BILL ANALYSIS

C.S.H.B. 5397

By: Wilson

Land & Resource Management

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The 3 B&J Municipal Utility District, located in unincorporated Williamson County, is currently authorized to provide certain services to land located within district boundaries. There is a need to update the district's enabling legislation to revise property tax provisions, repeal certain provisions that are no longer applicable, and change the district's name. C.S.H.B. 5397 makes these updates, including changing the district's name to the Williamson County Municipal Utility District No. 51.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 5397 amends the Special District Local Laws Code to rename the 3 B&J Municipal Utility District as the Williamson County Municipal Utility District No. 51.

C.S.H.B. 5397 removes the requirement for the district's board of directors, at the time bonds or other obligations payable wholly or partly from property taxes are issued, to impose a continuing direct annual property tax, at a rate not to exceed the voter approved rate, for each year that all or part of the bonds are outstanding. The bill requires the board instead at such time to provide for the annual imposition of such a tax, without limit to the rate or amount of the tax while all or part of the bonds are outstanding as provided by specified statutory municipal utility district provisions.

C.S.H.B. 5397 repeals the following provisions:

· a requirement for the district to obtain the approval of the Brazos River Authority for the design of any district wastewater treatment facility;

· a provision establishing that only the authority or a provider approved by the authority may provide wastewater service in the district;

· a requirement for the district to comply with the terms of the "Agreement Regarding Sewer Services Areas and Customers" among the Lower Colorado River Authority, the Brazos River Authority, the City of Georgetown, the City of Liberty Hill, and the Chisholm Trail Special Utility District dated February 1, 2005; and

· requirements for the district, after July 1, 2017, to repair and maintain any streets in the district at the district's expense and for such repair and maintenance to meet all applicable construction standards and regulations of the City of Georgetown and Williamson County.

C.S.H.B. 5397 establishes that the district retains all the rights, powers, privileges, authority, duties, and functions that it had before the bill's effective date. The bill provides for the validation and confirmation of certain district actions and proceedings taken before the bill's effective date and of certain actions and proceedings relating to the district's creation and the consent to such creation.

C.S.H.B. 5397 repeals the following provisions of the Special District Local Laws Code:

· Section 8221.003(b);

· Section 8221.105;

· Section 8221.106;

· Section 8221.107; and

· Section 8221.108.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

C.S.H.B. 5397 differs from the introduced in minor or nonsubstantive ways by conforming to certain bill drafting conventions.