89R3055 MP-D By: Cook S.B. No. 2887 A BILL TO BE ENTITLED AN ACT relating to the consideration of water conservation by the Texas Commission on Environmental Quality when determining whether to grant or deny a petition for the creation of a municipal utility district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 54.015, Water Code, is amended to read as follows: Sec. 54.015. CONTENTS OF PETITION. The petition shall: (1) describe the boundaries of the proposed district by metes and bounds or by lot and block number, if there is a recorded map or plat and survey of the area; (2) state the general nature of the work proposed to be done, the necessity for the work, and the cost of the project as then estimated by those filing the petition; [and] (3) include a water conservation plan that meets the requirements of Section 13.146, regardless of whether that section applies to the district; and (4) include a name of the district which shall be generally descriptive of the locale of the district followed by the words Municipal Utility District, or if a district is located within one county, it may be designated "__________ County Municipal Utility District No. ______." (Insert the name of the county and proper consecutive number.) The proposed district shall not have the same name as any other district in the same county. SECTION 2. Section 54.021(b), Water Code, is amended to read as follows: (b) In determining if the project is feasible and practicable and if it is necessary and would be a benefit to the land included in the district, the commission shall consider: (1) the availability of comparable service from other systems, including but not limited to water districts, municipalities, and regional authorities; (2) the reasonableness of projected construction costs, tax rates, and water and sewer rates; and (3) whether or not the district and its system and subsequent development within the district will have an unreasonable effect on the following: (A) land elevation; (B) subsidence; (C) groundwater level within the region; (D) recharge capability of a groundwater source; (E) natural run-off rates and drainage; (F) water quality; [and] (G) water conservation; and (H) total tax assessments on all land located within a district. SECTION 3. This Act applies only to a petition requesting the creation of a municipal utility district that is filed with the Texas Commission on Environmental Quality on or after the effective date of this Act. A petition requesting the creation of a municipal utility district that was filed with the commission 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. SECTION 4. This Act takes effect September 1, 2025.