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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements for interlocal contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 791.011(d), Government Code, is amended |
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to read as follows: |
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(d) An interlocal contract must: |
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(1) be authorized by the governing body of each party |
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to the contract unless a party to the contract is a water utility |
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owned by a municipality containing more than 75 percent of the |
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population of a county with a population of 1.5 million or more or a |
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municipally owned electric utility, in which event the governing |
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body may establish procedures for entering into interlocal |
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contracts that do not exceed $100,000 without requiring the |
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approval of the governing body; |
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(2) state the purpose, terms, rights, and duties of |
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the contracting parties; and |
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(3) specify that each party paying for the performance |
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of governmental functions or services must make those payments from |
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current revenues available to the paying party. |
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SECTION 2. The changes in law made by this Act apply only to |
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an interlocal contract entered into on or after the effective date |
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of this Act. An interlocal contract entered into before the |
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effective date of this Act is governed by the law in effect on the |
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date the contract was entered into, and the former law is continued |
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in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2021. |