House Bill No. 3363 amends the Water Code to facilitate the creation of regional conservation and reclamation districts in Texas, specifically targeting counties with populations of at least 3.3 million, those bordering such counties, and counties on international borders with populations exceeding 400,000 that have at least two municipalities with populations of 70,000 or more. The bill introduces new definitions for "water district" and "commission," and modifies the petition process for establishing a district, increasing the required percentage of municipal districts to jointly petition from 20% to 60% in certain scenarios. It also establishes a new subchapter detailing the purposes and powers of these districts, which include water supply development, wastewater management, and flood control, while promoting collaboration through interlocal agreements.

In addition to governance and operational transparency enhancements, the bill mandates that districts obtain approval for interlocal agreements from the governing bodies of participating entities and allows for equitable cost allocation. It requires districts to submit annual reports on their activities and finances, ensuring accountability through auditing measures. The bill also outlines election procedures for district boards, including voter eligibility and director qualifications. To promote transparency, districts must maintain a searchable website with financial statements and audit reports, and provide opportunities for wholesale customers to review annual budgets. Certain provisions are repealed, and specific election code sections are clarified as not applicable to districts in designated counties, with the bill set to take effect on September 1,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)