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.