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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 87(R)

House Bill 3135

House Author:  Cole

Effective:  Vetoed

Senate Sponsor:  Eckhardt


            House Bill 3135 amends the Special District Local Laws Code to revise provisions governing the SH130 Municipal Management District No. 1. Among other changes, the bill provides for county consent for the district to issue bonds, adopt a sales and use tax, and impose a hotel occupancy tax and authorizes the district to define areas or designate district property to pay for improvements, facilities, or services that primarily benefit that area or property and do not generally and directly benefit the district as a whole. The bill exempts the district from certain restrictions on the annexation of a defined area and from a prohibition against imposing impact fees, assessments, or taxes on certain residential property.

Governor's Reason for Veto: "House Bill 3135 would levy special assessments on residential properties and allow the City of Austin to subsequently annex the very improvements paid for by these property owners. The effect of this bill would be to impose additional costs on property owners for specific improvements, only to see the City annex the improved area without bearing any of the cost. I signed property‑tax reform two years ago to keep local governments from spending outside their means. House Bill 3135 evades the intent of those reforms and is unacceptable."