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  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.