Bill Text: TX HB5222 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to consent to the creation of certain political subdivisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-24 - Referred to Land & Resource Management [HB5222 Detail]
Download: Texas-2023-HB5222-Introduced.html
2023S0288-1 03/09/23 | ||
By: Bell of Montgomery | H.B. No. 5222 |
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relating to consent to the creation of certain political | ||
subdivisions. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 42.042(a), (b), (c), and (f), Local | ||
Government Code, are amended to read as follows: | ||
(a) A political subdivision, one purpose of which is to | ||
supply fresh water for domestic or commercial use or to furnish | ||
sanitary sewer services, roadways, or drainage, may not be created | ||
in the extraterritorial jurisdiction of a municipality unless the | ||
governing body of the municipality gives its written consent by | ||
ordinance or resolution in accordance with this subsection and the | ||
Water Code upon the written request to the municipality by the | ||
persons required by law to seek creation of the political | ||
subdivision. In giving its consent, the municipality may not place | ||
any conditions or other restrictions on the creation of the | ||
political subdivision other than those expressly permitted by | ||
Sections 54.016(i) and 54.0167 [ |
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request for municipal consent to create a political subdivision and | ||
the provision of related documents does not constitute an event | ||
that triggers or deems consent to municipal annexation of the land | ||
pursuant to an agreement under Subchapter G, Chapter 212, or | ||
Section 43.016. | ||
(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, on | ||
mutually agreeable terms within 30 [ |
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governing body receives a written request for the consent, [ |
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[ |
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consent to the creation of the proposed political subdivision. | ||
(f) The persons who requested city consent, or their | ||
successors and assigns, [ |
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Texas Commission on Environmental Quality for the creation of the | ||
political subdivision or the inclusion of the land in a political | ||
subdivision. The commission shall allow creation or confirmation | ||
of the creation of the political subdivision or inclusion of the | ||
land in a proposed political subdivision on finding that the | ||
municipality [ |
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SECTION 2. Section 42.0425(a), Local Government Code, is | ||
amended to read as follows: | ||
(a) A political subdivision, one purpose of which is to | ||
supply fresh water for domestic or commercial use or to furnish | ||
sanitary sewer services, roadways, or drainage, may not add land | ||
that is located in the extraterritorial jurisdiction of a | ||
municipality unless the governing body of the municipality gives | ||
its written consent by ordinance or resolution in accordance with | ||
Section 42.042 [ |
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consent, the municipality may not place any conditions or other | ||
restrictions on [ |
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than those expressly permitted by Section 54.0167 [ |
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Water Code. | ||
SECTION 3. The heading to Section 54.016, Water Code, is | ||
amended to read as follows: | ||
Sec. 54.016. CONSENT OF CITY TO IN-CITY DISTRICT. | ||
SECTION 4. Section 54.016, Water Code, is amended by | ||
amending Subsections (a), (b), (c), and (d) and adding Subsections | ||
(a-1), (a-2), and (a-3) to read as follows: | ||
(a) This section applies only to the inclusion of land | ||
within the corporate limits of a city in a district. Section | ||
42.042, Local Government Code, applies to the inclusion of land | ||
within the extraterritorial jurisdiction of a city in a district. | ||
(a-1) No land within the corporate limits of a city [ |
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included in a district unless the city grants its written consent, | ||
by resolution or ordinance, to the inclusion of the land within the | ||
district in accordance with [ |
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(a-2) The request to a city for its written consent to the | ||
creation of a district, shall conform to the requirements of | ||
Section 54.0166 [ |
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(a-3) If a city grants its written consent without the | ||
concurrence of the petitioner [ |
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[ |
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that the petitioning land owner or owners reasonably believe exceed | ||
the city's powers, such land owner or owners, or their successors | ||
and assigns, may petition the commission to create the district and | ||
to modify the conditions and restrictions of the city's consent. | ||
The commission may declare any provision of the consent to be null | ||
and void. The commission may approve the creation of a district | ||
that includes any portion of the land covered by the city's consent | ||
to creation of the district. The legislature may create and may | ||
validate the creation of a district that includes any portion of the | ||
land covered by the city's consent to the creation of the district. | ||
(b) If the governing body of a city fails or refuses to grant | ||
permission for the inclusion of land [ |
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special act of the legislature, within 60 [ |
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a written request, the petitioning land [ |
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owners, or their successors and assigns, [ |
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and request the city to provide [ |
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water or sanitary sewer service on the terms, conditions, cost, and | ||
time frame as contemplated to be provided by the district. | ||
(c) If the governing body of the city and [ |
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successors and assigns, [ |
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contract providing for the water or sanitary sewer service | ||
requested within 60 [ |
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failure shall constitute authorization for the inclusion of the | ||
land in the district under the provisions of this section. | ||
Authorization for the inclusion of such land within the district | ||
under the provisions of this section shall mean only authorization | ||
to initiate proceedings to include the land within the district as | ||
otherwise provided by this Act. | ||
(d) [ |
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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 petitioning land owner or | ||
owners, or their successors or assigns, [ |
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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 upon a finding that the city either | ||
does not have the reasonable ability to serve or has failed to | ||
execute a mutually agreeable contract. [ |
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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. [ |
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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 5. Section 54.0161, Water Code, is amended to read | ||
as follows: | ||
Sec. 54.0161. REVIEW OF CREATION BY CITY AND COUNTY. (a) A | ||
petitioner seeking to create a district all or part of which is to | ||
be located in the extraterritorial jurisdiction of a city shall | ||
provide evidence to the commission that the petitioner provided the | ||
city with a copy of the petition requesting creation and the | ||
associated application [ |
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(b) A petitioner seeking [ |
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to be located outside the corporate limits of a city shall provide | ||
evidence to the commission that the petitioner provided the county | ||
with a copy of the petition requesting creation and the associated | ||
application [ |
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(c) As applicable under Subsection (a) or (b), a city or | ||
county may review the petition requesting creation and the | ||
associated application as to whether the project is feasible and | ||
practicable, is necessary, and would be a benefit to the land to be | ||
included in the district under Section 54.021. A city or county may | ||
reasonably request to meet with the petitioner. | ||
(d) The governing body of a city or [ |
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[ |
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the governing body [ |
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submit to the commission, at least 30 [ |
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for action on the petition, a written opinion stating: | ||
(1) whether the governing body [ |
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recommends the creation of the proposed district; and | ||
(2) any findings, conclusions, and other information | ||
that the governing body [ |
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the commission in making a final determination on the petition | ||
under Section 54.021. | ||
(e) [ |
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the commission shall consider information relevant to the | ||
determination under Section 54.021 [ |
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by the governing body [ |
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SECTION 6. Subchapter B, Chapter 54, Water Code, is amended | ||
by adding Sections 54.0166 and 54.0167 to read as follows: | ||
Sec. 54.0166. PETITION FOR CITY CONSENT. A petition to a | ||
city for consent for inclusion of land within the corporate limits | ||
of a city in a district must: | ||
(1) be signed by a majority in value of the holders of | ||
title of the land within the proposed district, as indicated by the | ||
county tax rolls; | ||
(2) describe the boundaries of the land to be included | ||
in the district by metes and bounds or by lot and block number, if | ||
there is a recorded map or plat and survey of the area; and | ||
(3) 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. | ||
Sec. 54.0167. CITY CONSENT CONDITIONS. (a) A city consent | ||
to the inclusion of land within the corporate limits of the city or | ||
within the extraterritorial jurisdiction of a city in a district | ||
may impose no condition, restriction, or requirement other than the | ||
requirements that: | ||
(1) the district design and construct all water and | ||
sewer facilities to serve the land in accordance with the | ||
requirements of the commission or, for a district within the | ||
corporate limits of a city, the generally applicable city | ||
requirements; | ||
(2) the district design and construct all streets, | ||
roads, and drainage facilities to serve the land in accordance with | ||
subdivision requirements adopted by the county in which the | ||
district is located under Section 232.003, Local Government Code, | ||
or, for a district within the corporate limits of a city, the | ||
generally applicable city requirements; | ||
(3) the district engineer certify to the city that all | ||
district facilities are designed and constructed in accordance with | ||
applicable regulatory requirements; | ||
(4) the purposes for which the district may issue | ||
bonds are restricted to purposes authorized by law for the | ||
district; | ||
(5) bonds issued by the district will expressly | ||
provide that the district reserves the right to redeem the bonds on | ||
any date subsequent to a date not later than the 15th anniversary of | ||
the date of issuance without premium; | ||
(6) bonds, other than refunding bonds, be sold by | ||
public sale only after the taking of bids; | ||
(7) no bonds, other than refunding bonds, will be sold | ||
by the district for less that 95 percent of par; | ||
(8) the net effective interest rate on bonds sold by | ||
the district, taking into account any discount or premium as well as | ||
the interest rate borne by the bonds, will not exceed two percent | ||
above the highest average interest rate reported by the Bond Buyer | ||
in its weekly "20-Bond Index" during the one-month period next | ||
preceding the date notice of the sale of the bonds is given, and | ||
that bids for the bonds will be received not more than 45 days after | ||
notice of sale of the bonds is given, unless otherwise approved by | ||
the city or the commission; | ||
(9) refunding bonds provide both gross debt service | ||
savings and net present value savings of three percent or more of | ||
the principal amount of the refunded bonds, as determined by the | ||
district financial advisor, unless otherwise approved by the city | ||
or the commission; and | ||
(10) the date of the latest scheduled maturity of | ||
refunding bonds be not later than the date of the latest scheduled | ||
maturity of the refunded bonds, unless otherwise approved by the | ||
city or the commission. | ||
(b) A city consent to the inclusion of land in a district may | ||
not impose a condition, restriction, or requirement other than the | ||
requirements of Subsection (a). By way of illustration, a city | ||
consent may not include a condition, restriction, or requirement | ||
that: | ||
(1) limits the amounts or the timing of issuance of the | ||
bonds of the district; | ||
(2) limits the maturities of the bonds of the | ||
district; | ||
(3) requires annexation into the city or inclusion in | ||
the extraterritorial jurisdiction of the city; | ||
(4) requires connection to the water or wastewater | ||
system of the city or requires the city to be the retail or | ||
wholesale water or wastewater provider, except for a district | ||
within the corporate limits of a city; | ||
(5) requires the payment of costs to design and | ||
construct streets, roads, or bridges in excess of the proposed | ||
project's rough proportionate share under Section 212.904, Local | ||
Government Code; | ||
(6) requires the payment of costs to design and | ||
construct water, sewer, or drainage facilities in excess of the | ||
district's pro rata share under the rules of the commission; | ||
(7) requires the design or construction of facilities, | ||
including water, sewer, drainage, and roads, in excess of | ||
facilities otherwise necessary to serve the proposed project; | ||
(8) requires a payment to the city, except for a | ||
reasonable fee not to exceed $5,000 to cover the costs of processing | ||
the city's review of the creation petition and application; | ||
(9) requires the district or a developer of land | ||
within the district to pay to the city a portion of the proceeds of | ||
bonds issued by the district or any funds used by the district to | ||
reimburse a developer; | ||
(10) imposes any land use controls or zoning; | ||
(11) imposes any ordinances or platting, subdivision, | ||
or development requirements not generally applicable in the | ||
extraterritorial jurisdiction; and | ||
(12) requires a developer of land within the district | ||
to enter into a development agreement. | ||
(c) If a city grants its written consent to the creation of a | ||
district containing conditions or restrictions that violate this | ||
section, such conditions or restrictions are null, void, and | ||
unenforceable and a landowner may petition the commission to create | ||
the district and to modify the conditions and restrictions of a | ||
city's consent. If a city has previously granted its written | ||
consent to the creation of a district containing conditions or | ||
restrictions that violate this section, such conditions or | ||
restrictions are null, void, and unenforceable and a landowner or | ||
district may petition the commission to modify the conditions and | ||
restrictions of the city's consent. Upon the petition of a | ||
landowner or a district, or upon the commission's own motion, the | ||
commission shall declare any provision of the consent that violates | ||
this section to be null, void, and unenforceable. | ||
SECTION 7. The following laws are repealed: | ||
(1) Section 42.0425(c), Local Government Code; | ||
(2) Section 42.043, Local Government Code; and | ||
(3) Sections 54.016(e) and (f), Water Code. | ||
SECTION 8. 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, 2023. |