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House Bill 1224 |
House Author: Puente |
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Effective: 6-17-05 |
Senate Sponsor: Duncan |
A take-or-pay contract is one in which a buyer agrees to pay even if delivery of a product or service is declined or otherwise does not occur. In the context of water, for example, such a contract might exist between a wholesale supplier and a customer. House Bill 1224 directs the executive administrator of the Texas Water Development Board to conduct a study to determine the effects, if any, that take-or-pay contracts have on water conservation efforts. A report is due to the legislature by January 1, 2007, and the legislation expires on September 1, 2007.