566. 0 l(a). The legislahur enacted chapter 395's prod-, V.T.C.S. rrticle 1269j-4.11, io 1987 es Senete Bii 336. See Acts 1987,fOth Leg., ch. 957. Ds l-11; Brey, Cudill, & Owen, SIIPP(I. at 12.
In 1987, during the second reading of Senate Bii 336 on the House floor, ReprwentativeMillsap~d~16rectian2oftheb~therentencethat~nowcodifiedrs ation 395.011(c) of the Lucel Gwmunent Code-the subsection ebout which you inquire. Debate on S.B. 336 on the Floor of the House, 70th Leg (May 21. 1987) (statement of Representhe Millsap) (tape available hm House Video/Audio Savices). Representative hIiUs8pexpl8inedthe addition simply es an amendmentconcerning I c@G extraterritorid jurisdiction. Id We found no other legislative history iodicating the lGgiSh&SifitWt.
On its face. section 395.011(c) euthorizes e municipelityto contract to provide capital improvements to an area outside its corporate boundaries and extratdtorial jurisdiction and to cherge an impact fee under the contmct. See 13 E. McQuILLIN, MUNICIPAL c ORFORATIONS $37.11. et 51 (3d ed. 1987) (stating that, io geoerel, municipalcorporation lacks euthority to provide improvementsbeyond its ckpomte limits unless legislature has provided otherwise). Nothing in the statute limits e numicipelityto contracting to provide capital improvements only to areas outside the corporete boundaries of another monicipelity.5Nor does the stetute limit a "providing"municipality tochargingimpaa~o~in~oYtddethecorponte~~ofthc"reaiving" UllUliCipatity.
Section 402.001@) of the Local Govemmeot Code authorizes a municip8lityto prch8.w or operate 8 utiUtf8ystem within its boudmies. S8e uhv Loci4 Oov't Code 5 43.056(a) (rquirhg munitipality that proposes to annex area to provide, "by any of the
p. 1691 Hononble 0. H "Ike"Hhs - P8ge 4 (DM-319)
methods by which it extends the 8enks to any other IIu of the municipality,"for extension of municip8l sehces to annexed area). If a municipality drooses to provide utilityravicetOrllorromtOf~citizaubycontnctwithrprovidingmunicip~~,we believet@itmay. Furthamorr,iFthenoeiviagmuniciprrlitychoo~topryforthe capital impmMwnts tbt the providing municipaky quires by permitting the providing municip8lityto charge imp8ct faq we believe that the receiving municiprlity may. If a providiasmuniciprrtity~tochargera~fkinthereceivingareqitrrmydoso only ifthe conhact with the mwiving munic$dity complies with chapter 395 of the Local Government Code. See Local Oov't Code 0 395.01l(a). Fmthen0ore, the providing municipaUtymych8rgemimpactff8eonlyin8ceodam with chapter 395. See id 0 395.01l(c)."
In short, we conclude tbt rection 395.01l(c) authorizes Bmunicipalityto contract to provide capital improvements to an area inside the corporate bound&es of another municipality. MditionaUy, section 395.011(c) authorizes the providing municipality to ~e~impaafecwitbinthecorponte~~ofthereEeivingnnuricipality,but OI@if the path have wntmcted awmdhgly md if the pAding municipality complies withch8pter395oftheLocalGo vernment Code. C!! 13 E. MCQULLIN,THEIAW OF MUNlClFAtCORPORATIONS 0 37.11, at 51 (3d ed. 1987) (stating general rule that one municipality may not tax its own residents for improvananwithinlimitsofulother municipalwrporation).
You next asked whether, under 8ection 395.0455 of the Local Government Code, a providing municipfdity that wntmcts to charge an impact fee to 8n area within the jmisdiction of another municip8litymay indude the 8rea in the providing municipality's apitd improvements plan. Section 395.045!(a), which per&s to "Systemwide Land Use Assumptions,"provides in pertkrt part as follows: (a) In lieu of adopting hnd use asmmptions7 for each service ma, a politicd subdkion may, except for storm water, drainage. flood control, and roadway kcilities, adopt systemwide Land use rtsumptioas,~cbcova~oftberrerrubjCatothejurisdi*ionof the politicalsubdivisionfbr rhc