By Lewis of Orange                                    H.B. No. 2994
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the approval of certain contracts of special districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 49.108(e), Water Code, is amended to read
 1-5     as follows:
 1-6           (e)  A district that is required under Section 49.181 to
 1-7     obtain approval by the commission of the district's issuance of
 1-8     bonds must obtain approval by the executive director before the
 1-9     district enters into an obligation under this section to collect
1-10     tax for debt that exceeds three years.  This subsection does not
1-11     apply to contract taxes that are levied to pay for a district's
1-12     share of bonds that have been issued by another district and
1-13     approved by the commission or bonds issued by a municipality.
1-14           SECTION 2.  This Act takes effect immediately if it receives
1-15     a vote of two-thirds of all the members elected to each house, as
1-16     provided by Section 39, Article III, Texas Constitution.  If this
1-17     Act does not receive the vote necessary for immediate effect, this
1-18     Act takes effect September 1, 2001.