Bill Text: TX HB669 | 2015-2016 | 84th Legislature | Introduced
Bill Title: Relating to the authority of a public utility agency to provide water and sewer service and enter into contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-04-15 - Left pending in committee [HB669 Detail]
Download: Texas-2015-HB669-Introduced.html
84R1995 JXC-F | ||
By: Bell | H.B. No. 669 |
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relating to the authority of a public utility agency to provide | ||
water and sewer service and enter into contracts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 572.001, Local Government Code, is | ||
amended by amending Subdivision (1) and adding Subdivision (4) to | ||
read as follows: | ||
(1) "Facility" means a facility necessary or | ||
incidental to the provision of water or sewer service, [ |
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property, equipment, or right of any kind useful in connection with | ||
providing water or sewer service [ |
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(4) "Water or sewer service" means the collection, | ||
transportation, treatment, or disposal of sewage or the | ||
conservation, storage, transportation, treatment, supply, sale, | ||
transfer, or distribution of water. | ||
SECTION 2. Section 572.011, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 572.011. AUTHORITY TO JOINTLY OWN FACILITIES. Two or | ||
more public entities that have the authority to provide water or | ||
sewer service [ |
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together as cotenants or co-owners to plan, finance, acquire, | ||
construct, own, operate, or maintain facilities to: | ||
(1) achieve economies of scale in providing essential | ||
water and sewage systems to the public; | ||
(2) promote the orderly economic development of this | ||
state; and | ||
(3) provide environmentally sound protection of this | ||
state's future water and wastewater needs. | ||
SECTION 3. Section 572.052(b), Local Government Code, is | ||
amended to read as follows: | ||
(b) A public entity may join in the creation of a public | ||
utility agency under this subchapter only if, at the time the | ||
concurrent ordinance is adopted, the entity has the authority to | ||
provide water or sewer service [ |
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disposing of a facility after creation of the agency. | ||
SECTION 4. Section 572.058, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 572.058. POWERS. (a) A public utility agency may not | ||
engage in any utility business other than providing water or sewer | ||
service [ |
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private entity [ |
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(b) A public utility agency may: | ||
(1) perform any act necessary to the full exercise of | ||
the agency's powers; | ||
(2) provide water or sewer service for compensation | ||
and acquire, operate, maintain, or control facilities in this state | ||
to provide the service; | ||
(3) enter into a contract, lease, or agreement with or | ||
accept a grant or loan from a: | ||
(A) department or agency of the United States; | ||
(B) department or [ |
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(C) [ |
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subdivision of this state; or | ||
(D) [ |
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person; | ||
(4) [ |
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any right, interest, or property the agency considers to be | ||
unnecessary for the efficient operation or maintenance of its | ||
facilities; and | ||
(5) [ |
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agency and its employees, facilities, and service. | ||
SECTION 5. Section 572.059, Local Government Code, is | ||
amended by amending Subsection (a) and adding Subsection (c) to | ||
read as follows: | ||
(a) A public utility agency may enter into [ |
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work contract using contracting and delivery procedures described | ||
by Chapter 2269, Government Code [ |
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(c) If a public utility agency facility requires emergency | ||
repairs and the agency determines that the delay posed by the | ||
contracting methods provided for in this section would prevent or | ||
substantially impair the provision of water or sewer service, | ||
contracts for the repair of the facility may be made by methods | ||
other than those required by this section. | ||
SECTION 6. Section 572.060, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 572.060. CONTRACTS FOR [ |
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SERVICES. A public utility agency may[ |
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[ |
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(1) [ |
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of water or sewer service; or [ |
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(2) to operate, maintain, or control facilities in | ||
this state for the provision of water or sewer service [ |
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SECTION 7. Section 572.061(a), Local Government Code, is | ||
amended to read as follows: | ||
(a) In contracting with a public or private entity for water | ||
or sewer service [ |
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agency must charge rates sufficient to produce revenue adequate to: | ||
(1) pay all expenses of operation and maintenance; | ||
(2) pay when due the principal of and interest on | ||
obligations issued under this subchapter; | ||
(3) pay the principal of and interest on any legal debt | ||
of the agency; | ||
(4) pay when due all sinking and reserve fund | ||
payments; and | ||
(5) fulfill any agreements made with the holders of | ||
any obligations. | ||
SECTION 8. The changes in law made by this Act apply only to | ||
a contract or construction project for which a public utility | ||
agency first advertises or otherwise requests bids, proposals, | ||
offers, or qualifications, or makes a similar solicitation, on or | ||
after the effective date of this Act. A contract or construction | ||
project for which a public utility agency first advertises or | ||
otherwise requests bids, proposals, offers, or qualifications, or | ||
makes a similar solicitation, before the effective date of this Act | ||
is governed by the law in effect on the date of the advertisement, | ||
request, or solicitation, and the former law is continued in effect | ||
for that purpose. | ||
SECTION 9. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |