1-1                                   AN ACT

 1-2     relating to the law applicable to interlocal contracts made by

 1-3     local governments.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 791.012, Government Code, is amended to

 1-6     read as follows:

 1-7           Sec. 791.012.  [LOCAL] LAW APPLICABLE TO CONTRACTING PARTIES.

 1-8     Local governments that are parties to an interlocal contract for

 1-9     the performance of a service may, in performing the service, apply

1-10     the [local] law applicable to [of] a party as agreed by the

1-11     parties.

1-12           SECTION 2.  The importance of this legislation and the

1-13     crowded condition of the calendars in both houses create an

1-14     emergency and an imperative public necessity that the

1-15     constitutional rule requiring bills to be read on three several

1-16     days in each house be suspended, and this rule is hereby suspended,

1-17     and that this Act take effect and be in force from and after its

1-18     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 501 was passed by the House on April

         3, 1997, by the following vote:  Yeas 146, Nays 0, 2 present, not

         voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 501 was passed by the Senate on May

         8, 1997, by the following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor