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A BILL TO BE ENTITLED
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AN ACT
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relating to municipal public securities to provide for or loan or |
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grant public money for the provision of water conservation |
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infrastructure; providing a criminal penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 1502, Government Code, is |
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amended to read as follows: |
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CHAPTER 1502. PUBLIC SECURITIES FOR MUNICIPAL UTILITIES, PARKS, |
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[OR] POOLS, OR WATER CONSERVATION INFRASTRUCTURE |
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SECTION 2. Section 1502.001, Government Code, is amended by |
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adding Subdivision (4) to read as follows: |
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(4) "Water conservation infrastructure" means |
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property, interests in property, buildings, structures, |
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activities, services, operations, or other facilities owned by a |
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municipality or any person contracting with a municipality that is |
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found by the governing body of the municipality to conserve, |
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preserve, or treat water, wastewater, stormwater, or other water |
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resources of the municipality. |
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SECTION 3. The heading to Section 1502.002, Government |
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Code, is amended to read as follows: |
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Sec. 1502.002. GENERAL AUTHORITY FOR UTILITY SYSTEMS, |
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PARKS, [AND] POOLS, AND WATER CONSERVATION INFRASTRUCTURE. |
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SECTION 4. Section 1502.002(a), Government Code, is amended |
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to read as follows: |
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(a) A municipality may acquire, purchase, construct, |
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improve, enlarge, equip, operate, or maintain any property, |
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including channels or bodies of water known as resacas, interests |
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in property, buildings, structures, activities, services, |
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operations, or other facilities, with respect to: |
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(1) a utility system; |
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(2) a park; [or] |
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(3) a swimming pool; or |
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(4) water conservation infrastructure. |
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SECTION 5. Subchapter A, Chapter 1502, Government Code, is |
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amended by adding Sections 1502.005 and 1502.006 to read as |
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follows: |
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Sec. 1502.005. DECLARATION OF PUBLIC PURPOSE. Under |
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Section 52-a, Article III, Texas Constitution, a municipality may |
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undertake to provide or provide funding for water conservation |
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infrastructure in accordance with this chapter that the |
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municipality determines to be: |
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(1) in furtherance of the development and |
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diversification of the economy of the municipality; |
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(2) in furtherance of the conservation, preservation, |
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or treatment of water resources of the municipality; and |
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(3) beneficial to the operation of its utility system. |
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Sec. 1502.006. ADDITIONAL POWERS RELATED TO PROVISION OF |
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WATER CONSERVATION INFRASTRUCTURE. A municipality may exercise any |
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power granted to the municipality by Chapter 380, Local Government |
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Code, in providing or providing funding for water conservation |
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infrastructure under this chapter. |
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SECTION 6. The heading to Subchapter B, Chapter 1502, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER B. PUBLIC SECURITIES FOR UTILITY SYSTEMS, PARKS, [OR] |
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POOLS, OR WATER CONSERVATION INFRASTRUCTURE |
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SECTION 7. Section 1502.051(a), Government Code, is amended |
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to read as follows: |
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(a) The governing body of a municipality may provide funds |
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to acquire, purchase, construct, improve, renovate, enlarge, or |
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equip property, buildings, structures, facilities, or related |
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infrastructure for: |
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(1) a utility system; |
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(2) a park; [or] |
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(3) a swimming pool; or |
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(4) water conservation infrastructure. |
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SECTION 8. Section 1502.052(a), Government Code, is amended |
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to read as follows: |
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(a) The governing body of a municipality may pledge to the |
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payment of any public securities issued or any obligations incurred |
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under Section 1502.051(c) all or any part of the revenue of: |
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(1) a utility system; |
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(2) a park; [or] |
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(3) a swimming pool; or |
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(4) water conservation infrastructure. |
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SECTION 9. Section 1502.053, Government Code, is amended to |
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read as follows: |
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Sec. 1502.053. GRANT OF FRANCHISE. As additional security |
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for public securities issued or obligations incurred under this |
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chapter, the municipality by the terms of the encumbrance may grant |
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a purchaser under sale or foreclosure a franchise to operate the |
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encumbered utility system, park, [or] pool, or water conservation |
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infrastructure for a term not to exceed 20 years from the date of |
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purchase, subject to all laws regulating the operation of the |
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utility system, park, [or] pool, or water conservation |
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infrastructure in force at the time of the sale or foreclosure. |
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SECTION 10. Section 1502.054(a), Government Code, is |
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amended to read as follows: |
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(a) A public security issued or an obligation incurred under |
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this chapter: |
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(1) is not a debt of the municipality; |
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(2) may be a charge only on the encumbered utility |
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system, park, [or] pool, or water conservation infrastructure; and |
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(3) may not be included in determining the |
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municipality's power to issue public securities for any purpose |
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authorized by law. |
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SECTION 11. Section 1502.055(a), Government Code, is |
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amended to read as follows: |
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(a) Unless authorized by a majority vote of the qualified |
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voters of the municipality, a municipality may not sell a utility |
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system, park, [or] pool, or municipally owned water conservation |
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infrastructure. |
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SECTION 12. Section 1502.056(a), Government Code, is |
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amended to read as follows: |
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(a) If the revenue of a utility system, park, [or] swimming |
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pool, or water conservation infrastructure secures the payment of |
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public securities issued or obligations incurred under this |
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chapter, each expense of operation and maintenance, including all |
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salaries, labor, materials, interest, repairs and extensions |
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necessary to provide efficient service, and each proper item of |
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expense, is a first lien against that revenue. For a municipality |
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with a population of more than one million but less than two |
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million, the first lien against the revenue of a municipally owned |
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utility system that secures the payment of public securities issued |
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or obligations incurred under this chapter also applies to funding, |
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as a necessary operations expense, for a bill payment assistance |
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program for utility system customers who: |
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(1) have been threatened with disconnection from |
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service for nonpayment of bills and who have been determined by the |
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municipality to be low-income customers; or |
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(2) are military veterans who have significantly |
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decreased abilities to regulate their bodies' core temperatures |
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because of severe burns received in combat. |
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SECTION 13. Sections 1502.058(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) Except as provided by Subsection (b) or (c), by Section |
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1502.059, or by Section 271.052, Local Government Code, a |
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municipality may not use the revenue of a utility system, park, [or] |
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swimming pool, or water conservation infrastructure to pay any |
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other debt, expense, or obligation of the municipality until the |
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debt secured by the revenue is finally paid. |
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(c) This section does not apply to a payment made from |
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surplus revenue of a utility system, park, [or] swimming pool, or |
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water conservation infrastructure, as provided by the proceedings |
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authorizing the issuance of public securities under this chapter. |
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SECTION 14. Section 1502.060(a), Government Code, is |
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amended to read as follows: |
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(a) To the extent provided by the proceedings authorizing |
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the issuance of the public securities issued under this chapter, a |
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municipality may: |
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(1) use proceeds from the sale of public securities |
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issued to provide funds for a utility system under this chapter for |
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any purpose authorized by Section 1502.051(a)(1) or (b); |
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(2) use proceeds from the sale of public securities |
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issued to provide funds for a park under this chapter for any |
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purpose authorized by Section 1502.051(a)(2); [or] |
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(3) use proceeds from the sale of public securities to |
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provide funds for a swimming pool under this chapter for any purpose |
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authorized by Section 1502.051(a)(3); or |
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(4) use proceeds from the sale of public securities |
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issued to provide funds for water conservation infrastructure under |
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this chapter for any purpose authorized by Section 1502.006 or |
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1502.051(a)(4). |
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SECTION 15. Section 1502.066, Government Code, is amended |
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to read as follows: |
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Sec. 1502.066. RECORDS. The mayor of the municipality |
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shall establish and maintain a complete system of records for a |
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utility system, park, [or] swimming pool, or water conservation |
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infrastructure the revenue of which is encumbered under this |
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chapter that: |
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(1) shows any free service provided and the value of |
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the free service; and |
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(2) shows separately the amounts spent and the amounts |
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set aside for operation, salaries, labor, materials, repairs, |
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maintenance, depreciation, replacements, extensions, interest, and |
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the creation of a sinking fund to pay the public securities and |
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debt. |
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SECTION 16. Section 1502.068, Government Code, is amended |
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to read as follows: |
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Sec. 1502.068. ANNUAL REPORT. (a) Annually, on the date |
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determined by the governing body of the municipality, the |
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superintendent or manager of a utility system, park, [or] pool, or |
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water conservation infrastructure or another person designated by |
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the governing body shall file with the mayor and governing body of |
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the municipality a detailed report of the operation of the system, |
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park, [or] pool, or water conservation infrastructure for the |
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preceding 12-month period specified by the governing body. |
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(b) The report must show the total amount of money collected |
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and the balance due, and the total disbursements made and the |
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amounts remaining unpaid, resulting from the operation of the |
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utility system, park, [or] pool, or water conservation |
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infrastructure during that year. |
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(c) If the municipality provides loans or grants of public |
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money to persons to acquire, purchase, construct, improve, |
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renovate, enlarge, or equip water conservation infrastructure, the |
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report must contain: |
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(1) the types of water conservation infrastructure |
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projects funded; |
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(2) the controls imposed by the municipality on the |
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persons receiving loans or grants to ensure that the public |
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purposes described by Section 1502.005 are being carried out; and |
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(3) an analysis of the results of how the funded water |
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conservation infrastructure projects achieved the intended results |
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in furtherance of the public purposes described by Section |
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1502.005. |
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SECTION 17. Section 1502.069(a), Government Code, is |
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amended to read as follows: |
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(a) A mayor commits an offense if the mayor fails to: |
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(1) establish the system of records required by |
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Section 1502.066 before the 91st day after the date the utility |
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system, park, [or] pool, or water conservation infrastructure is |
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completed; or |
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(2) maintain the system of records required by Section |
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1502.066. |
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SECTION 18. Section 1502.074, Government Code, is amended |
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to read as follows: |
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Sec. 1502.074. CIVIL ENFORCEMENT. A person who resides in a |
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municipality and is a taxpayer or holder of a public security issued |
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or an obligation incurred under this chapter and secured by the |
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revenue of the municipality's utility system, park, [or] swimming |
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pool, or water conservation infrastructure as provided by this |
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chapter is entitled to enforce this chapter by appropriate civil |
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action in a district court in the county in which the municipality |
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is located. |
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SECTION 19. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2015. |