1. (a) If the commission finds that the resolution conforms to the requirements of Section 65.015 and that the request for conversion is feasible and practicable and is necessary and would be a benefit to the land proposed to be included in the district, the commission shall make these findings in an order and shall authorize the creation of the district on approval at the confirmation and directors' election called and held under this subchapter.

2. (b) In determining if the request for conversion is feasible and practicable and if it is necessary and would be a benefit to the land included in the district, the commission shall consider:

   1. (1) the availability of comparable service from other systems, including water districts, municipalities, and regional authorities;
   2. (2) the reasonableness of projected construction costs, if any, tax rates, and water and sewer rates; and

   3. (3) whether or not the district and its system and subsequent development within the district will have an unreasonable effect on the following:

      1. (A) land elevation;
      2. (B) subsidence;
      3. (C) groundwater level within the region;
      4. (D) recharge capability of a groundwater source;
      5. (E) natural runoff rates and drainage; and
      6. (F) water quality.
3. (c) If the commission finds that not all of the land proposed to be included in the district will be benefited by the creation of the district, the commission shall formally make this finding and shall exclude all land that is not benefited from the proposed district and shall redefine the proposed district's boundaries accordingly.
4. (d) If the commission finds that the resolution does not conform to the requirements of Section 65.015 of this code or that the request for conversion is not feasible, practicable, necessary, or a benefit to the land in the district, the commission shall make this finding in its order and shall deny the creation of the district.
5. (e) A copy of the order of the commission granting or denying the request for conversion stated in the resolution must be mailed to each city that has extraterritorial jurisdiction in a county in which the proposed district is located and that requested notice of hearing as provided by Section 65.019 of this code.

Added by Acts 1983, 68th Leg., p. 2448, ch. 435, Sec. 4, eff. Aug. 29, 1983.

Amended by Acts 1985, 69th Leg., ch. 447, Sec. 1, eff. Nov. 15, 1985;

Acts 1997, 75th Leg., ch. 1070, Sec. 42, eff. Sept. 1, 1997.