10 | 4 | | AN ACT |
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11 | 5 | | relating to the development of and contracting for reclaimed water |
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12 | 6 | | facilities in certain municipalities. |
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13 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 8 | | SECTION 1. Subchapter B, Chapter 552, Local Government |
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15 | 9 | | Code, is amended by adding Section 552.024 to read as follows: |
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16 | 10 | | Sec. 552.024. MUNICIPAL CONTRACT FOR RECLAIMED WATER |
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17 | 11 | | FACILITY IN CERTAIN MUNICIPALITIES. (a) In this section, |
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18 | 12 | | "reclaimed water project" means the design, construction, |
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19 | 13 | | equipment, repair, reconstruction, replacement, expansion, |
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20 | 14 | | operation, or maintenance of: |
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21 | 15 | | (1) a reclaimed water facility with a capacity of not |
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22 | 16 | | less than 10 million gallons per day to be owned by a municipality; |
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23 | 17 | | and |
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24 | 18 | | (2) related infrastructure. |
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25 | 19 | | (b) This section applies only to a home-rule municipality |
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26 | 20 | | that: |
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27 | 21 | | (1) has a population of at least 99,000 and not more |
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28 | 22 | | than 160,000; |
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29 | 23 | | (2) is located in two counties, only one of which has a |
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30 | 24 | | population of at least 132,000 and not more than 170,000; and |
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31 | 25 | | (3) owns and operates a water system, sewer system, or |
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32 | 26 | | combined system. |
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33 | 27 | | (c) A municipality to which this section applies may |
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34 | 28 | | execute, perform, and make payments under a contract with any |
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35 | 29 | | person for the development of a reclaimed water project and the |
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36 | 30 | | provision of water from that project. |
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37 | 31 | | (d) A contract entered into under this section is an |
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38 | 32 | | obligation of the municipality that: |
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39 | 33 | | (1) may provide that: |
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40 | 34 | | (A) the contract is payable from a pledge of the |
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41 | 35 | | revenues of the water system, sewer system, or combined system of |
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42 | 36 | | the municipality; or |
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43 | 37 | | (B) the payments from the municipality are an |
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44 | 38 | | operating expense of the water system, sewer system, or combined |
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45 | 39 | | system of the municipality; and |
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46 | 40 | | (2) may not be made payable from ad valorem taxes. |
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47 | 41 | | (e) A contract entered into under this section may: |
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48 | 42 | | (1) be in the form and on the terms considered |
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49 | 43 | | appropriate by the governing body of the municipality; |
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50 | 44 | | (2) be for the term approved by the governing body of |
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51 | 45 | | the municipality and contain an option to renew or extend the term; |
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52 | 46 | | (3) provide for the design, construction, and |
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53 | 47 | | financing of the reclaimed water project by the person with whom the |
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54 | 48 | | municipality contracts for the development of the reclaimed water |
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55 | 49 | | project; and |
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56 | 50 | | (4) provide for the provision of reclaimed water for |
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57 | 51 | | industrial purposes at specified rates for the term approved by the |
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58 | 52 | | governing body of the municipality as part of the consideration for |
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59 | 53 | | the acquisition of the reclaimed water project by the municipality. |
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60 | 54 | | (f) If a contract entered into under this section provides |
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61 | 55 | | for the design, construction, and financing of the reclaimed water |
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62 | 56 | | project by the person with whom the municipality contracts: |
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63 | 57 | | (1) a contract procurement or delivery requirement |
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64 | 58 | | applicable to the municipality does not apply to the reclaimed |
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65 | 59 | | water project; and |
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66 | 60 | | (2) Chapter 2254, Government Code, does not apply to |
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67 | 61 | | the reclaimed water project. |
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68 | 62 | | (g) Subchapter I, Chapter 271, applies to a written contract |
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69 | 63 | | entered into under this section as if the contract were a contract |
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70 | 64 | | described by Section 271.151(2). |
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71 | 65 | | (h) To the extent of a conflict with another statute or |
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72 | 66 | | municipal charter provision or ordinance, this section controls. |
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73 | 67 | | (i) The validity or enforceability of a contract entered |
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74 | 68 | | into under this section by a municipality is not affected if, after |
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75 | 69 | | the contract is entered into, the municipality no longer meets the |
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76 | 70 | | requirements described by Subsection (b). |
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77 | 71 | | SECTION 2. This Act applies to a contract entered into |
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78 | 72 | | before the effective date of this Act that is made contingent on |
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79 | 73 | | this Act taking effect. |
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80 | 74 | | SECTION 3. This Act takes effect immediately if it receives |
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81 | 75 | | a vote of two-thirds of all the members elected to each house, as |
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82 | 76 | | provided by Section 39, Article III, Texas Constitution. If this |
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83 | 77 | | Act does not receive the vote necessary for immediate effect, this |
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84 | 78 | | Act takes effect September 1, 2017. |
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