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AN ACT
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relating to the development of and contracting for reclaimed water |
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facilities in certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 552, Local Government |
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Code, is amended by adding Section 552.024 to read as follows: |
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Sec. 552.024. MUNICIPAL CONTRACT FOR RECLAIMED WATER |
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FACILITY IN CERTAIN MUNICIPALITIES. (a) In this section, |
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"reclaimed water project" means the design, construction, |
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equipment, repair, reconstruction, replacement, expansion, |
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operation, or maintenance of: |
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(1) a reclaimed water facility with a capacity of not |
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less than 10 million gallons per day to be owned by a municipality; |
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and |
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(2) related infrastructure. |
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(b) This section applies only to a home-rule municipality |
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that: |
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(1) has a population of at least 99,000 and not more |
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than 160,000; |
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(2) is located in two counties, only one of which has a |
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population of at least 132,000 and not more than 170,000; and |
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(3) owns and operates a water system, sewer system, or |
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combined system. |
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(c) A municipality to which this section applies may |
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execute, perform, and make payments under a contract with any |
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person for the development of a reclaimed water project and the |
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provision of water from that project. |
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(d) A contract entered into under this section is an |
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obligation of the municipality that: |
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(1) may provide that: |
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(A) the contract is payable from a pledge of the |
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revenues of the water system, sewer system, or combined system of |
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the municipality; or |
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(B) the payments from the municipality are an |
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operating expense of the water system, sewer system, or combined |
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system of the municipality; and |
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(2) may not be made payable from ad valorem taxes. |
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(e) A contract entered into under this section may: |
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(1) be in the form and on the terms considered |
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appropriate by the governing body of the municipality; |
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(2) be for the term approved by the governing body of |
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the municipality and contain an option to renew or extend the term; |
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(3) provide for the design, construction, and |
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financing of the reclaimed water project by the person with whom the |
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municipality contracts for the development of the reclaimed water |
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project; and |
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(4) provide for the provision of reclaimed water for |
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industrial purposes at specified rates for the term approved by the |
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governing body of the municipality as part of the consideration for |
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the acquisition of the reclaimed water project by the municipality. |
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(f) If a contract entered into under this section provides |
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for the design, construction, and financing of the reclaimed water |
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project by the person with whom the municipality contracts: |
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(1) a contract procurement or delivery requirement |
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applicable to the municipality does not apply to the reclaimed |
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water project; and |
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(2) Chapter 2254, Government Code, does not apply to |
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the reclaimed water project. |
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(g) Subchapter I, Chapter 271, applies to a written contract |
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entered into under this section as if the contract were a contract |
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described by Section 271.151(2). |
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(h) To the extent of a conflict with another statute or |
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municipal charter provision or ordinance, this section controls. |
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(i) The validity or enforceability of a contract entered |
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into under this section by a municipality is not affected if, after |
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the contract is entered into, the municipality no longer meets the |
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requirements described by Subsection (b). |
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SECTION 2. This Act applies to a contract entered into |
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before the effective date of this Act that is made contingent on |
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this Act taking effect. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 101 was passed by the House on March |
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22, 2017, by the following vote: Yeas 145, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 101 was passed by the Senate on May |
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11, 2017, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |