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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the board of trustees to set rates for |
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certain municipal utility systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 552.141, Local Government Code, is |
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amended to read as follows: |
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Sec. 552.141. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies only to a home-rule municipality that owns or may own a |
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water, wastewater, storm water, or drainage utility system, by |
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ordinance or charter elects to have the management and control of |
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two or more of those utility systems governed by this subchapter, |
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and: |
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(1) has outstanding obligations payable solely from |
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and secured by a lien on and pledge of the net revenue of one or more |
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of those systems; or |
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(2) issues obligations that are payable solely from |
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and secured by a lien on and pledge of the net revenue of one or more |
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of those systems. |
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SECTION 2. Section 552.142(a), Local Government Code, is |
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amended to read as follows: |
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(a) A municipality by ordinance may transfer management and |
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control of two or more of its water, wastewater, storm water, or |
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drainage systems to a board of trustees. The ordinance may grant the |
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board authority to set rates and related terms for the systems. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |