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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of wholesale water and wastewater service |
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to certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 13, Water Code, is amended |
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by adding Section 13.088 to read as follows: |
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Sec. 13.088. MUNICIPAL WHOLESALE SERVICE IN CERTAIN |
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COUNTIES. (a) This section applies only to: |
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(1) a home-rule municipality primarily located in a |
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county with a population of more than one million; and |
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(2) a general-law municipality with a population of |
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less than 301 located in a county with a population of more than |
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150,000. |
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(b) A municipally owned utility of a home-rule municipality |
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shall provide wholesale water and wastewater service to a |
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general-law municipality, in the corporate boundaries or the |
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extraterritorial jurisdiction of the general-law municipality, on |
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the request of the general-law municipality, at the level of |
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service requested by the general-law municipality, if: |
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(1) the extraterritorial jurisdiction of the |
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home-rule municipality borders the extraterritorial jurisdiction |
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of the general-law municipality; |
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(2) the general-law municipality possesses a |
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certificate of public convenience and necessity; |
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(3) a regulated aquifer is the sole water supply for |
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the general-law municipality at the time the request is made and |
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while the service is provided; |
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(4) a groundwater conservation district with |
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jurisdiction over the aquifer has determined that the aquifer has |
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limited capacity and experiences frequent droughts; and |
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(5) at least 50 percent of the territory of the |
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general-law municipality, including territory in the |
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municipality's corporate boundaries and extraterritorial |
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jurisdiction, is located in a recharge zone of the aquifer |
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described by Subdivision (3) and the groundwater conservation |
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district described by Subdivision (4) has determined that the |
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recharge zone is environmentally sensitive. |
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(c) A general-law municipality that makes a request and |
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receives wholesale water and wastewater service under this section |
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is responsible for: |
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(1) paying the general-law municipality's pro rata |
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share of all reasonable design, construction, and related costs and |
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fees associated with constructing new facilities or extending, |
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improving, or expanding existing facilities required for providing |
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the service, not including costs for oversizing the facilities |
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beyond the needs of the general-law municipality; |
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(2) all costs associated with the design and |
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construction of facilities required for providing the service |
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located in the corporate boundaries or extraterritorial |
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jurisdiction of the general-law municipality; and |
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(3) design, construction, and related activities for |
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facilities required for providing the service that are to be |
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located in the home-rule municipality's corporate boundaries or |
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extraterritorial jurisdiction, in accordance with the design |
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criteria, standards, specifications, and procedures of the |
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municipally owned utility. |
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(d) A home-rule municipality that provides wholesale water |
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and wastewater service through its municipally owned utility under |
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this section may not own, operate, or maintain facilities used to |
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provide the service located in the general-law municipality that |
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receives the service. |
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(e) A general-law municipality that makes a request shall |
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enter into a wholesale water and wastewater service agreement with |
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the municipally owned utility under the utility's standard terms |
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and conditions applicable for wholesale water and wastewater |
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service. The wholesale service agreement must be executed: |
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(1) before the initiation of preliminary engineering, |
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design, and construction, extensions, improvements, or expansions |
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of infrastructure necessary for wholesale services; and |
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(2) not later than the 180th day after the date the |
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request is submitted. |
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(f) After execution of the wholesale service agreement, the |
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home-rule municipality or the municipally owned utility may not |
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contest an application related to water or wastewater submitted to |
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the commission or the utility commission by the general-law |
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municipality. |
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(g) A municipally owned utility that receives a request |
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under this section: |
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(1) may request that the utility commission determine |
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whether the general-law municipality meets the requirements of |
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Subsection (b); |
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(2) may not recover through the municipally owned |
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utility's wholesale rates for the general-law municipality design, |
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construction, and related costs and fees associated with |
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constructing new facilities or extending, improving, or expanding |
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existing facilities required for the service that have been paid by |
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the general-law municipality and conveyed to the home-rule |
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municipality for ownership, operation, and maintenance; and |
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(3) may recover through the municipally owned |
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utility's wholesale rates for the general-law municipality any |
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costs related to the maintenance of infrastructure described in |
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Subdivision (2), in addition to the utility's other costs of |
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service as approved by the home-rule municipality. |
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SECTION 2. 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, 2017. |