Amend CSSB 89 by adding the following SECTION       and
renumbering the subsequent sections appropriately:
      SECTION     . Subchapter D, Chapter 43, Local Government
Code, is amended by adding Section 43.0712 to read as follows:
      "Section 43.0712. (a) If a municipality enacts an ordinance
to annex a special district and assumes control and operation of
utilities within the district, and the annexation is invalidated by
a final judgment of a court of competent jurisdiction, the
municipality is deemed, by enactment of its annexation ordinance,
to have acquired title to utilities owned by a developer within the
special district and is obligated to pay the developer all amounts
related to the utilities as provided in Sec. 43.0715 of this code.
      (b)  Upon resumption of the functions of the special
district:
            (1)  the municipality shall succeed to the contractual
rights of the developer to be reimbursed by the special district
for the utilities the municipality acquires from the developer; and
            (2)  the special district shall resume the use of the
utilities acquired and paid for by the municipality, and shall
thereafter issue bonds to acquire the utilities from the
municipality and reimburse the municipality for amounts the
municipality paid the developer. The issuance of bonds by the
special district and the payment to the municipality shall be
governed by the requirements of the Texas Natural Resources
Conservation Commission for the issuance of the bonds.
      (c)  This section takes effect September 1, 1999 and applies
to municipal annexation ordinances enacted before or after the
effective date of this section."