HBA-CBW H.B. 3195 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3195 By: Howard Natural Resources 4/4/2001 Introduced BACKGROUND AND PURPOSE Municipal Utility Districts (MUDs) are political subdivisions of the state and are created to supply water and wastewater services to areas not served by municipal utility services. MUDs may buy property, make loans, issue revenue bonds secured by ad valorem taxes, and charge user fees. MUDs are usually located within a city's extraterritorial jurisdiction, but may also be located within a city's boundaries. The Fort Bend County Municipal Utility District Number __ is composed of approximately 2337 acres of property owned by the Texas Department of Transportation (TxDOT) and is intended to enhance the value of the property before the General Land Office offers it for sale on behalf of TxDOT. House Bill 3195 creates the Fort Bend County Municipal Utility District Number __. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3195 creates the Fort Bend County Municipal Utility District Number __ (district) (Sec. 1.01). The bill provides that the district is governed by a board of five directors (board) and sets forth provisions regarding the appointment, election, qualifications, and terms of the directors as well as the organization and administration of the board (Secs. 2.01- 2.07 and 10.02) The bill authorizes the board to employ a general manager, consulting engineers, financial consultants, attorneys, and auditors (Sec. 2.09). The bill authorizes the district to maintain its principal office in Fort Bend County or Travis County if the district has not issued bonds and requires the district to maintain its principal office in Fort Bend County if the district has issued bonds (Sec. 2.11). The bill sets forth the authority, powers, and duties of the district and authorizes the district to adopt rules to implement the Act (Secs. 3.01 - 3.07). The bill provides that a person who violates a rule, permit, or order of the district is subject to a civil penalty of not less than $50 and not more than $1,000 for each violation or each day of a continuing violation (Sec. 3.05). The bill also sets forth provisions regarding the acquisition and disposition of property (Sec. 3.08). The bill authorizes the district to establish fees and charges and to apply for and receive loans and grants (Secs. 4.02 and 4.03). The bill authorizes the district to issue bonds, bond anticipation notes, and refunding bonds and authorizes the board to levy and collect ad valorem taxes on land within the district (Secs. 5.01- 5.06). The bill authorizes additional land to be added to the district and sets forth provisions regarding the exclusion of land from the district (Articles 6 and 7). Under certain conditions, the bill authorizes the board to divide the territory of the district into two or more districts and authorizes the city to annex the district, including districts resulting from a division (Articles 8 and 9). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect on the 91st day after adjournment.