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.