By Lewis of Orange                                    H.B. No. 2994
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of districts to enter into contracts to
 1-3     pay taxes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 49.108(e), Water Code, is amended to read
 1-6     as follows:
 1-7           (e)  A district that is required under Section 49.181 to
 1-8     obtain approval by the commission of the district's issuance of
 1-9     bonds must obtain approval by the executive director before the
1-10     district enters into an obligation under this section to collect
1-11     tax for debt that exceeds three years.  This subsection does not
1-12     apply to contract taxes that are levied to pay for a district's
1-13     share of bonds that have been issued by another district and
1-14     approved by the commission[.] or bonds issued by a municipality.
1-15           SECTION 2.  This Act takes effect immediately if it receives
1-16     a vote of two-thirds of all the members elected to each house, as
1-17     provided by Section 39, Article III, Texas Constitution.  If this
1-18     Act does not receive the vote necessary for immediate effect, this
1-19     Act takes effect September 1, 2001.