1-1     By:  Williams (Senate Sponsor - Bernsen)              H.B. No. 2045
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Natural
 1-4     Resources; May 11, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the disposition of impact fees by municipal utility
 1-9     districts.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Section 54.243, Water Code, is amended to read as
1-12     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:
1-17                 (1)  payment of principal and interest on bonds, notes,
1-18     or other obligations issued by or on behalf of the district to
1-19     finance the capital improvements or facility expansions identified
1-20     in the capital improvement plan required by Section 395.012(d),
1-21     Local Government Code; or
1-22                 (2)  cash payment of the costs of capital improvements
1-23     or facility expansions identified in the capital improvement plan
1-24     required by Section 395.012(d), Local Government Code.
1-25           SECTION 2.  (a)  This Act takes effect September 1, 2001.
1-26           (b)  The change in law made by Section 54.243, Water Code, as
1-27     amended by this Act, applies to impact fees and interest on the
1-28     fees regardless of the date on which the fees were collected or the
1-29     interest accrued.
1-30                                  * * * * *