Texas 2023 - 88th Regular

Texas Senate Bill SB2180 Compare Versions

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Version 2 (New)

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1	1	88R4601 DIO-F
2	2	By: LaMantia S.B. No. 2180
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the powers of a public utility agency; providing
8	8	authority to issue bonds; providing authority to impose
9	9	assessments.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 572.012(a), Local Government Code, is
12	12	amended to read as follows:
13	13	(a) Each participating public entity may:
14	14	(1) use the entity's money to plan, acquire,
15	15	construct, own, operate, and maintain its interest in a facility;
16	16	(2) share in the facility;
17	17	(3) issue bonds and other securities to raise money
18	18	for a purpose described by Subdivision (1) in the same manner and to
19	19	the same extent and subject to the same conditions as would be
20	20	applicable if the public entity had sole ownership of the facility;
21	21	(4) acquire, for the use and benefit of each
22	22	participating public entity, land, easements, and property for a
23	23	facility by purchase or by exercising the power of eminent domain;
24	24	[and]
25	25	(5) transfer or otherwise convey the land, property,
26	26	or property interest or otherwise have the land, property, or
27	27	property interest become vested in other participating public
28	28	entities to the extent and in the manner agreed between the
29	29	entities;
30	30	(6) make an acquisition described by Subdivision (4)
31	31	through a purchase from a public or private entity; and
32	32	(7) for the use and benefit of each participating
33	33	public entity, acquire by purchase a public utility, as defined by
34	34	Section 13.002, Water Code, other than an affected county.
35	35	SECTION 2. Sections 572.051(2) and (3), Local Government
36	36	Code, are amended to read as follows:
37	37	(2) "Obligation" means a [revenue] bond or note
38	38	secured by a revenue, fee, charge, assessment, or other revenue of
39	39	an agency available for that purpose.
40	40	(3) "Public utility agency" means an agency created
41	41	under this subchapter by two or more public entities to acquire,
42	42	plan, finance, construct, own, operate, or maintain facilities.
43	43	SECTION 3. Section 572.053, Local Government Code, is
44	44	amended to read as follows:
45	45	Sec. 572.053. CHANGES IN PUBLIC ENTITIES PARTICIPATING IN
46	46	PUBLIC UTILITY AGENCY. (a) The public entities that participate in
47	47	a public utility agency may by concurrent ordinances add a public
48	48	entity to, or delete a public entity from, participation in the
49	49	public utility agency.
50	50	(b) A participating public entity may withdraw from a public
51	51	utility agency by providing an ordinance or resolution of the
52	52	governing body of the participating public entity to the agency not
53	53	later than the 180th day before the proposed date of withdrawal. A
54	54	participating public entity may not withdraw from a public utility
55	55	agency under this subsection if bonds, notes, or other obligations
56	56	of the agency are secured by the revenues of the participating
57	57	public entity, unless the agency adopts a resolution approving the
58	58	withdrawal. Upon withdrawal, a participating public entity assumes
59	59	the outstanding debt attributable to that entity from the agency on
60	60	a prorated basis equal to that entity's benefit and has, without
61	61	compensation from the agency, no further rights, duties, or
62	62	obligations relating to the agency or ability to receive service
63	63	from the facilities of the agency.
64	64	SECTION 4. Section 572.058, Local Government Code, is
65	65	amended by amending Subsection (b) and adding Subsection (c) to
66	66	read as follows:
67	67	(b) A public utility agency may:
68	68	(1) perform any act necessary to the full exercise of
69	69	the agency's powers, including acts necessary to acquire, finance,
70	70	own, operate, or manage a facility of the agency;
71	71	(2) enter into a contract, lease, or agreement,
72	72	including an interlocal contract as authorized by Chapter 791,
73	73	Government Code, with or accept a grant or loan from any of the
74	74	following entities for the management and operation of an agency
75	75	facility or the acquisition, construction, financing, maintenance,
76	76	operation, provision, or receipt of a facility, service, or product
77	77	[a]:
78	78	(A) a department or agency of the United States;
79	79	(B) a department, agency, or municipality or
80	80	other political subdivision of this state; or
81	81	(C) a public or private corporation or person;
82	82	(3) sell, lease, convey, or otherwise dispose of all
83	83	or a portion of any right, interest, or property the agency
84	84	considers to be unnecessary for the efficient operation or
85	85	maintenance of its facilities; and
86	86	(4) adopt rules to govern the operation of the agency
87	87	and its employees, facilities, and service.
88	88	(c) Except as limited by a concurrent ordinance under which
89	89	the public utility agency is created, an agency may exercise any
90	90	right or power granted by general law to a county or municipality or
91	91	a district or authority created under Section 59, Article XVI,
92	92	Texas Constitution, to accomplish the purposes of the agency,
93	93	including issuing bonds payable from special assessments in the
94	94	manner provided by Chapter 372. This subsection does not authorize
95	95	a public utility agency to impose a tax.
96	96	SECTION 5. Section 572.062, Local Government Code, is
97	97	amended by amending Subsections (a) and (b) and adding Subsections
98	98	(b-1) and (b-2) to read as follows:
99	99	(a) A public utility agency may:
100	100	(1) issue obligations, including anticipation notes,
101	101	to accomplish the purposes of the agency; and
102	102	(2) finance or refund the acquisition, construction,
103	103	expansion, and improvement of all or a portion of a facility
104	104	relating to an agency purpose.
105	105	(b) Except as provided by Subsection (b-1), the [The] public
106	106	utility agency may pledge to the payment of the obligations the
107	107	revenue of all or part of its facilities, including facilities
108	108	acquired after the obligations are issued:
109	109	(1) revenues received from a public entity by contract
110	110	as authorized by a concurrent ordinance;
111	111	(2) special assessments:
112	112	(A) imposed by the agency in the manner provided
113	113	by Chapter 372; or
114	114	(B) imposed by a public entity and provided by
115	115	contract to the agency; or
116	116	(3) any other funds of the agency.
117	117	(b-1) Operation [However, operation] and maintenance
118	118	expenses, including salaries and labor, materials, and repairs of
119	119	facilities necessary to render efficient service, are a first lien
120	120	on and charge against the pledged revenue.
121	121	(b-2) A public utility agency may not use a facility owned
122	122	by the agency to secure or collateralize a new facility without the
123	123	approval by resolution of each participating public entity
124	124	participating in the joint financing of the new facility. This
125	125	subsection does not apply to the use of revenue from a facility
126	126	owned by the agency to secure or collateralize a new facility.
127	127	SECTION 6. Subchapter C, Chapter 572, Local Government
128	128	Code, is amended by adding Section 572.065 to read as follows:
129	129	Sec. 572.065. LIABILITY. Liability for the facilities and
130	130	management of the agency must be transferred to the agency on
131	131	ownership of the facilities by the agency.
132	132	SECTION 7. This Act takes effect immediately if it receives
133	133	a vote of two-thirds of all the members elected to each house, as
134	134	provided by Section 39, Article III, Texas Constitution. If this
135	135	Act does not receive the vote necessary for immediate effect, this
136	136	Act takes effect September 1, 2023.