By: Cortez (Senate Sponsor - Menéndez) H.B. No. 1861
         (In the Senate - Received from the House May 13, 2021;
  May 14, 2021, read first time and referred to Committee on Local
  Government; May 22, 2021, reported favorably by the following
  vote:  Yeas 8, Nays 0; May 22, 2021, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the requirements for interlocal contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 791.011(d), Government Code, is amended
  to read as follows:
         (d)  An interlocal contract must:
               (1)  be authorized by the governing body of each party
  to the contract unless a party to the contract is a water utility
  owned by a municipality containing more than 75 percent of the
  population of a county with a population of 1.5 million or more or a
  municipally owned electric utility, in which event the governing
  body may establish procedures for entering into interlocal
  contracts that do not exceed $100,000 without requiring the
  approval of the governing body;
               (2)  state the purpose, terms, rights, and duties of
  the contracting parties; and
               (3)  specify that each party paying for the performance
  of governmental functions or services must make those payments from
  current revenues available to the paying party.
         SECTION 2.  The changes in law made by this Act apply only to
  an interlocal contract entered into on or after the effective date
  of this Act. An interlocal contract entered into before the
  effective date of this Act is governed by the law in effect on the
  date the contract was entered into, and the former law is continued
  in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2021.
 
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