By:  Thompson                                                     H.B. No. 1606



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, Local Government Code, is 
amended by amending Subsection (b) and adding Subsections (c) and 
(d) to read as follows:
	(b)  The contract:                                                      
		(1)  must establish the limit of participation by the 
municipality at a level not to exceed 30 percent of the total 
contract price, if the municipality has a population of less than 
1.8 million; or
		(2)  may allow participation by a municipality at a 
level not to exceed 70 percent of the total contract price, if the 
municipality has a population of 1.8 million or more.
	(c)  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.
	(d)  The municipality is liable only for the agreed payment 
of its share of the contract, 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, 2005.