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. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1277 passed the Senate on May 6, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1277 passed the House on May 22, 1999, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor