H.B. No. 3363 proposes significant amendments to the Water Code in Texas, focusing on the establishment of regional conservation and reclamation districts. The bill applies to counties with populations of at least 3.3 million, those bordering such counties, and counties on international borders with populations exceeding 400,000 that contain at least two municipalities with populations of 70,000 or more. It introduces new definitions for "water district" and "commission," and outlines a petition process for creating a district that requires endorsements from a specified percentage of municipal or water districts involved. The bill also establishes a new subchapter detailing the purposes and powers of these districts, allowing them to undertake various improvement projects related to water supply, wastewater management, and flood control.

In addition to governance and operational transparency, the bill mandates that interlocal agreements be approved by the governing bodies of participating entities and allows for equitable cost allocation. Districts are required to submit annual reports on their activities and finances, ensuring accountability through auditing measures. The bill emphasizes transparency by requiring districts to maintain a searchable website with financial statements and audit reports. It also outlines the process for excluding land from a district and sets qualifications for directors, while repealing certain provisions and adding new ones that exempt specific districts from certain election code requirements. These changes are 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)