BILL ANALYSIS


                                                         H.B. 320
                                            By: Rabuck (Galloway)
                                      Intergovernmental Relations
                                                          4-18-95
                              Senate Committee Report (Unamended)
BACKGROUND

A particular resident owning land in the New Caney Municipal
Utility District has requested service and paid taxes to the MUD
for several years.  Due to his geographical location, the MUD
charges prohibitive and exorbitant fees to provide service.  The
board of directors of the MUD has decided that the taxpayer should
be excluded from the MUD.

PURPOSE

As proposed, H.B. 320 excludes a certain plot of land from the New
Caney Municipal Utility District.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Defines "district."

SECTION 2. EXCLUSION OF TERRITORY.  Sets forth the boundaries of
the New Caney Municipal Utility district (district) to exclude a
certain plot of land.

SECTION 3. RIGHTS OF BONDHOLDERS.  Provides that the exclusion of
land under this Act does not diminish or impair the rights of the
holders of any outstanding and unpaid bonds, warrants, or other
certificates of indebtedness of the district.

SECTION 4. APPORTIONMENT OF DISTRICT INDEBTEDNESS.  (a)  Provides
that the excluded land is not released from the payment of its pro
rata share of the district's indebtedness.

     (b)  Requires the district to continue to levy taxes each year
     on excluded property at the same rate levied on other property
     of the district until the taxes collected equal its pro rata
     share of the district's indebtedness at the time of the
     exclusion of the land.  Requires the taxes collected to be
     applied exclusively to the payment of the excluded land's pro
     rata share of the indebtedness.
     
     (c)  Authorizes the owner of all or part of the excluded land
     at any time to pay in full the owner's share of the pro rata
     share of the indebtedness of the district.
     
     SECTION 5.     Emergency clause.
           Effective date: upon passage.