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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 82(R)

House Bill 534

House Author:  Phillips

Effective:  9-1-11

Senate Sponsor:  Estes


            A provision of the Water Code authorizes a city to provide in its written consent for the inclusion of land in a municipal utility district that a contract between the district and the city be entered into prior to the first issue of bonds, notes, warrants, or other obligations of the district.  House Bill 534 amends the Special District Local Laws Code to make this provision  inapplicable to the Gunter Municipal Utility Districts Nos. 1 and 2 and to provide for the division of those districts.

The bill creates the Mustang Ranch Municipal Management District No. 1 to provide certain improvements, projects, and services for public use and benefit.  The district's powers and duties include, subject to certain requirements, the authorization to issue obligations and impose assessments.  The district is prohibited from exercising the power of eminent domain and from imposing a property tax or an impact fee.

The bill creates the Case Creek Municipal Utility District No. 1 of Grayson County, subject to voter approval at a confirmation election. The bill grants the district the power to undertake certain road projects and provides for a district limitation on water supply and wastewater services, for use of district facilities by the Two Way Special Utility District, and for division of the district.  The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes.  The bill prohibits the district from exercising the power of eminent domain outside the district to acquire a site or easement for an authorized road project or recreational facility.