| 12 | | - | SECTION 1. Chapter 552, Local Government Code, is amended |
|---|
| 13 | | - | by adding Subchapter I to read as follows: |
|---|
| 14 | | - | SUBCHAPTER I. MUNICIPAL WATER AND SEWER SERVICES |
|---|
| 15 | | - | Sec. 552.201. PROCUREMENT OF WATER AND SEWER SERVICES. (a) |
|---|
| 16 | | - | A nonprofit entity or governmental entity located inside the |
|---|
| 17 | | - | service area of a municipality or municipally owned utility may |
|---|
| 18 | | - | contract with that municipality or utility to purchase water and |
|---|
| 19 | | - | wastewater service capacity or to obtain water and wastewater |
|---|
| 20 | | - | services. |
|---|
| 21 | | - | (b) A municipality or municipally owned utility may recover |
|---|
| 22 | | - | capital costs from a nonprofit entity or governmental entity |
|---|
| 23 | | - | related to the purchase of water or wastewater service capacity by |
|---|
| 24 | | - | that entity or the provision of water or wastewater services to that |
|---|
| 25 | | - | entity. |
|---|
| 26 | | - | (c) A nonprofit entity or governmental entity may construct |
|---|
| 27 | | - | and operate water or wastewater facilities on the entity's property |
|---|
| 28 | | - | for use by only that entity. |
|---|
| 29 | | - | Sec. 552.202. RECOVERY OF THIRD-PARTY COSTS. Another |
|---|
| 30 | | - | entity may not require a municipality or municipally owned utility |
|---|
| 31 | | - | to impose a water or wastewater service charge to recover an amount |
|---|
| 32 | | - | owed to the other entity. |
|---|
| 33 | | - | Sec. 552.203. PROHIBITION ON RATE DISCRIMINATION. A |
|---|
| 34 | | - | municipality or municipally owned utility may not establish a rate |
|---|
| 35 | | - | applicable only to entities that qualify for a sales tax or ad |
|---|
| 36 | | - | valorem tax exemption that is: |
|---|
| 37 | | - | (1) based solely on the tax-exempt status of the |
|---|
| 38 | | - | entities; and |
|---|
| 39 | | - | (2) higher than a rate established for entities that |
|---|
| 40 | | - | receive comparable utility services. |
|---|
| 10 | + | SECTION 1. Subchapter D, Chapter 13, Water Code, is amended |
|---|
| 11 | + | by adding Section 13.0835 to read as follows: |
|---|
| 12 | + | Sec. 13.0835. PROHIBITION ON RATE DISCRIMINATION. A |
|---|
| 13 | + | municipality or a municipally owned utility may not establish a |
|---|
| 14 | + | rate applicable only to entities that qualify for a sales tax or ad |
|---|
| 15 | + | valorem tax exemption that is higher than a rate established for |
|---|
| 16 | + | entities that receive comparable utility services. |
|---|