| 1 | 1 | | By: Seliger S.B. No. 675 |
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| 2 | 2 | | (In the Senate - Filed January 30, 2017; February 15, 2017, |
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| 3 | 3 | | read first time and referred to Committee on Agriculture, Water & |
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| 4 | 4 | | Rural Affairs; March 29, 2017, reported favorably by the following |
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| 5 | 5 | | vote: Yeas 5, Nays 0; March 29, 2017, sent to printer.) |
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| 6 | 6 | | Click here to see the committee vote |
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| 7 | 7 | | |
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| 8 | 8 | | |
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| 9 | 9 | | A BILL TO BE ENTITLED |
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| 10 | 10 | | AN ACT |
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| 11 | 11 | | relating to the development of and contracting for reclaimed water |
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| 12 | 12 | | facilities in certain municipalities. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Subchapter B, Chapter 552, Local Government |
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| 15 | 15 | | Code, is amended by adding Section 552.024 to read as follows: |
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| 16 | 16 | | Sec. 552.024. MUNICIPAL CONTRACT FOR RECLAIMED WATER |
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| 17 | 17 | | FACILITY IN CERTAIN MUNICIPALITIES. (a) In this section, |
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| 18 | 18 | | "reclaimed water project" means the design, construction, |
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| 19 | 19 | | equipment, repair, reconstruction, replacement, expansion, |
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| 20 | 20 | | operation, or maintenance of: |
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| 21 | 21 | | (1) a reclaimed water facility with a capacity of not |
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| 22 | 22 | | less than 10 million gallons per day to be owned by a municipality; |
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| 23 | 23 | | and |
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| 24 | 24 | | (2) related infrastructure. |
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| 25 | 25 | | (b) This section applies only to a home-rule municipality |
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| 26 | 26 | | that: |
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| 27 | 27 | | (1) has a population of at least 99,000 and not more |
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| 28 | 28 | | than 160,000; |
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| 29 | 29 | | (2) is located in two counties, only one of which has a |
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| 30 | 30 | | population of at least 132,000 and not more than 170,000; and |
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| 31 | 31 | | (3) owns and operates a water system, sewer system, or |
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| 32 | 32 | | combined system. |
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| 33 | 33 | | (c) A municipality to which this section applies may |
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| 34 | 34 | | execute, perform, and make payments under a contract with any |
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| 35 | 35 | | person for the development of a reclaimed water project and the |
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| 36 | 36 | | provision of water from that project. |
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| 37 | 37 | | (d) A contract entered into under this section is an |
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| 38 | 38 | | obligation of the municipality that: |
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| 39 | 39 | | (1) may provide that: |
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| 40 | 40 | | (A) the contract is payable from a pledge of the |
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| 41 | 41 | | revenues of the water system, sewer system, or combined system of |
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| 42 | 42 | | the municipality; or |
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| 43 | 43 | | (B) the payments from the municipality are an |
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| 44 | 44 | | operating expense of the water system, sewer system, or combined |
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| 45 | 45 | | system of the municipality; and |
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| 46 | 46 | | (2) may not be made payable from ad valorem taxes. |
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| 47 | 47 | | (e) A contract entered into under this section may: |
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| 48 | 48 | | (1) be in the form and on the terms considered |
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| 49 | 49 | | appropriate by the governing body of the municipality; |
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| 50 | 50 | | (2) be for the term approved by the governing body of |
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| 51 | 51 | | the municipality and contain an option to renew or extend the term; |
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| 52 | 52 | | (3) provide for the design, construction, and |
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| 53 | 53 | | financing of the reclaimed water project by the person with whom the |
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| 54 | 54 | | municipality contracts for the development of the reclaimed water |
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| 55 | 55 | | project; and |
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| 56 | 56 | | (4) provide for the provision of reclaimed water for |
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| 57 | 57 | | industrial purposes at specified rates for the term approved by the |
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| 58 | 58 | | governing body of the municipality as part of the consideration for |
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| 59 | 59 | | the acquisition of the reclaimed water project by the municipality. |
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| 60 | 60 | | (f) If a contract entered into under this section provides |
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| 61 | 61 | | for the design, construction, and financing of the reclaimed water |
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| 62 | 62 | | project by the person with whom the municipality contracts: |
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| 63 | 63 | | (1) a contract procurement or delivery requirement |
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| 64 | 64 | | applicable to the municipality does not apply to the reclaimed |
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| 65 | 65 | | water project; and |
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| 66 | 66 | | (2) Chapter 2254, Government Code, does not apply to |
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| 67 | 67 | | the reclaimed water project. |
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| 68 | 68 | | (g) Subchapter I, Chapter 271, applies to a written contract |
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| 69 | 69 | | entered into under this section as if the contract were a contract |
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| 70 | 70 | | described by Section 271.151(2). |
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| 71 | 71 | | (h) To the extent of a conflict with another statute or |
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| 72 | 72 | | municipal charter provision or ordinance, this section controls. |
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| 73 | 73 | | (i) The validity or enforceability of a contract entered |
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| 74 | 74 | | into under this section by a municipality is not affected if, after |
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| 75 | 75 | | the contract is entered into, the municipality no longer meets the |
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| 76 | 76 | | requirements described by Subsection (b). |
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| 77 | 77 | | SECTION 2. This Act applies to a contract entered into |
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| 78 | 78 | | before the effective date of this Act that is made contingent on |
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| 79 | 79 | | this Act taking effect. |
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| 80 | 80 | | SECTION 3. This Act takes effect immediately if it receives |
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| 81 | 81 | | a vote of two-thirds of all the members elected to each house, as |
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| 82 | 82 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 83 | 83 | | Act does not receive the vote necessary for immediate effect, this |
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| 84 | 84 | | Act takes effect September 1, 2017. |
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| 85 | 85 | | * * * * * |
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