
259	259	D, Chapter 31, Election Code, to perform all duties and functions of
260	260	the district in relation to a director election.
261	261	Sec. 59.0118. ELIGIBILITY TO VOTE. After confirmation of a
262	262	district, to be eligible to vote in an election of the district, a
263	263	person must be:
264	264	(1) a qualified voter as defined by Section 11.002,
265	265	Election Code; and
266	266	(2) a resident of the district.
267	267	Sec. 59.0119. PROCEDURES FOR IDENTIFYING VOTERS;
268	268	PROVISIONAL VOTING. (a) After the confirmation of a district, the
269	269	district shall submit to the voter registrar for the county a legal
270	270	description or map of the territory defined by the boundaries of the
271	271	district that is in sufficient detail to enable the voter registrar
272	272	to produce the official list of the district's eligible voters.
273	273	(b) The district shall submit the information required
274	274	under this section not later than the 30th day after the date of the
275	275	last day to order a general or special election.
276	276	(c) If the county election officer is unable to verify
277	277	whether a voter is eligible under Section 59.0118, the voter may be
278	278	accepted for provisional voting under Section 63.011, Election
279	279	Code.
280	280	Sec. 59.0120. EXCLUSION OF LAND OR TERRITORY. (a) The
281	281	board may exclude land or territory from the district only as
282	282	provided by Section 49.303, 49.3075, 49.3076, 49.310, or 54.748.
283	283	(b) The board may not exclude land or territory unless the
284	284	board receives a petition requesting the exclusion as provided by
285	285	Section 49.303, 49.3075, 49.3076, 49.310, or 54.748, as applicable.
286	286	A landowner who signs a petition for the exclusion of land or
287	287	territory from a district that is filed with the board of the
288	288	district as provided by the applicable section must submit a copy of
289	289	the petition to the commission.
290	290	(c) On receipt of a copy of a petition as provided by
291	291	Subsection (b), the executive director of the commission shall
292	292	request and review the most recent financial information pertaining
293	293	to the district to confirm that any exclusion of land or territory
294	294	from the district is conducted in accordance with the applicable
295	295	provisions of law.
296	296	(d) The executive director of the commission shall notify
297	297	the landowner and the district of the results of the review
298	298	conducted under Subsection (c) when the review is complete.
299	299	Sec. 59.0121. QUALIFICATIONS FOR DIRECTOR. To be qualified
300	300	to serve as a director, a person:
301	301	(1) must be eligible to hold office under Section
302	302	141.001, Election Code;
303	303	(2) may not be disqualified from serving as a director
304	304	under Section 59.0122; and
305	305	(3) must be a qualified voter of the district under
306	306	Section 59.0118.
307	307	Sec. 59.0122. DISQUALIFICATION OF DIRECTORS. (a) A person
308	308	is disqualified from serving as a director if the person:
309	309	(1) is currently a member of or has been appointed or
310	310	elected to the governing body of another political subdivision; or
311	311	(2) would be disqualified from serving as a director
312	312	under Section 49.052(a) if that subsection applied to the district.
313	313	(b) Sections 49.052(b), (c), and (d) apply to a district in
314	314	the same manner as those subsections apply to a district described
315	315	by Section 49.052(a).
316	316	(c) Sections 49.052(e) and (g) apply to a district.
317	317	Sec. 59.0123. INFORMATION REQUIRED ON DISTRICT WEBSITE.
318	318	(a) A district shall maintain and update an Internet website that
319	319	is searchable and intuitive to users.
320	320	(b) A district shall post regularly for public viewing on
321	321	the district's Internet website:
322	322	(1) the annual financial statement required by Section
323	323	140.005, Local Government Code;
324	324	(2) the annual audit report required by Section 49.191
325	325	or the annual financial dormancy affidavit submitted to the
326	326	executive director of the commission under Section 49.197;
327	327	(3) budget information of the district described by
328	328	Sections 26.18(4)-(8), Tax Code;
329	329	(4) property tax rate information of the district
330	330	described by Sections 26.18(9), (10), (12), and (13), Tax Code;
331	331	(5) operating information of the district described by
332	332	Sections 2051.202(d)(2)-(14), Government Code, as applicable,
333	333	including the name of the general manager of the district; and
334	334	(6) financial information of the district that
335	335	satisfies the requirements of Sections 403.0241(c)(9)-(11),
336	336	Government Code.
337	337	(c) A district shall publish on the district's Internet
338	338	website:
339	339	(1) the agenda for a board meeting not later than the
340	340	third day before the date the meeting is held; and
341	341	(2) the minutes of a board meeting not later than the
342	342	third day after the date the minutes are adopted.
343	343	(d) A district shall update the information posted on the
344	344	district's Internet website as required by this section routinely
345	345	as the information becomes available to the district.
346	346	Sec. 59.0124. SEARCHABLE DISTRICT EXPENDITURE DATABASE.
347	347	(a) A district shall establish and post on the district's Internet
348	348	website a database of district check register reports, including
349	349	district expenditures and contracts. The database must include the
350	350	amount, date, description, payor, and payee of the expenditures
351	351	and, if applicable, the parties to the contract.
352	352	(b) A district may not include in the database developed
353	353	under Subsection (a) a district employee's salary or personal
354	354	identifying information, as defined by Section 521.002, Business &
355	355	Commerce Code.
356	356	(c) A district shall display prominently a link to the
357	357	database established under this section on the district's Internet
358	358	website.
359	359	(d) The information provided in a district check register
360	360	report must be updated monthly.
361	361	(e) A district shall keep in the database information
362	362	required by this section related to an adopted budget until the
363	363	third anniversary of the date the budget was adopted.
364	364	Sec. 59.0125. ANNUAL FINANCIAL AUDIT REPORT PROVIDED TO
365	365	COMMISSION. (a) A district is subject to the audit requirements
366	366	of Section 49.191 unless the district is financially dormant under
367	367	Section 49.197. A district is not exempt under Section 49.198 from
368	368	the audit requirements unless the district:
369	369	(1) had no outstanding debt obligations during the
370	370	fiscal year; and
371	371	(2) did not issue any public securities, as defined by
372	372	Section 1201.002, Government Code, during the fiscal year.
373	373	(b) The district shall include in the annual audit report
374	374	budget-to-actual comparisons in connection with general purpose
375	375	external financial reporting to demonstrate compliance with
376	376	applicable law. The district shall include a budgetary comparison
377	377	schedule of the proprietary fund or enterprise fund to demonstrate
378	378	compliance with applicable law and contractual provisions.
379	379	(c) The district shall include in the annual audit report a
380	380	statistical section that provides a range of trend data covering
381	381	key financial indicators from the preceding 10 fiscal years, if
382	382	applicable, including general government revenue and expenditures,
383	383	property tax collections, and debt burden.
384	384	(d) The district shall prepare and present the commission's
385	385	supplementary information schedules in the district's annual audit
386	386	report.
387	387	(e) The information required by this section must be
388	388	subjected to the auditing procedures applied in the audit of the
389	389	basic financial statements and the independent auditor's opinion of
390	390	the information.
391	391	(f) Not later than the third day after the date the audit
392	392	required by this section is completed, the district shall publish
393	393	the audit on the district's Internet website.
394	394	Sec. 59.0126. REVIEW AND COMMENT ON BUDGET. A district
395	395	shall provide to the district's wholesale customers an opportunity
396	396	to review and comment on the district's annual budget for services
397	397	to those customers before the board adopts that budget.
398	398	Sec. 59.0127. INTERNET POSTING OF MEETING MATERIALS;
399	399	RECORDING OF CERTAIN HEARINGS. Section 551.1283, Government Code,
400	400	applies to a district in the same manner as that section applies to
401	401	districts described by that section.
402	402	SECTION 6. Section 59.052, Water Code, is amended to read as
403	403	follows:
404	404	Sec. 59.052. FILING OF PETITION. A petition requesting the
405	405	annexation of a defined area that is signed by a majority in value
406	406	of the owners of land in the defined area, as shown by the tax rolls
407	407	of the county or counties in which that area is located, that is
408	408	signed by 50 landowners if the number of landowners is more than 50,
409	409	that is signed by the single landowner of 2,000 or more acres of
410	410	land in the area, or that is signed by a majority of the governing
411	411	body of a municipal district, a water district, a county, or a
412	412	municipality [city] requesting annexation shall be filed with the
413	413	secretary of the board.
414	414	SECTION 7. Section 59.072, Water Code, is amended by
415	415	amending Subsection (b) and adding Subsection (d) to read as
416	416	follows:
417	417	(b) Except as specifically provided by this chapter,
418	418	Chapter 49 and Sections 54.018, [54.019(a), (b), (c), and (d),]
419	419	54.020, 54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208,
420	420	54.502 through 54.505, 54.507(b) and (c), 54.510, [through] 54.512,
421	421	54.514, [54.515,] 54.518, 54.520, 54.521, 54.601 through 54.604,
422	422	and 54.735 through 54.737 apply under this chapter.
423	423	(d) The following provisions do not apply to a district
424	424	located wholly or partly in a county described by Section
425	425	59.001(b)(2):
426	426	(1) Section 141.001(d), Election Code; and
427	427	(2) Sections 49.063(d) and (e), 49.102(j) and (k),
428	428	49.222(c), 49.316, 51.7131, and 54.739 through 54.747.
429	429	SECTION 8. Section 59.072(c), Water Code, is repealed.
430	430	SECTION 9. This Act takes effect September 1, 2025.