By Wentworth S.B. No. 1277 76R8049 MI-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the uses of impact fees charged by municipal utility 1-3 districts. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 54, Water Code, is amended 1-6 by adding Section 54.243 to read as follows: 1-7 Sec. 54.243. DISPOSITION OF IMPACT FEES. A district that 1-8 charges a fee that is an impact fee as described in Section 1-9 395.001(4), Local Government Code, shall use the fees collected and 1-10 any interest accrued on the fees collected only for payment of 1-11 principal and interest on bonds, notes, or other obligations issued 1-12 by or on behalf of the district to finance the capital improvements 1-13 or facility expansions identified in the capital improvement plan 1-14 required by Section 395.012(d), Local Government Code. 1-15 SECTION 2. This Act takes effect September 1, 1999, and 1-16 applies only to impact fees collected or interest that accrues on 1-17 impact fees, regardless of when collected, on or after that date.