SB 2685

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
(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
(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
(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
(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
(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.