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1 | 1 | 86R26732 BRG-D | |
2 | 2 | By: Lopez H.B. No. 4755 | |
3 | 3 | ||
4 | 4 | ||
5 | 5 | A BILL TO BE ENTITLED | |
6 | 6 | AN ACT | |
7 | 7 | relating to the requirements for interlocal contracts. | |
8 | 8 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
9 | 9 | SECTION 1. Section 791.011(d), Government Code, is amended | |
10 | 10 | to read as follows: | |
11 | 11 | (d) An interlocal contract must: | |
12 | 12 | (1) be authorized by the governing body of each party | |
13 | 13 | to the contract unless a party to the contract is a municipally | |
14 | 14 | owned electric utility or a municipally owned water utility, in | |
15 | 15 | which event the governing body may establish procedures for | |
16 | 16 | entering into interlocal contracts that do not exceed $100,000 | |
17 | 17 | without requiring the approval of the governing body; | |
18 | 18 | (2) state the purpose, terms, rights, and duties of | |
19 | 19 | the contracting parties; and | |
20 | 20 | (3) specify that each party paying for the performance | |
21 | 21 | of governmental functions or services must make those payments from | |
22 | 22 | current revenues available to the paying party. | |
23 | 23 | SECTION 2. The changes in law made by this Act apply only to | |
24 | 24 | an interlocal contract entered into on or after the effective date | |
25 | 25 | of this Act. An interlocal contract entered into before the | |
26 | 26 | effective date of this Act is governed by the law in effect on the | |
27 | 27 | date the contract was entered into, and the former law is continued | |
28 | 28 | in effect for that purpose. | |
29 | 29 | SECTION 3. This Act takes effect September 1, 2019. |