By: Craddick (Senate Sponsor - Seliger) H.B. No. 101
(In the Senate - Received from the House March 27, 2017;
April 6, 2017, read first time and referred to Committee on
Administration; May 9, 2017, reported favorably by the following
vote: Yeas 6, Nays 0; May 9, 2017, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the development of and contracting for reclaimed water
facilities in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 552, Local Government
Code, is amended by adding Section 552.024 to read as follows:
Sec. 552.024. MUNICIPAL CONTRACT FOR RECLAIMED WATER
FACILITY IN CERTAIN MUNICIPALITIES. (a) In this section,
"reclaimed water project" means the design, construction,
equipment, repair, reconstruction, replacement, expansion,
operation, or maintenance of:
(1) a reclaimed water facility with a capacity of not
less than 10 million gallons per day to be owned by a municipality;
and
(2) related infrastructure.
(b) This section applies only to a home-rule municipality
that:
(1) has a population of at least 99,000 and not more
than 160,000;
(2) is located in two counties, only one of which has a
population of at least 132,000 and not more than 170,000; and
(3) owns and operates a water system, sewer system, or
combined system.
(c) A municipality to which this section applies may
execute, perform, and make payments under a contract with any
person for the development of a reclaimed water project and the
provision of water from that project.
(d) A contract entered into under this section is an
obligation of the municipality that:
(1) may provide that:
(A) the contract is payable from a pledge of the
revenues of the water system, sewer system, or combined system of
the municipality; or
(B) the payments from the municipality are an
operating expense of the water system, sewer system, or combined
system of the municipality; and
(2) may not be made payable from ad valorem taxes.
(e) A contract entered into under this section may:
(1) be in the form and on the terms considered
appropriate by the governing body of the municipality;
(2) be for the term approved by the governing body of
the municipality and contain an option to renew or extend the term;
(3) provide for the design, construction, and
financing of the reclaimed water project by the person with whom the
municipality contracts for the development of the reclaimed water
project; and
(4) provide for the provision of reclaimed water for
industrial purposes at specified rates for the term approved by the
governing body of the municipality as part of the consideration for
the acquisition of the reclaimed water project by the municipality.
(f) If a contract entered into under this section provides
for the design, construction, and financing of the reclaimed water
project by the person with whom the municipality contracts:
(1) a contract procurement or delivery requirement
applicable to the municipality does not apply to the reclaimed
water project; and
(2) Chapter 2254, Government Code, does not apply to
the reclaimed water project.
(g) Subchapter I, Chapter 271, applies to a written contract
entered into under this section as if the contract were a contract
described by Section 271.151(2).
(h) To the extent of a conflict with another statute or
municipal charter provision or ordinance, this section controls.
(i) The validity or enforceability of a contract entered
into under this section by a municipality is not affected if, after
the contract is entered into, the municipality no longer meets the
requirements described by Subsection (b).
SECTION 2. This Act applies to a contract entered into
before the effective date of this Act that is made contingent on
this Act taking effect.
SECTION 3. 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, 2017.
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