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