By:  Wentworth                                        S.B. No. 1277
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the uses of impact fees charged by municipal utility
 1-2     districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter D, Chapter 54, Water Code, is amended
 1-5     by adding Section 54.243 to read as follows:
 1-6           Sec. 54.243.  DISPOSITION OF IMPACT FEES.  A district that
 1-7     charges a fee that is an impact fee as described in Section
 1-8     395.001(4), Local Government Code, shall use the fees collected and
 1-9     any interest accrued on the fees collected only for payment of
1-10     principal and interest on bonds, notes, or other obligations issued
1-11     by or on behalf of the district to finance the capital improvements
1-12     or facility expansions identified in the capital improvement plan
1-13     required by Section 395.012(d), Local Government Code.
1-14           SECTION 2.  This Act takes effect September 1, 1999, and
1-15     applies only to impact fees collected or interest that accrues on
1-16     impact fees, regardless of when collected, on or after that date.