AN ACT

 1-1     relating to the authority of certain municipal utility districts to

 1-2     select the municipality in whose extraterritorial jurisdiction the

 1-3     district is located and to validating and confirming certain acts

 1-4     of municipal utility districts.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter B, Chapter 54, Water Code, is amended

 1-7     by adding Section 54.0163 to read as follows:

 1-8           Sec. 54.0163.  OPTION OF SELECTION OF EXTRATERRITORIAL

 1-9     JURISDICTION FOR CERTAIN DISTRICTS.  (a)  The board of a district

1-10     that is located in the extraterritorial jurisdictions of more than

1-11     one municipality by resolution may select the municipality that may

1-12     exercise authority within the district as a whole.  The resolution

1-13     must state the effective date.

1-14           (b)  As soon as practicable, the board shall file with each

1-15     affected municipality and in the real property records of each

1-16     county in which the district is located a certified copy of the

1-17     resolution.

1-18           (c)  On the effective date of the resolution, the district is

1-19     contained wholly in the extraterritorial jurisdiction of the

1-20     municipality selected by the resolution for all purposes.  No

1-21     action or approval by a municipality not selected is required.

1-22           (d)  A board that has made a selection of extraterritorial

1-23     jurisdiction under Section 54.0162 may confirm the selection by the

 2-1     adoption of a resolution under this section.  If the selection

 2-2     under Section 54.0162 is confirmed under this subsection, the

 2-3     selection is effective from the date of the original selection.

 2-4           (e)  This section does not apply to districts located in the

 2-5     extraterritorial jurisdiction of a municipality with territory in

 2-6     three or more counties, and no option of selection granted under

 2-7     this section or validation by this Act shall apply to

 2-8     municipalities so located.

 2-9           SECTION 2.  The legislature validates and confirms in all

2-10     respects all resolutions, orders, and other acts or attempted acts

2-11     of a board of directors of a municipal utility district adopted or

2-12     taken under Section 54.0162, Water Code, before the effective date

2-13     of this Act.

2-14           SECTION 3.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended,

2-19     and that this Act take effect and be in force from and after its

2-20     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1137 passed the Senate on

         April 18, 1997, by the following vote:  Yeas 29, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 1137 passed the House on

         May 26, 1997, by the following vote:  Yeas 143, Nays 0, one present

         not voting.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor