Certain districts may not impose unduly burdensome pipeline-construction requirements, and any fees charged to a retail public utility or developer must not exceed the district’s actual, reasonable, documented costs.
Sec. 49.2127. PIPELINE FEES AND REQUIREMENTS IMPOSED BY CERTAIN DISTRICTS. (a) In this section: (1) "Developer" means a person who owns land in a district who: (A) has divided or proposes to divide the land into two or more parts; or (B) requests more than two water or sewer service connections on a single contiguous tract of land. (2) "Retail public utility" has the meaning assigned by Section 13.002. (b) This section applies only to a district whose territory is located wholly or partly in a county: (1) located on the Gulf of Mexico and an international border; or (2) adjacent to a county described by Subdivision (1). (c) Notwithstanding Section 49.002, this section prevails over a special law governing a district. (d) A district may not impose on a retail public utility that proposes to construct a water or sewer pipeline or associated infrastructure in the district's service area: (1) requirements for constructing the pipeline that are unduly burdensome; or (2) a fee that is greater than the actual, reasonable, and documented costs incurred by the district for review, legal services, engineering services, inspection, construction, and repair associated with the retail public utility construction, and any other related costs incurred by the district in association with the retail public utility construction. (e) A district may not impose on a developer that proposes to construct a water or sewer pipeline or associated infrastructure in the district's service area a fee that is greater than the actual, reasonable, and documented costs incurred by the district for review, legal services, engineering services, inspection, construction, repair, and infrastructure relocation or conversion associated with the construction, and any other related costs incurred by the district in association with the construction of a subdivision. Added by Acts 2021, 87th Leg., R.S., Ch. 1022 (S.B. 2185), Sec. 8, eff. September 1, 2021. Amended by: Acts 2025, 89th Leg., R.S., Ch. 980 (S.B. 612), Sec. 1, eff. June 20, 2025.