Relating to the powers, duties, and governance of the Starr County Drainage District, the change of the name of the Starr County Drainage District to the Starr County Drainage and Groundwater Conservation District, the dissolution of the Starr County Groundwater Conservation District, and the transfer of the assets and liabilities of the Starr County Groundwater Conservation District to the Starr County Drainage and Groundwater Conservation District; authorizing the imposition of a tax.

89(R) HB 5320 - Enrolled version - Bill Text

H.B. No. 5320

AN ACT

relating to the powers, duties, and governance of the Starr County

Drainage District, the change of the name of the Starr County

Drainage District to the Starr County Drainage and Groundwater

Conservation District, the dissolution of the Starr County

Groundwater Conservation District, and the transfer of the assets

and liabilities of the Starr County Groundwater Conservation

District to the Starr County Drainage and Groundwater Conservation

District; authorizing the imposition of a tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 6606, Special District Local Laws Code,

is transferred to Subtitle X, Title 6, Special District Local Laws

Code, redesignated as Chapter 11022, Special District Local Laws

Code, and amended to read as follows:

CHAPTER
11022
[
6606
]. STARR COUNTY DRAINAGE
AND GROUNDWATER

CONSERVATION
DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec.
11022.0101
[
6606.001
]. DEFINITIONS. In this

chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a member of the board.

(3) "District" means the Starr County Drainage
and

Groundwater Conservation
District.

Sec.
11022.0102
[
6606.002
]. NATURE OF DISTRICT. The

district is a drainage
and groundwater conservation
district

created in Starr County under Section 59, Article XVI, Texas

Constitution[
, subject to approval at a confirmation election under

Section 6606.102
].

Sec.
11022.0103
[
6606.003
]. FINDINGS OF BENEFIT AND

PURPOSE. (a) The district is created to serve a public use and

benefit.

(b) All land and other property included in the district

will benefit from the works and projects that are to be accomplished

by the district under powers conferred by Section 59, Article XVI,

Texas Constitution.

(c) The district is essential to accomplish the purposes of

Section 59, Article XVI, Texas Constitution.

Sec.
11022.0104
[
6606.004
]. DISTRICT TERRITORY. The

district territory is coextensive with the boundaries of Starr

County, Texas.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec.
11022.0201
[
6606.051
]. DIRECTORS. [
(a)
] The district

is governed by a board of five directors
appointed by the

[
consisting of the
] Commissioners Court of Starr County
as follows:

(1)

one director who is a bona fide agricultural

producer for whom a substantial portion of the person's income is

derived from conducting agricultural business in the district;

(2)

one director who is an employee of a rural water

supply entity in the district;

(3)

one director who represents municipal interests in

the district;

(4)

one director who represents active industrial

interests in the district; and

(5) one director who represents Starr County at large
.

[
(b)

Service on the board is an additional duty of office

for a member of the Commissioners Court of Starr County.
]

SUBCHAPTER C. POWERS
,
[
AND
] DUTIES
, AND FINANCIAL PROVISIONS

Sec.
11022.0301
[
6606.101
]. GENERAL POWERS AND DUTIES.

(a)
The district has all rights, powers, privileges, functions,

and duties provided by the general law of this state applicable to a

drainage district created under Section 59, Article XVI, Texas

Constitution, including Chapters
36,
49
,
and 56, Water Code.

(b)

The district may impose an ad valorem tax as provided by

Chapter 49, Water Code.

[
Sec.

6606.102.

CONFIRMATION ELECTION. (a) The board

shall hold an election to confirm the creation of the district.

[
(b)

Section 41.001(a), Election Code, does not apply to a

confirmation election under this section.

[
(c)

Except as provided by this section, the confirmation

election must be conducted as provided by Sections 49.102(a)-(f),

Water Code, and the Election Code.

[
(d)

The district is not required to elect directors at the

confirmation election.
]

Sec.
11022.0302
[
6606.103
]. UTILITY PROPERTY EXEMPTION

FROM IMPACT FEES, STANDBY FEES, AND ASSESSMENTS. The district may

not impose an impact fee, standby fee, or assessment on the

property, including the equipment, rights-of-way, easements,

facilities, or improvements, of:

(1) an electric utility or a power generation company

as defined by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or

121.001, Utilities Code;

(3) a telecommunications provider as defined by

Section 51.002, Utilities Code; or

(4) a person who provides to the public cable

television or advanced telecommunications services.

SECTION 2. Sections 8803.103 and 8803.104, Special District

Local Laws Code, are transferred to Subchapter C, Chapter 11022,

Special District Local Laws Code, as added by this Act,

redesignated as Sections 11022.0303 and 11022.0304, Special

District Local Laws Code, and amended to read as follows:

Sec.
11022.0303
[
8803.103
]. POWER TO CONTRACT WITH

MUNICIPALITIES. The district may enter into a contract with a

municipality to assume the functions of the municipality's

municipally owned utility. A contract under this section may

include provisions for the district's:

(1) assumption of the debts, liabilities, and

obligations of the municipally owned utility;

(2) ownership or use of the assets and facilities of

the municipally owned utility; and

(3) performance of the functions and services

previously provided by the municipally owned utility.

Sec.
11022.0304
[
8803.104
]. RELATION TO OTHER

WATER-RELATED ENTITIES. (a) To the extent that a rule of the

district conflicts with a rule of the regional water authority, the

rule of the authority controls.

(b) To the extent that a rule of the district conflicts with

an action of a municipally owned utility or water supply or sewer

service corporation whose certificated area is located wholly or

partly in the district's territory, the action of the utility or

corporation controls.

(c) Notwithstanding Subsections (a) and (b), to the extent

that a rule of the district concerning groundwater conflicts with a

rule of the regional water authority or with an action of a

municipally owned utility or water supply or sewer service

corporation whose certificated area is located wholly or partly in

the district's territory, the rule of the district controls.

SECTION 3. The following provisions of the Special District

Local Laws Code are repealed:

(1) Subchapters A, B, and D, Chapter 8803;

(2) Sections 8803.101 and 8803.102;

(3) the heading to Subchapter C, Chapter 8803; and

(4) the heading to Chapter 8803.

SECTION 4. (a) On the effective date of this Act:

(1) the Starr County Groundwater Conservation

District is dissolved;

(2) the terms of the directors of the Starr County

Groundwater Conservation District expire;

(3) any assets and liabilities of the Starr County

Groundwater Conservation District are transferred to the Starr

County Drainage and Groundwater Conservation District;

(4) a contract with any party and the Starr County

Groundwater Conservation District is a contract between that party

and the Starr County Drainage and Groundwater Conservation

District;

(5) an employee of the Starr County Groundwater

Conservation District is an employee of the Starr County Drainage

and Groundwater Conservation District;

(6) records of the Starr County Groundwater

Conservation District are records of the Starr County Drainage and

Groundwater Conservation District; and

(7) the Starr County Drainage and Groundwater

Conservation District may, in all respects, conduct the affairs of

the Starr County Groundwater Conservation District as provided by

Subsection (b) of this section.

(b) The Starr County Drainage and Groundwater Conservation

District shall take any action necessary to close the affairs of the

Starr County Groundwater Conservation District, including the

filing of any dissolution documents with the Texas Commission on

Environmental Quality.

SECTION 5. (a) The legal notice of the intention to

introduce this Act, setting forth the general substance of this

Act, has been published as provided by law, and the notice and a

copy of this Act have been furnished to all persons, agencies,

officials, or entities to which they are required to be furnished

under Section 59, Article XVI, Texas Constitution, and Chapter 313,

Government Code.

(b) The governor, one of the required recipients, has

submitted the notice and Act to the Texas Commission on

Environmental Quality.

(c) The Texas Commission on Environmental Quality has filed

its recommendations relating to this Act with the governor, the

lieutenant governor, and the speaker of the house of

representatives within the required time.

(d) All requirements of the constitution and laws of this

state and the rules and procedures of the legislature with respect

to the notice, introduction, and passage of this Act are fulfilled

and accomplished.

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.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 5320 was passed by the House on May

10, 2025, by the following vote: Yeas 85, Nays 43, 2 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 5320 was passed by the Senate on May

28, 2025, by the following vote: Yeas 27, Nays 4.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor