1-1     By:  Wentworth                                        S.B. No. 1277
 1-2           (In the Senate - Filed March 11, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 22, 1999, reported favorably by the following
 1-5     vote:  Yeas 5, Nays 0; April 22, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the uses of impact fees charged by municipal utility
 1-9     districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter D, Chapter 54, Water Code, is amended
1-12     by adding Section 54.243 to read as follows:
1-13           Sec. 54.243.  DISPOSITION OF IMPACT FEES.  A district that
1-14     charges a fee that is an impact fee as described in Section
1-15     395.001(4), Local Government Code, shall use the fees collected and
1-16     any interest accrued on the fees collected only for payment of
1-17     principal and interest on bonds, notes, or other obligations issued
1-18     by or on behalf of the district to finance the capital improvements
1-19     or facility expansions identified in the capital improvement plan
1-20     required by Section 395.012(d), Local Government Code.
1-21           SECTION 2.  This Act takes effect September 1, 1999, and
1-22     applies only to impact fees collected or interest that accrues on
1-23     impact fees, regardless of when collected, on or after that date.
1-24                                  * * * * *