| 1 | 1 | | 87R11713 SCL-D |
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| 2 | 2 | | By: Dominguez H.B. No. 4288 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a required period for a municipality or water district |
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| 8 | 8 | | to begin construction on certain projects. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. The heading to Subtitle C, Title 13, Local |
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| 11 | 11 | | Government Code, is amended to read as follows: |
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| 12 | 12 | | SUBTITLE C. WATER AND UTILITIES PROVISIONS APPLYING TO MORE THAN |
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| 13 | 13 | | ONE TYPE OF LOCAL GOVERNMENT |
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| 14 | 14 | | SECTION 2. Subtitle C, Title 13, Local Government Code, is |
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| 15 | 15 | | amended by adding Chapter 574 to read as follows: |
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| 16 | 16 | | CHAPTER 574. REQUIREMENTS FOR CERTAIN PROJECTS |
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| 17 | 17 | | Sec. 574.001. DEFINITIONS. In this chapter: |
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| 18 | 18 | | (1) "Project" means a water supply or treatment |
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| 19 | 19 | | system, a water distribution system, a sanitary sewage collection |
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| 20 | 20 | | or treatment system, works or improvements necessary for drainage |
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| 21 | 21 | | of land, roads and improvements in aid of roads, or any other work, |
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| 22 | 22 | | construction, or improvement supported by an increase in a tax or |
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| 23 | 23 | | utility rate. |
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| 24 | 24 | | (2) "Water district" means a district created under |
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| 25 | 25 | | Section 59, Article XVI, Texas Constitution. |
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| 26 | 26 | | Sec. 574.002. ONE-YEAR REQUIREMENT TO BEGIN PROJECT. A |
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| 27 | 27 | | municipality or water district shall begin construction of a |
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| 28 | 28 | | project for which the municipality or district raises a tax or |
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| 29 | 29 | | utility rate not later than the first anniversary of the date the |
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| 30 | 30 | | municipality or district initially raised that rate. |
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| 31 | 31 | | Sec. 574.003. LOWER RATE AND REFUND REQUIRED. If a |
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| 32 | 32 | | municipality or water district violates Section 574.002, the |
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| 33 | 33 | | municipality or district shall: |
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| 34 | 34 | | (1) lower the tax or utility rate to the rate in effect |
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| 35 | 35 | | immediately before the rate was raised for the project that is the |
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| 36 | 36 | | subject of the violation; and |
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| 37 | 37 | | (2) refund to each taxpayer or ratepayer, as |
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| 38 | 38 | | applicable, an amount equal to the amount paid by the taxpayer or |
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| 39 | 39 | | ratepayer for the project that is the subject of the violation. |
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| 40 | 40 | | SECTION 3. Chapter 574, Local Government Code, as added by |
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| 41 | 41 | | this Act, applies only to a project for which a tax or utility rate |
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| 42 | 42 | | is raised on or after the effective date of this Act. |
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| 43 | 43 | | SECTION 4. This Act takes effect September 1, 2021. |
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