By Pickett                                            H.B. No. 2954
       74R8054 CAG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the term and conditions of certain interlocal contracts
    1-3  and litigation resulting from the contracts.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 791.001, Government Code, is amended to
    1-6  read as follows:
    1-7        Sec. 791.001.  PURPOSE.  The purpose of this chapter is to
    1-8  increase the efficiency and effectiveness of local governments by
    1-9  authorizing them to contract, to the greatest possible extent, with
   1-10  a broad range of governmental <one another and with> agencies <of
   1-11  the state>.
   1-12        SECTION 2.  Section 791.003(4), Government Code, is amended
   1-13  to read as follows:
   1-14              (4)  "Local government" means a:
   1-15                    (A)  county, municipality, special district, or
   1-16  other political subdivision of this state or a state that borders
   1-17  this state, including a state of the United Mexican States; or
   1-18                    (B)  combination of two or more of those
   1-19  entities.
   1-20        SECTION 3.   Section 791.026, Government Code, is amended to
   1-21  read as follows:
   1-22        Sec. 791.026.  CONTRACTS FOR WATER SUPPLY AND WASTEWATER
   1-23  TREATMENT FACILITIES.  (a)  A municipality, district, or river
   1-24  authority of this state may contract with any of the following
    2-1  entities for a purpose described by Subsection (b):
    2-2              (1)  an international agency;
    2-3              (2)  an interstate agency;
    2-4              (3)  an agency of the United States;
    2-5              (4)  an agency of the United Mexican States;
    2-6              (5)  an agency of this state or a state that borders
    2-7  this state, including a state of the United Mexican States;
    2-8              (6)  a river authority of this state; or
    2-9              (7)  a local government.
   2-10        (b)  An interlocal contract may be made <another
   2-11  municipality, district, or river authority of this state> to obtain
   2-12  or provide part or all of:
   2-13              (1)  the preparation of plans for, and the
   2-14  determination of the feasibility, finance, design, construction,
   2-15  operation, maintenance, and provision of, water supply or
   2-16  wastewater treatment facilities; or
   2-17              (2)  a lease or operation of water supply facilities or
   2-18  wastewater treatment facilities.
   2-19        (c) <(b)>  The contract may provide that the municipality,
   2-20  district, or river authority obtaining one of the services may not
   2-21  obtain those services from a source other than a contracting party,
   2-22  except as provided by the contract.
   2-23        (d) <(c)>  If a contract includes a term described by
   2-24  Subsection (c) <(b)>, payments made under the contract are the
   2-25  paying party's operating expenses for its water supply system,
   2-26  wastewater treatment facilities, or both.
   2-27        (e) <(d)>  The contract may:
    3-1              (1)  contain terms and extend for any period on which
    3-2  the parties agree; and
    3-3              (2)  provide that it will continue in effect until
    3-4  bonds specified by the contract and any refunding bonds issued to
    3-5  pay those bonds are paid.
    3-6        (f) <(e)>  Tax revenue may not be pledged to the payment of
    3-7  amounts agreed to be paid under the contract.
    3-8        (g) <(f)>  The powers granted by this section prevail over a
    3-9  limitation contained in another law.
   3-10        (h)  A contract between a local government of this state and
   3-11  a local government of a state that borders this state, including a
   3-12  state of the United Mexican States, must provide that the laws and
   3-13  judicial decisions of this state regarding sovereign immunity or
   3-14  the waiver of sovereign immunity apply to any claim brought against
   3-15  a local government of this state or its employees arising out of
   3-16  the acts or omissions of the local government's employees acting in
   3-17  the employee's scope of employment that occurred in the bordering
   3-18  state.
   3-19        (i)  In this section, the term "scope of employment" has the
   3-20  meaning assigned the term by Section 101.001, Civil Practice and
   3-21  Remedies Code.
   3-22        SECTION 4.  Section 101.001(4), Civil Practice and Remedies
   3-23  Code, is amended to read as follows:
   3-24              (4)  "Scope of employment" means the performance for a
   3-25  governmental unit of the duties of an employee's office or
   3-26  employment and includes being in or about the performance of a task
   3-27  lawfully assigned to an employee by competent authority, including
    4-1  a task performed:
    4-2                    (A)  in this state;
    4-3                    (B)  in a state that borders this state,
    4-4  including a state of the United Mexican States; or
    4-5                    (C)  any other place.
    4-6        SECTION 5.  Subchapter C, Chapter 101, Civil Practice and
    4-7  Remedies Code, is amended by adding Sections 101.064 and 101.065 to
    4-8  read as follows:
    4-9        Sec. 101.064.  ACTIONS OUTSIDE JURISDICTIONAL BOUNDARIES.
   4-10  This chapter applies to an action or omission of a governmental
   4-11  employee acting within the employee's scope of employment in:
   4-12              (1)  this state;
   4-13              (2)  a state that borders this state, including a state
   4-14  of the United Mexican States; or
   4-15              (3)  any other place.
   4-16        Sec. 101.065.  RECOGNITION OF SOVEREIGN IMMUNITY OF FOREIGN
   4-17  STATES.  This state shall recognize and apply the provisions of a
   4-18  foreign state's law regarding sovereign immunity or the waiver of
   4-19  sovereign immunity in any case brought against a foreign state or
   4-20  its employees arising out of the actions or omissions of the
   4-21  foreign state or its employees if:
   4-22              (1)  the foreign state applies the provision of this
   4-23  chapter, and other laws or judicial decisions of this state
   4-24  regarding sovereign immunity or the waiver of sovereign immunity
   4-25  arising out of activities of a governmental unit of this state or
   4-26  its employees in the foreign state; and
   4-27              (2)  the application of the foreign state's laws or
    5-1  judicial decisions regarding sovereign immunity are not against the
    5-2  public policy of this state.
    5-3        SECTION 6.  This Act applies only to a suit filed on or after
    5-4  the effective date of this Act. A suit filed before the effective
    5-5  date of this Act is governed by the law as it existed immediately
    5-6  before the effective date of this Act, and that law is continued in
    5-7  effect for that purpose.
    5-8        SECTION 7.  The importance of this legislation and the
    5-9  crowded condition of the calendars in both houses create an
   5-10  emergency and an imperative public necessity that the
   5-11  constitutional rule requiring bills to be read on three several
   5-12  days in each house be suspended, and this rule is hereby suspended,
   5-13  and that this Act take effect and be in force from and after its
   5-14  passage, and it is so enacted.