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  H.B. No. 3378
 
 
 
 
AN ACT
  relating to the requirements governing municipal consent to the
  creation or expansion of certain water districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 42.042(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 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. 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 [Section] 54.016(e) and (i), Water Code.
         SECTION 2.  Section 54.016, Water Code, is amended by adding
  Subsections (i) and (j) to read as follows:
         (i)  This subsection applies only to a city with a population
  of 500,000 or more located in a county with a population of 1.4
  million or more in which two or more cities or towns with a
  population of 300,000 or more are predominately located.  A city may
  provide in its written consent to the inclusion of land in a
  district that a district water facility that serves land developed
  and subdivided into lots of less than one acre must meet the fire
  flow requirements to which the city is subject.
         (j)  A city may supplement its written consent in settlement
  of a water rate dispute with a district, and the terms of the
  supplement remain in effect after expiration of the written consent
  unless the city and the district agree otherwise.
         SECTION 3.  (a)  Section 54.016(i), Water Code, as added by
  this Act, applies only to a political subdivision that adds land on
  or after the effective date of this Act.  A political subdivision
  that adds land before the effective date of this Act is governed by
  the law in effect on the date the land was added, and the former law
  is continued in effect for that purpose.
         (b)  Section 54.016(j), Water Code, as added by this Act,
  applies to a supplement to a municipality's consent to the
  inclusion of land in a district in effect on or after the effective
  date of this Act.
         SECTION 4.  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, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3378 was passed by the House on May
  10, 2007, by the following vote:  Yeas 138, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3378 on May 25, 2007, by the following vote:  Yeas 136, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3378 was passed by the Senate, with
  amendments, on May 23, 2007, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor