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By:  Callegari (Senate Sponsor - Lindsay)                         H.B. No. 2241
	(In the Senate - Received from the House May 4, 2005; 
May 5, 2005, read first time and referred to Committee on 
Intergovernmental Relations; May 20, 2005, reported adversely, 
with favorable Committee Substitute by the following vote:  Yeas 3, 
Nays 2; May 20, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2241                                   By:  Wentworth


A BILL TO BE ENTITLED

AN ACT


relating to the authority of certain municipalities to require a 
contract between a municipal utility district and the municipality 
before the district issues obligations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 54.016(f), Water Code, is amended to 
read as follows:    
	(f)  A city located in a county with a population of less than 
1 million in which a municipality with a population of more than 
650,000 is predominately located may provide in its written consent 
for the inclusion of land in a district that a contract ("allocation 
agreement") between the district and the city be entered into prior 
to the first issue of bonds, notes, warrants, or other obligations 
of the district.  The allocation agreement shall contain the 
following provisions:
		(1)  a method by which the district shall continue to 
exist following the annexation of all territory within the district 
by the city, if the district is initially located outside the 
corporate limits of the city;
		(2)  an allocation of the taxes or revenues of the 
district or the city which will assure that, following the date of 
the inclusion of all the district's territory within the corporate 
limits of the city, the total annual ad valorem taxes collected by 
the city and the district from taxable property within the district 
does not exceed an amount greater than the city's ad valorem tax 
upon such property;
		(3)  an allocation of governmental services to be 
provided by the city or the district following the date of the 
inclusion of all of the district's territory within the corporate 
limits of the city;
		(4)  such other terms and conditions as may be deemed 
appropriate by the city.
	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.



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