By Lewis of Orange                              H.B. No. 1934

      75R6851 DRH-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to contracts between municipal utility districts and

 1-3     municipalities.

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

 1-5           SECTION 1.  Subchapter D, Chapter 43, Local Government Code,

 1-6     is amended by adding Section 43.083 to read as follows:

 1-7           Sec. 43.083.  CONTRACTS BETWEEN A MUNICIPAL UTILITY DISTRICT

 1-8     AND A MUNICIPALITY.  (a)  A municipal utility district and a

 1-9     municipality may enter into a contract:

1-10                 (1)  to provide for payments to be made to the

1-11     municipality for purposes that the governing bodies of the district

1-12     and the municipality determine will benefit both the district and

1-13     the municipality; or

1-14                 (2)  under the terms and with considerations that the

1-15     district and the municipality agree are reasonable.

1-16           (b)  A contract under this section may include a provision

1-17     that allows the municipal utility district to remain in existence

1-18     and not be subject to annexation by the municipality for a set

1-19     term.

1-20           (c)  A contract under this section may be for a term of not

1-21     more than 15 years.  The parties may agree to renew or extend the

1-22     contract.

1-23           (d)  A municipal utility district may use any funds available

1-24     to make a payment to a municipality under a contract authorized by

 2-1     this section.

 2-2           SECTION 2.  This Act takes effect September 1, 1997.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended.