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AN ACT
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relating to the acquisition of road powers by a municipal utility  | 
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district. | 
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
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       SECTION 1.  Section 54.234, Water Code, is amended to read as  | 
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follows: | 
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       Sec. 54.234.  ACQUIRING ROAD [UTILITY DISTRICT] POWERS.  (a)   | 
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Any district or any petitioner seeking the creation of a district[, 
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which has the power to levy taxes,] may petition the commission to  | 
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acquire the power [powers granted to road utility districts 
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operating pursuant to Chapter 441, Transportation Code,] under the  | 
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authority of Article III, Section 52, Texas Constitution, to  | 
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design, acquire, construct, finance, issue bonds for, and convey to  | 
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this state, a county, or a municipality for operation and  | 
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maintenance, a road described by Subsection (b) or any improvement  | 
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in aid of the road. | 
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       (b)  The road must meet the criteria for a thoroughfare,  | 
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arterial, or collector road of: | 
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             (1)  a county in whose jurisdiction the proposed road  | 
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project is located;  or | 
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             (2)  a municipality in whose corporate limits or  | 
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extraterritorial jurisdiction the proposed road project is  | 
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located. | 
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       (c)  As soon as practicable after such petition has been  | 
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filed with the commission, the commission shall issue an order  | 
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either approving or denying such petition. | 
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       (d)  If the commission issues an order approving the  | 
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petition, the district may undertake a road project if: | 
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             (1)  the municipality or county that will operate and  | 
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maintain the road has approved the plans and specifications of the  | 
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road project; or | 
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             (2)  the Texas Transportation Commission has approved  | 
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the plans and specifications of the road project, if the state is to  | 
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operate and maintain the road. | 
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       (e)  Except as provided by Subsection (d), a district is not  | 
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required to obtain approval from the Texas Transportation  | 
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Commission to acquire, construct, convey, or finance the road  | 
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project. [In the event of any conflict between the provisions of 
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the Water Code and the general laws of this state applicable to the 
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district and the provisions of Chapter 441, Transportation Code, 
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the provisions of the Water Code and the general laws of this state 
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applicable to the district shall prevail.] | 
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       SECTION 2.  Section 54.234, Water Code, as amended by this  | 
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Act, applies to a municipal utility district that acquires road  | 
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powers before, on, or after the effective date of this Act. | 
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       SECTION 3.  A bond election held before the effective date of  | 
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this Act by a municipal utility district to finance a road project  | 
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authorized by Section 54.234, Water Code, is validated. | 
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       SECTION 4.  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, 2007. | 
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______________________________ | 
______________________________ | 
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   President of the Senate | 
Speaker of the House      | 
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       I certify that H.B. No. 3770 was passed by the House on May 9,  | 
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2007, by the following vote:  Yeas 143, Nays 1, 2 present, not  | 
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voting. | 
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______________________________ | 
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Chief Clerk of the House    | 
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       I certify that H.B. No. 3770 was passed by the Senate on May  | 
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23, 2007, by the following vote:  Yeas 31, Nays 0. | 
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______________________________ | 
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Secretary of the Senate     | 
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APPROVED:  _____________________ | 
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                   Date           | 
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          _____________________ | 
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                 Governor        |