79R7003 T

By:  Lindsay                                                      S.B. No. 748



A BILL TO BE ENTITLED

AN ACT

relating to the use of funds received under a contract with a 
municipality by a conservation and reclamation district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 49, Water Code, is amended 
by adding Section 49.073 to read as follows:
	Sec. 49.073.  USE OF CERTAIN CONTRACT FUNDS.  A district 
receiving funds from a municipality pursuant to the provisions of a 
contract with a municipality, including a strategic partnership 
agreement authorized under Sec. 43.0751, Local Government Code, may 
use such funds for any lawful purpose of either the district or the 
applicable municipality, unless required otherwise by the 
applicable contract.  The purposes of the district shall be 
construed to include the municipal purposes for which such funds 
are used by the district hereunder.
	SECTION 2.  EFFECTIVE DATE.  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.