78R4387 MXM-D

By:  Thompson                                                     H.B. No. 2295



A BILL TO BE ENTITLED

AN ACT

relating to the level of municipal participation in contracts with 
developers for public improvements.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 212.072(b), Local Government Code, is 
amended to read as follows:
	(b)  The contract must establish the limit of participation 
by the municipality at a level not to exceed 70 [30] percent of the 
total contract price.  In addition, the contract may also allow 
participation by the municipality at a level not to exceed 100 
percent of the total cost for any oversizing of improvements 
required by the municipality, including but not limited to 
increased capacity of improvements to anticipate other future 
development in the area.  The municipality is liable only for the 
agreed payment of its share, which shall be determined in advance 
either as a lump sum or as a factor or percentage of the total actual 
cost as determined by municipal ordinance.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.