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.