|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the authority of a fresh water supply district to issue |
|
|
bonds or to enter into a contract to convey property to another |
|
|
water district or water supply corporation. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter D, Chapter 53, Water Code, is amended |
|
|
by adding Section 53.105 to read as follows: |
|
|
Sec. 53.105. CONTRACTS WITH OTHER DISTRICTS OR WATER SUPPLY |
|
|
CORPORATIONS. (a) In this section, "authorized water district" |
|
|
means a district created under Section 52(b)(1) or (2), Article |
|
|
III, or Section 59, Article XVI, Texas Constitution. |
|
|
(b) A district may enter into a contract with an authorized |
|
|
water district or a water supply corporation that authorizes the |
|
|
district to acquire, through the issuance of debt or other means, |
|
|
and convey to the authorized water district or water supply |
|
|
corporation all or part of a water supply, treatment, or |
|
|
distribution system, a sanitary sewage collection or treatment |
|
|
system, or works or improvements necessary for drainage of land in |
|
|
the district. The contract may: |
|
|
(1) permit the district to rehabilitate, repair, |
|
|
maintain, improve, enlarge, or extend any existing facilities to be |
|
|
conveyed to the authorized water district or water supply |
|
|
corporation; or |
|
|
(2) require the district to pay impact fees or other |
|
|
fees to the authorized water district or water supply corporation |
|
|
for capacity or service in facilities of the authorized water |
|
|
district or water supply corporation. |
|
|
(c) The contract entered into under Subsection (b) may |
|
|
authorize the authorized water district or water supply corporation |
|
|
to purchase the water, sewer, or drainage system from the district |
|
|
through periodic payments to the district in amounts that, combined |
|
|
with the net income of the district, are sufficient for the district |
|
|
to pay the principal of and interest on any bonds of the district. |
|
|
The contract may provide that the payments due under this |
|
|
subsection: |
|
|
(1) are payable from and secured by a pledge of all or |
|
|
part of the revenue of the water, sewer, or drainage system; |
|
|
(2) are payable from taxes to be imposed by the |
|
|
authorized water district; or |
|
|
(3) are payable from a combination of the revenue and |
|
|
taxes described by Subdivisions (1) and (2). |
|
|
(d) The contract may authorize the authorized water |
|
|
district or water supply corporation to operate the water, sewer, |
|
|
or drainage system conveyed by the district under Subsection (b). |
|
|
(e) The contract may require the district to make available |
|
|
to the authorized water district or water supply corporation all or |
|
|
part of the raw or treated water to be used for the provision of |
|
|
services in the district. |
|
|
(f) If the contract provides for the water, sewer, or |
|
|
drainage system to be conveyed to the authorized water district or |
|
|
water supply corporation on or after the completion of |
|
|
construction, the authorized water district or water supply |
|
|
corporation may pay the district to provide water, sewer, or |
|
|
drainage services to residents of the authorized water district or |
|
|
customers of the water supply corporation. |
|
|
(g) The contract may authorize the district to convey to the |
|
|
authorized water district or water supply corporation at no cost a |
|
|
water, sewer, or drainage system and require the authorized water |
|
|
district or water supply corporation to use all or part of those |
|
|
systems to provide retail service to customers in the district in |
|
|
accordance with the laws of this state and any certificate of |
|
|
convenience and necessity of the authorized water district or water |
|
|
supply corporation. |
|
|
(h) A contract under this section must be approved by a |
|
|
majority vote of the governing bodies of the district and the |
|
|
authorized water district or water supply corporation. If Section |
|
|
52, Article III, or Section 59, Article XVI, Texas Constitution, |
|
|
requires that qualified voters of the district approve the |
|
|
imposition of a tax by the district or the authorized water |
|
|
district, the district or the authorized water district shall call |
|
|
an election for that purpose. |
|
|
SECTION 2. Section 53.171(a), Water Code, is amended to |
|
|
read as follows: |
|
|
(a) A district may issue bonds to secure indebtedness for |
|
|
any purpose authorized by this chapter, Chapter 49, or other |
|
|
applicable laws. |
|
|
SECTION 3. This Act takes effect September 1, 2007. |