By: Oliveira (Senate Sponsor - Lucio) H.B. No. 2207

(In the Senate - Received from the House April 11, 2011; April 26, 2011, read first time and referred to Committee on Intergovernmental Relations; May 20, 2011, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; May 20, 2011, sent to printer.)

COMMITTEE SUBSTITUTE FOR H.B. No. 2207 By: Nichols

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the board of trustees to set rates for certain municipal utility systems.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 552.141, Local Government Code, is amended to read as follows:

Sec. 552.141. APPLICABILITY OF SUBCHAPTER. This subchapter applies only to a home-rule municipality that owns or may own a water, wastewater, storm water, or drainage utility system, by ordinance or charter elects to have the management and control of two or more of those utility systems governed by this subchapter, and:

(1) has outstanding obligations payable solely from and secured by a lien on and pledge of the net revenue of one or more of those systems; or

(2) issues obligations that are payable solely from and secured by a lien on and pledge of the net revenue of one or more of those systems.

SECTION 2. Section 552.142(a), Local Government Code, is amended to read as follows:

(a) A municipality by ordinance may transfer management and control of two or more of its water, wastewater, storm water, or drainage systems to a board of trustees. A municipality by ordinance may grant the board authority to set rates and related terms for the systems.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.

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