BILL ANALYSIS H.B. 2642 By: Counts (Montford) Water 04-28-95 Senate Committee Report (Unamended) BACKGROUND Current state law authorizes municipalities to contract for utilities without holding an election for approval, but some municipal charters provide that any contract of more than two years entered into by a municipality must be approved by a majority vote in an election. This has created a controversy as to which law prevails. The attorney general is refusing to approve the issuance of contract revenue bonds by entities such as the Canadian River Municipal Water Authority if they are based on a contract with a municipality that has a charter provision requiring an election, unless they are in compliance with that provision. PURPOSE As proposed, H.B. 2642 provides that the authority of each member municipality of the Canadian River Municipal Water Authority (district) or other city to enter into any contract with the district for the sale of water or other services, or for any purpose within the powers of the district is vested exclusively in the governing body of each member or other city. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 13(t), Article 8280-154, V.T.C.S., to provide that the authority of each member municipality (member) of the Canadian River Municipal Water Authority (district) or other city to enter into any contract with the district for the sale of water or other services, or for any purpose within the powers, rights, privileges, and functions (rights) of the district is vested exclusively in the governing body of each member or other city notwithstanding any provision of any home rule charter or any local ordinance of each member or other city, or of any provision of other law placing any restriction, limitation, or requirement on the authority of the governing body of any member or other city to enter into any such contract. Prohibits any provision of the home rule charter or any other ordinance of any member or other city, or any provision of any other law in conflict herewith from invalidating or impairing the enforceability and validity of any contract entered into by the district with any member or other city pursuant to the rights of the district. SECTION 2. Provides that if any part of this Act shall be invalid, such invalidity shall not affect the remaining portions of this Act. Provides that the intention of the legislature to pass each part of the Act irrespective of the fact that any other part may be declared invalid. SECTION 3. Emergency clause. Effective date: upon passage.