By Williams                                           H.B. No. 2045
         77R2732 MI-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the disposition of impact fees by municipal utility
 1-3     districts.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 54.243, Water Code, is amended to read as
 1-6     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:
1-11                 (1)  payment of principal and interest on bonds, notes,
1-12     or other obligations issued by or on behalf of the district to
1-13     finance the capital improvements or facility expansions identified
1-14     in the capital improvement plan required by Section 395.012(d),
1-15     Local Government Code; or
1-16                 (2)  cash payment of the costs of capital improvements
1-17     or facility expansions identified in the capital improvement plan
1-18     required by Section 395.012(d), Local Government Code.
1-19           SECTION 2.  (a)  This Act takes effect September 1, 2001.
1-20           (b)  The change in law made by Section 54.243, Water Code, as
1-21     amended by this Act, applies to impact fees and interest on the
1-22     fees regardless of the date on which the fees were collected or the
1-23     interest accrued.