HBA-CBW C.S.H.B. 3195 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3195 By: Howard Natural Resources 4/10/2001 Committee Report (Substituted) 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 134 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. C.S.H.B. 3195 creates the Fort Bend County Municipal Utility District Number 134. 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 C.S.H.B. 3195 creates the Fort Bend County Municipal Utility District Number 134 (district) (SECTION 1.01). The bill sets forth provisions regarding the boundaries of the district (SECTION 1.03). 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 (SECTIONS 2.01- 2.06). The bill authorizes the board to employ a general manager, consulting engineers, financial consultants, attorneys, and auditors (SECTION 2.08). 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 (SECTION 2.10). The bill sets forth the authority, powers, and duties of the district and authorizes the district to adopt rules to implement the Act (SECTIONS. 3.01 - 3.09). The bill authorizes the district to sue for an injunction or a civil penalty and 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 (SECTION 3.05). The bill sets forth provisions regarding depository banks and the disbursement of money and authorizes the district to establish fees and charges and to apply for and receive loans and grants (SECTIONS 4.01 - 4.04). The bill authorizes the district to issue bonds, bond anticipation notes, and refunding bonds and authorizes the county to levy and collect ad valorem taxes on behalf of the district (SECTIONS 5.015.05). The bill authorizes additional land to be added to the district and sets forth provisions regarding the exclusion of land from the district (ARTICLE 6 ). 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 and dissolve the district, including districts resulting from a division (ARTICLES 7 and 8). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3195 differs from the original bill by designating the Fort Bend County Municipal Utility District as Fort Bend County Municipal Utility District Number 134 (district) and sets forth the boundaries for the district (SECTIONS 1.01 and 1.03). The substitute differs from the original bill by requiring the school land board to appoint two initial directors to serve terms expiring on the first Saturday in May 2002 and three initial directors to serve terms expiring on the first Saturday in May 2004, rather than September 1, 2002, and September 1, 2004, respectively (SECTION 2.03). The bill removes the provisions requiring the board of directors of the district (board) to establish a fiscal year for the district. The substitute differs from the original by removing the severability and emergency clauses and provisions regarding levying and collecting taxes, bonds as authorized investments, depository banks, cumulative powers, filing suit, the election of a president and vice president of the board, and quorums.