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