84R1995 JXC-F
By: Zaffirini S.B. No. 1121
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a public utility agency to provide
water and sewer service and enter into contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 572.001, Local Government Code, is
amended by amending Subdivision (1) and adding Subdivision (4) to
read as follows:
(1) "Facility" means a facility necessary or
incidental to the provision of water or sewer service, [the
collection, transportation, treatment, or disposal of sewage or to
the conservation, storage, transportation, treatment, or
distribution of water,] including a plant site, right-of-way, and
property, equipment, or right of any kind useful in connection with
providing water or sewer service [the collection, transportation,
treatment, or disposal of sewage or with the conservation, storage,
transportation, treatment, or distribution of water].
(4) "Water or sewer service" means the collection,
transportation, treatment, or disposal of sewage or the
conservation, storage, transportation, treatment, supply, sale,
transfer, or distribution of water.
SECTION 2. Section 572.011, Local Government Code, is
amended to read as follows:
Sec. 572.011. AUTHORITY TO JOINTLY OWN FACILITIES. Two or
more public entities that have the authority to provide water or
sewer service [engage in the collection, transportation,
treatment, or disposal of sewage or the conservation, storage,
transportation, treatment, or distribution of water] may join
together as cotenants or co-owners to plan, finance, acquire,
construct, own, operate, or maintain facilities to:
(1) achieve economies of scale in providing essential
water and sewage systems to the public;
(2) promote the orderly economic development of this
state; and
(3) provide environmentally sound protection of this
state's future water and wastewater needs.
SECTION 3. Section 572.052(b), Local Government Code, is
amended to read as follows:
(b) A public entity may join in the creation of a public
utility agency under this subchapter only if, at the time the
concurrent ordinance is adopted, the entity has the authority to
provide water or sewer service [engage in the collection,
transportation, treatment, or disposal of sewage or the
conservation, storage, transportation, treatment, or distribution
of water]. This subsection does not prohibit a public entity from
disposing of a facility after creation of the agency.
SECTION 4. Section 572.058, Local Government Code, is
amended to read as follows:
Sec. 572.058. POWERS. (a) A public utility agency may not
engage in any utility business other than providing water or sewer
service [the collection, transportation, treatment, or disposal of
sewage or the conservation, storage, transportation, treatment, or
distribution of water] for or to a [participating] public or
private entity [that owns jointly with the agency a facility in this
state].
(b) A public utility agency may:
(1) perform any act necessary to the full exercise of
the agency's powers;
(2) provide water or sewer service for compensation
and acquire, operate, maintain, or control facilities in this state
to provide the service;
(3) enter into a contract, lease, or agreement with or
accept a grant or loan from a:
(A) department or agency of the United States;
(B) department or [,] agency of this state;
(C) [, or municipality or other] political
subdivision of this state; or
(D) [(C)] public or private corporation or
person;
(4) [(3)] sell, lease, convey, or otherwise dispose of
any right, interest, or property the agency considers to be
unnecessary for the efficient operation or maintenance of its
facilities; and
(5) [(4)] adopt rules to govern the operation of the
agency and its employees, facilities, and service.
SECTION 5. Section 572.059, Local Government Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) A public utility agency may enter into [award] a public
work contract using contracting and delivery procedures described
by Chapter 2269, Government Code [for construction of an
improvement that involves the expenditure of more than $20,000 only
on the basis of competitive bids].
(c) If a public utility agency facility requires emergency
repairs and the agency determines that the delay posed by the
contracting methods provided for in this section would prevent or
substantially impair the provision of water or sewer service,
contracts for the repair of the facility may be made by methods
other than those required by this section.
SECTION 6. Section 572.060, Local Government Code, is
amended to read as follows:
Sec. 572.060. CONTRACTS FOR [SEWER OR] WATER OR SEWER
SERVICES. A public utility agency may[:
[(1)] contract with a [the] public or private entity:
(1) [entities creating the agency] for the provision
of water or sewer service; or [collection, transportation,
treatment, or disposal of sewage or the conservation, storage,
transportation, treatment, or distribution of water; and]
(2) to operate, maintain, or control facilities in
this state for the provision of water or sewer service [under terms
the agency's board of directors considers appropriate, contract
with private entities for services described by Subdivision (1)].
SECTION 7. Section 572.061(a), Local Government Code, is
amended to read as follows:
(a) In contracting with a public or private entity for water
or sewer service [wastewater collection, transmission, treatment,
or disposal services or for water conservation, storage,
transportation, treatment, or distribution,] a public utility
agency must charge rates sufficient to produce revenue adequate to:
(1) pay all expenses of operation and maintenance;
(2) pay when due the principal of and interest on
obligations issued under this subchapter;
(3) pay the principal of and interest on any legal debt
of the agency;
(4) pay when due all sinking and reserve fund
payments; and
(5) fulfill any agreements made with the holders of
any obligations.
SECTION 8. The changes in law made by this Act apply only to
a contract or construction project for which a public utility
agency first advertises or otherwise requests bids, proposals,
offers, or qualifications, or makes a similar solicitation, on or
after the effective date of this Act. A contract or construction
project for which a public utility agency first advertises or
otherwise requests bids, proposals, offers, or qualifications, or
makes a similar solicitation, before the effective date of this Act
is governed by the law in effect on the date of the advertisement,
request, or solicitation, and the former law is continued in effect
for that purpose.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.