84R7621 SCL-F

By: Workman H.B. No. 2672

A BILL TO BE ENTITLED

AN ACT

relating to the powers of a public utility agency; authorizing fees and charges; granting the power of eminent domain.

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

SECTION 1. Section 572.058(b), Local Government Code, is amended to read as follows:

(b) A public utility agency may:

(1) perform any act necessary to the full exercise of the agency's powers;

(2) enter into a contract, lease, or agreement with or accept a grant or loan from a:

(A) department or agency of the United States;

(B) department, agency, or municipality or other political subdivision of this state; or

(C) public or private corporation or person;

(3) sell, lease, convey, or otherwise dispose of any right, interest, or property the agency considers to be unnecessary for the efficient operation or maintenance of its facilities; [and]

(4) acquire, for the use and benefit of the agency, land, easements, or other property by purchase or by exercising the power of eminent domain according to Section 572.0585;

(5) provide potable and nonpotable water service, sewer service, or both to the ultimate consumer for compensation;

(6) establish, charge, and collect reasonable and nondiscriminatory tolls, fees, user fees, rates, and other charges for the sale or use of water, water service, water connections, wastewater service, wastewater connections, or other services sold, furnished, or supplied by the agency to retail, wholesale, industrial, and other users;

(7) assess and collect an impact fee under Chapter 395 against new development in the area served by the agency;

(8) adopt and enforce a water quality protection rule, applicable to development served by the agency but located outside the jurisdiction of a municipality, for the protection, preservation, and restoration of the purity or sanitary condition of water within this state, including areas served by the agency;

(9) enter into a contract with a water district or a water supply corporation to receive a facility or conveyance from the district or corporation that the district or corporation received in a contract under Section 49.226(b), 51.150, or 54.2351, Water Code, or Section 552.014 of this code; and

(10) adopt rules to govern the operation of the agency and its employees, facilities, and service.

SECTION 2. Subchapter C, Chapter 572, Local Government Code, is amended by adding Section 572.0585 to read as follows:

Sec. 572.0585. USE OF EMINENT DOMAIN. (a) A public utility agency may, with a four-fifths vote of the agency's board of directors, exercise the power of eminent domain to acquire land, easements, or other property within the area served by the agency for water or sanitary sewer purposes or for any other of its projects or purposes, and may elect to condemn either the fee simple title or a lesser property interest.

(b) A public utility agency must exercise the power of eminent domain in the manner provided in Chapter 21, Property Code, except that the agency is not required to give bond for appeal or bond for costs in any condemnation suit or other suit to which it is a party and is not required to deposit more than the amount of any award in any suit.

(c) A public utility agency may not use the power of eminent domain to condemn land for the purpose of acquiring rights to groundwater or for the purpose of acquiring water or water rights.

SECTION 3. Section 572.059(a), Local Government Code, is amended to read as follows:

(a) A public utility agency may award a contract for construction of an improvement that involves the expenditure of more than $75,000 [$20,000] only on the basis of competitive bids.

SECTION 4. Section 572.061(a), Local Government Code, is amended to read as follows:

(a) A [In contracting with a public or private entity for wastewater collection, transmission, treatment, or disposal services or for water conservation, storage, transportation, treatment, or distribution, a] public utility agency must charge tolls, fees, user fees, rates, and other charges sufficient to produce revenue adequate to:

(1) pay all expenses of operation and maintenance;

(2) pay when due the principal of and interest on obligations issued under this subchapter;

(3) pay the principal of and interest on any legal debt of the agency;

(4) pay when due all sinking and reserve fund payments; [and]

(5) fulfill any agreements made with the holders of any obligations; and

(6) if a depreciation and emergency fund is established under Subsection (b), provide a sufficient amount for that fund.

SECTION 5. Subchapter C, Chapter 572, Local Government Code, is amended by adding Section 572.065 to read as follows:

Sec. 572.065. PARTICIPATING PUBLIC ENTITY CONVEYANCE TO PUBLIC UTILITY AGENCY. (a) In this section, "utility system" has the meaning assigned by Section 1502.001, Government Code.

(b) A participating public entity may convey a utility system, facility, or other asset or its interest in a utility system, facility, or other asset to a public utility agency without holding an election to approve the conveyance.

(c) Chapter 1502, Government Code, does not apply to the conveyance or sale of a utility system or any related works, improvements, facilities, equipment, or appliances or an interest in a utility system, facility, or other asset by a participating public entity to a public utility agency.

SECTION 6. 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, 2015.