86R27839 BRG-F
By: Bell of Montgomery H.B. No. 4114
Substitute the following for H.B. No. 4114:
By: Farrar C.S.H.B. No. 4114
A BILL TO BE ENTITLED
AN ACT
relating to the provision of water and sewer services by a
municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 552, Local Government Code, is amended
by adding Subchapter I to read as follows:
SUBCHAPTER I. MUNICIPAL WATER AND SEWER SERVICES
Sec. 552.201. PROCUREMENT OF WATER AND SEWER SERVICES. (a)
A nonprofit entity or governmental entity located inside the
service area of a municipality or municipally owned utility may
contract with that municipality or utility to purchase water and
wastewater service capacity or to obtain water and wastewater
services.
(b) A municipality or municipally owned utility may recover
capital costs from a nonprofit entity or governmental entity
related to the purchase of water or wastewater service capacity by
that entity or the provision of water or wastewater services to that
entity.
(c) A nonprofit entity or governmental entity may construct
and operate water or wastewater facilities on the entity's property
for use by only that entity.
Sec. 552.202. RECOVERY OF THIRD-PARTY COSTS. Another
entity may not require a municipality or municipally owned utility
to impose a water or wastewater service charge to recover an amount
owed to the other entity.
Sec. 552.203. PROHIBITION ON RATE DISCRIMINATION. A
municipality or municipally owned utility may not establish a rate
applicable only to entities that qualify for a sales tax or ad
valorem tax exemption that is:
(1) based solely on the tax-exempt status of the
entities; and
(2) higher than a rate established for entities that
receive comparable utility services.
SECTION 2. This Act takes effect September 1, 2019.