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| 3 | 5 | | |
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| 4 | 6 | | A BILL TO BE ENTITLED |
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| 5 | 7 | | AN ACT |
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| 6 | 8 | | relating to the requirements for interlocal contracts. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Section 791.011(d), Government Code, is amended |
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| 9 | 11 | | to read as follows: |
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| 10 | 12 | | (d) An interlocal contract must: |
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| 11 | 13 | | (1) be authorized by the governing body of each party |
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| 12 | 14 | | to the contract unless a party to the contract is a water utility |
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| 13 | 15 | | owned by a municipality containing more than 75 percent of the |
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| 14 | 16 | | population of a county with a population of 2 million or more or a |
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| 15 | 17 | | municipally owned electric utility, in which event the governing |
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| 16 | 18 | | body may establish procedures for entering into interlocal |
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| 17 | 19 | | contracts that do not exceed $100,000 without requiring the |
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| 18 | 20 | | approval of the governing body; |
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| 19 | 21 | | (2) state the purpose, terms, rights, and duties of |
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| 20 | 22 | | the contracting parties; and |
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| 21 | 23 | | (3) specify that each party paying for the performance |
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| 22 | 24 | | of governmental functions or services must make those payments from |
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| 23 | 25 | | current revenues available to the paying party. |
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| 24 | 26 | | SECTION 2. The changes in law made by this Act apply only to |
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| 25 | 27 | | an interlocal contract entered into on or after the effective date |
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| 26 | 28 | | of this Act. An interlocal contract entered into before the |
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| 27 | 29 | | effective date of this Act is governed by the law in effect on the |
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| 28 | 30 | | date the contract was entered into, and the former law is continued |
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| 29 | 31 | | in effect for that purpose. |
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| 30 | 32 | | SECTION 3. This Act takes effect September 1, 2025. |
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