Government Code § 763.003

Sec. 763.003. TERMS OF AGREEMENT OR CONTRACT. (a) An agreement or contract authorized by this chapter must specify: (1) the purpose and duration of the agreement or contract; (2) the manner of financing the joint or cooperative undertaking and of establishing and maintaining a budget for the undertaking; (3) any financial arrangement under the agreement or contract in which one municipality agrees to furnish specified services or facilities to another municipality; (4) the precise organization, composition, nature, and powers of any separate legal or administrative entity created under the agreement or contract; (5) appropriate methods of enforcement; (6) the method for terminating the agreement or contract, in whole or in part, and for disposing of property on termination; and (7) any other necessary and proper matters. (b) A separate legal or administrative entity may not be created under an agreement or contract authorized by this chapter if the creation of the entity violates any other law. (c) If the agreement between the municipalities does not establish a separate entity to conduct the joint or cooperative undertaking, the agreement must provide for: (1) an administrator or joint board to administer the undertaking; and (2) the manner of acquiring, holding, and disposing of any property used in the undertaking. (d) If the agreement provides for a joint board, each municipality that is a party to the agreement must be represented. Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1, 1991.