Sec. 54.021.  GRANTING OR REFUSING PETITION.  (a)  If the commission finds that the petition conforms to the requirements of Section 54.015 and that the project is feasible and practicable and is necessary and would be a benefit to the land to be included in the district, the commission shall so find by its order and grant the petition.
(b)  In determining if the project 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)  the availability of comparable service from other systems, including but not limited to water districts, municipalities, and regional authorities;
(2)  the reasonableness of projected construction costs, tax rates, and water and sewer rates;  and
(3)  whether or not the district and its system and subsequent development within the district will have an unreasonable effect on the following:
(A)  land elevation;
(B)  subsidence;
(C)  groundwater level within the region;
(D)  recharge capability of a groundwater source;
(E)  natural run-off rates and drainage;
(F)  water quality;  and
(G)  total tax assessments on all land located within a district.
(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 so find and exclude all land which is not benefited from the proposed district and shall redefine the proposed district's boundaries accordingly.
(d)  If the commission finds that the petition does not conform to the requirements of Section 54.015 of this code or that the project is not feasible, practicable, necessary, or a benefit to the land in the district, the commission shall so find by its order and deny the petition.
(e)  A copy of the order of the commission granting or denying a petition shall be mailed to each city having extraterritorial jurisdiction in the county or counties in which the district is located who requested a hearing under Section 49.011.
Added by Acts 1971, 62nd Leg., p. 778, ch. 84, Sec. 1.  Amended by Acts 1975, 64th Leg., p. 1292, ch. 484, Sec. 1, eff. Sept. 1, 1975;  Acts 1997, 75th Leg., ch. 1070, Sec. 29, eff. Sept. 1, 1997.