80R14596 HLT-F
 
  By: Puente H.B. No. 3770
 
Substitute the following for H.B. No. 3770:
 
  By:  Puente C.S.H.B. No. 3770
 
A BILL TO BE ENTITLED
AN ACT
relating to the acquisition of road powers by a municipal utility
district.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 54.234, Water Code, is amended to read as
follows:
       Sec. 54.234.  ACQUIRING ROAD [UTILITY DISTRICT] POWERS.  (a)  
Any district or any petitioner seeking the creation of a district[,
which has the power to levy taxes,] may petition the commission to
acquire the power [powers granted to road utility districts
operating pursuant to Chapter 441, Transportation Code,] under the
authority of Article III, Section 52, Texas Constitution, to
design, acquire, construct, finance, issue bonds for, and convey to
this state, a county, or a municipality for operation and
maintenance, a road described by Subsection (b) or any improvement
in aid of the road.
       (b)  The road must meet the criteria for a thoroughfare,
arterial, or collector road of:
             (1)  a county in whose jurisdiction the proposed road
project is located; or
             (2)  a municipality in whose corporate limits or
extraterritorial jurisdiction the proposed road project is
located.
       (c)  As soon as practicable after such petition has been
filed with the commission, the commission shall issue an order
either approving or denying such petition.
       (d)  If the commission issues an order approving the
petition, the district may undertake a road project if:
             (1)  the municipality or county that will operate and
maintain the road has approved the plans and specifications of the
road project; or
             (2)  the Texas Transportation Commission has approved
the plans and specifications of the road project, if the state is to
operate and maintain the road.
       (e)  Except as provided by Subsection (d), a district is not
required to obtain approval from the Texas Transportation
Commission to acquire, construct, convey, or finance the road
project. [In the event of any conflict between the provisions of
the Water Code and the general laws of this state applicable to the
district and the provisions of Chapter 441, Transportation Code,
the provisions of the Water Code and the general laws of this state
applicable to the district shall prevail.]
       SECTION 2.  Section 54.234, Water Code, as amended by this
Act, applies to a municipal utility district that acquires road
powers before, on, or after the effective date of this Act.
       SECTION 3.  A bond election held before the effective date of
this Act by a municipal utility district to finance a road project
authorized by Section 54.234, Water Code, is validated.
       SECTION 4.  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, 2007.