By:  Lindsay                                                      S.B. No. 748
	(In the Senate - Filed February 24, 2005; March 10, 2005, 
read first time and referred to Committee on Intergovernmental 
Relations; March 31, 2005, reported favorably by the following 
vote:  Yeas 5, Nays 0; March 31, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the use of funds received by certain special purpose 
districts under a contract with a municipality.
	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 the municipality, including a strategic partnership 
agreement authorized under Section 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.  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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