Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Moffat                                       H.B. No. 2543

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the authority of certain municipalities to contract

 1-3     with certain municipal utility districts.

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

 1-5           SECTION 1.  Chapter 49, Subchapter H, Water Code, is amended

 1-6     by adding Section 49.2131 to read as follows:

 1-7           Sec. 49.2131.  (a)  A general-law municipality with a

 1-8     population of less than 1,000 may enter into a contract with a

 1-9     municipal utility district, at least 50 percent of whose land is

1-10     located within the corporate limits or extraterritorial

1-11     jurisdiction of the municipality, for the purposes of:

1-12                 (1)  determining the subdivision, use and development

1-13     of land within the boundaries of the district;

1-14                 (2)  determining, and providing for the construction,

1-15     installation and financing of, the infrastructure and other

1-16     improvements necessary for the district to provide the services or

1-17     perform the functions or exercise the rights and powers that the

1-18     district is authorized to provide, perform, or exercise (whether

1-19     such services, functions, rights and powers benefit land inside or

1-20     outside the district); and

1-21                 (3)  providing any other services, performing any other

1-22     functions, or exercising any other powers or rights that the

1-23     district has the authority to provide, perform or exercise (whether

1-24     such services, functions, powers or rights benefit land inside or

 2-1     outside the district.

 2-2           (b)  A contract between a general-law municipality and a

 2-3     municipal utility district described in (a) above shall be for such

 2-4     duration, and shall contain such terms and conditions, as may be

 2-5     considered desirable by the governing body of the municipality and

 2-6     the board of directors of the municipal utility district, shall

 2-7     require no other approval or ratification, and shall be enforceable

 2-8     by any party to the contract or any landowner in the district whose

 2-9     property is affected by the contract.

2-10           SECTION 2.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended.