Texas 2015 - 84th Regular

Texas Senate Bill SB1121 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R1995 JXC-F
2	2	By: Zaffirini S.B. No. 1121
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of a public utility agency to provide
8	8	water and sewer service and enter into contracts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 572.001, Local Government Code, is
11	11	amended by amending Subdivision (1) and adding Subdivision (4) to
12	12	read as follows:
13	13	(1) "Facility" means a facility necessary or
14	14	incidental to the provision of water or sewer service, [the
15	15	collection, transportation, treatment, or disposal of sewage or to
16	16	the conservation, storage, transportation, treatment, or
17	17	distribution of water,] including a plant site, right-of-way, and
18	18	property, equipment, or right of any kind useful in connection with
19	19	providing water or sewer service [the collection, transportation,
20	20	treatment, or disposal of sewage or with the conservation, storage,
21	21	transportation, treatment, or distribution of water].
22	22	(4) "Water or sewer service" means the collection,
23	23	transportation, treatment, or disposal of sewage or the
24	24	conservation, storage, transportation, treatment, supply, sale,
25	25	transfer, or distribution of water.
26	26	SECTION 2. Section 572.011, Local Government Code, is
27	27	amended to read as follows:
28	28	Sec. 572.011. AUTHORITY TO JOINTLY OWN FACILITIES. Two or
29	29	more public entities that have the authority to provide water or
30	30	sewer service [engage in the collection, transportation,
31	31	treatment, or disposal of sewage or the conservation, storage,
32	32	transportation, treatment, or distribution of water] may join
33	33	together as cotenants or co-owners to plan, finance, acquire,
34	34	construct, own, operate, or maintain facilities to:
35	35	(1) achieve economies of scale in providing essential
36	36	water and sewage systems to the public;
37	37	(2) promote the orderly economic development of this
38	38	state; and
39	39	(3) provide environmentally sound protection of this
40	40	state's future water and wastewater needs.
41	41	SECTION 3. Section 572.052(b), Local Government Code, is
42	42	amended to read as follows:
43	43	(b) A public entity may join in the creation of a public
44	44	utility agency under this subchapter only if, at the time the
45	45	concurrent ordinance is adopted, the entity has the authority to
46	46	provide water or sewer service [engage in the collection,
47	47	transportation, treatment, or disposal of sewage or the
48	48	conservation, storage, transportation, treatment, or distribution
49	49	of water]. This subsection does not prohibit a public entity from
50	50	disposing of a facility after creation of the agency.
51	51	SECTION 4. Section 572.058, Local Government Code, is
52	52	amended to read as follows:
53	53	Sec. 572.058. POWERS. (a) A public utility agency may not
54	54	engage in any utility business other than providing water or sewer
55	55	service [the collection, transportation, treatment, or disposal of
56	56	sewage or the conservation, storage, transportation, treatment, or
57	57	distribution of water] for or to a [participating] public or
58	58	private entity [that owns jointly with the agency a facility in this
59	59	state].
60	60	(b) A public utility agency may:
61	61	(1) perform any act necessary to the full exercise of
62	62	the agency's powers;
63	63	(2) provide water or sewer service for compensation
64	64	and acquire, operate, maintain, or control facilities in this state
65	65	to provide the service;
66	66	(3) enter into a contract, lease, or agreement with or
67	67	accept a grant or loan from a:
68	68	(A) department or agency of the United States;
69	69	(B) department or [,] agency of this state;
70	70	(C) [, or municipality or other] political
71	71	subdivision of this state; or
72	72	(D) [(C)] public or private corporation or
73	73	person;
74	74	(4) [(3)] sell, lease, convey, or otherwise dispose of
75	75	any right, interest, or property the agency considers to be
76	76	unnecessary for the efficient operation or maintenance of its
77	77	facilities; and
78	78	(5) [(4)] adopt rules to govern the operation of the
79	79	agency and its employees, facilities, and service.
80	80	SECTION 5. Section 572.059, Local Government Code, is
81	81	amended by amending Subsection (a) and adding Subsection (c) to
82	82	read as follows:
83	83	(a) A public utility agency may enter into [award] a public
84	84	work contract using contracting and delivery procedures described
85	85	by Chapter 2269, Government Code [for construction of an
86	86	improvement that involves the expenditure of more than $20,000 only
87	87	on the basis of competitive bids].
88	88	(c) If a public utility agency facility requires emergency
89	89	repairs and the agency determines that the delay posed by the
90	90	contracting methods provided for in this section would prevent or
91	91	substantially impair the provision of water or sewer service,
92	92	contracts for the repair of the facility may be made by methods
93	93	other than those required by this section.
94	94	SECTION 6. Section 572.060, Local Government Code, is
95	95	amended to read as follows:
96	96	Sec. 572.060. CONTRACTS FOR [SEWER OR] WATER OR SEWER
97	97	SERVICES. A public utility agency may[:
98	98	[(1)] contract with a [the] public or private entity:
99	99	(1) [entities creating the agency] for the provision
100	100	of water or sewer service; or [collection, transportation,
101	101	treatment, or disposal of sewage or the conservation, storage,
102	102	transportation, treatment, or distribution of water; and]
103	103	(2) to operate, maintain, or control facilities in
104	104	this state for the provision of water or sewer service [under terms
105	105	the agency's board of directors considers appropriate, contract
106	106	with private entities for services described by Subdivision (1)].
107	107	SECTION 7. Section 572.061(a), Local Government Code, is
108	108	amended to read as follows:
109	109	(a) In contracting with a public or private entity for water
110	110	or sewer service [wastewater collection, transmission, treatment,
111	111	or disposal services or for water conservation, storage,
112	112	transportation, treatment, or distribution,] a public utility
113	113	agency must charge rates sufficient to produce revenue adequate to:
114	114	(1) pay all expenses of operation and maintenance;
115	115	(2) pay when due the principal of and interest on
116	116	obligations issued under this subchapter;
117	117	(3) pay the principal of and interest on any legal debt
118	118	of the agency;
119	119	(4) pay when due all sinking and reserve fund
120	120	payments; and
121	121	(5) fulfill any agreements made with the holders of
122	122	any obligations.
123	123	SECTION 8. The changes in law made by this Act apply only to
124	124	a contract or construction project for which a public utility
125	125	agency first advertises or otherwise requests bids, proposals,
126	126	offers, or qualifications, or makes a similar solicitation, on or
127	127	after the effective date of this Act. A contract or construction
128	128	project for which a public utility agency first advertises or
129	129	otherwise requests bids, proposals, offers, or qualifications, or
130	130	makes a similar solicitation, before the effective date of this Act
131	131	is governed by the law in effect on the date of the advertisement,
132	132	request, or solicitation, and the former law is continued in effect
133	133	for that purpose.
134	134	SECTION 9. This Act takes effect immediately if it receives
135	135	a vote of two-thirds of all the members elected to each house, as
136	136	provided by Section 39, Article III, Texas Constitution. If this
137	137	Act does not receive the vote necessary for immediate effect, this
138	138	Act takes effect September 1, 2015.