2005S0408-1  03/01/05


By:  Lindsay                                                      S.B. No. 878


A BILL TO BE ENTITLED

AN ACT

relating to a municipal utility district's use of money received 
under a contract with a municipality.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 54, Water Code, is amended 
by adding Section 54.2352 to read as follows:
	Sec. 54.2352.  USE OF MONEY RECEIVED UNDER CERTAIN 
CONTRACTS.  A district located in a county with a population of 3.3 
million or more and that receives money from a municipality under 
the terms of a contract with the municipality, including a 
strategic partnership agreement authorized by Section 43.0751, 
Local Government Code, may use the money for any purpose of the 
district, including the construction and maintenance of sound 
barriers, unless the contract requires the district to use the 
money for a specified purpose.
	SECTION 2.  The change in law made by this Act applies only 
to a contract between a municipality and a municipal utility 
district entered into on or after the effective date of this Act.  A 
contract entered into before the effective date of this Act is 
covered by the law in effect on the date the contract was entered 
into, and the former 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, 2005.