S.B. No. 1226 amends the Water Code to establish regional conservation and reclamation districts in Texas, specifically targeting counties with populations of at least 3.3 million, those bordering such counties, and certain counties on international borders with populations exceeding 400,000. The bill introduces new definitions for "water district" and "commission," and outlines a petition process for creating these districts based on the population criteria. It also establishes a new subchapter detailing the purposes and powers of the districts, which include water supply development, wastewater management, and flood control, while promoting interlocal agreements for collaborative efforts.

The bill enhances governance and operational transparency within water districts by requiring interlocal agreements to be approved by governing bodies and allowing cost allocation based on equitable methods. It mandates annual reports on activities and finances, establishes election procedures for district boards, and emphasizes transparency through the maintenance of a searchable website for financial statements and audit reports. Additionally, it provides wholesale customers the opportunity to review and comment on annual budgets. The bill repeals certain provisions and clarifies that specific election code sections do not apply to districts in designated counties, with an effective date set for September 1, 2025.

Statutes affected:
Introduced: Water Code 59.001, Water Code 59.002, Water Code 59.003, Water Code 59.007, Water Code 59.052, Water Code 59.072 (Water Code 59)