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                                                                  S.B. No. 898




AN ACT

relating to the applicability of provisions concerning bond 
approval by the Texas Commission on Environmental Quality to 
certain water districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (h), Section 49.181, Water Code, is 
amended to read as follows:
	(h)  This section does not apply to a district if:                             
		(1)  the district's boundaries include one entire 
county;                   
		(2)  the district was created by a special Act of the 
legislature and:      
			(A)  the district is located entirely within one 
county;                   
			(B)  is entirely within one or more home-rule 
municipalities;       
			(C)  the total taxable value of the real property 
and improvements to the real property zoned by one or more home-rule 
municipalities for residential purposes and located within the 
district does not exceed 25 percent of the total taxable value of 
all taxable property in the district, as shown by the most recent 
certified appraisal tax roll prepared by the appraisal district for 
the county; and
			(D)  the district was not required by law to 
obtain commission approval of its bonds before the effective date 
of this section;
		(3)  the district is a special water authority; [or]         
		(4)  the district is governed by a board of directors 
appointed in whole or in part by the governor, a state agency, or 
the governing body or chief elected official of a municipality or 
county and does not provide, or propose to provide, water, sewer, 
drainage, reclamation, or flood control services to residential 
retail or commercial customers as its principal function; or
		(5)  the district on September 1, 2003:                                
			(A)  is a municipal utility district that includes 
territory in only two counties;
			(B)  has outstanding long-term indebtedness that 
is rated BBB or better by a nationally recognized rating agency for 
municipal securities; and
			(C)  has at least 5,000 active water connections.                     
	SECTION 2.  The change in law made by this Act does not apply 
to bonds with regard to which an application and report were 
submitted to the Texas Natural Resource Conservation Commission or 
the Texas Commission on Environmental Quality under Subsection (b), 
Section 49.181, Water Code, before the effective date of this Act.  
Those bonds are governed by the law as it existed immediately before 
the effective date of this Act, and that law is continued in effect 
for that purpose.
	SECTION 3.  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.





______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 898 passed the Senate on 
April 25, 2003, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 898 passed the House on 
May 16, 2003, by the following vote:  Yeas 142, Nays 1, two 
present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor