BILL ANALYSIS



S.B. 1261
By: Barrientos (Combs/Greenberg)
May 11, 1995
Committee Report (Unamended)


BACKGROUND

The Maple Run Municipal Utility District (district) was created in
1983 by consent agreement with the City of Austin.  Its developers
issued bonds for an amount of infrastructure far in excess of the
development which took place before the recession slowed down
development.  The development partnership broke up, and litigation
ensued between residents and the developer, who left much of the
district undeveloped without subdivision plats being filed.  A
recent development partnership trying to revive building in the
district went bankrupt.  The district services may cease to be
provided if the district is not annexed.

PURPOSE

As proposed, the bill sets forth provisions relating to the
annexation and the provision of services to certain districts by
cities and the assessment of surcharges on the dissolution of those
districts.

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  Amends Chapter 43, Local Government Code, by adding
           Section 43.082, as follows:

           Sec. 43.082.  (a)  Provides that this section applies
           to any district created in or after 1983 within the
           extraterritorial jurisdiction (ETJ) of a municipality
           with written consent by ordinance or resolution as
           required by Section 42.042, Local Government Code, and
           the district has issued not less than $17 million nor
           more than $21 million in bonds repayable in a manner
           authorized under Section 54.503(2), Water Code, before
           June 1, 1993; and constructed all of the facilities for
           which the bonds were issued prior to December 31, 1991.

           (b)  Authorizes the board of directors of a district
           governed by this section to dissolve the district
           pursuant to this section by adopting a resolution at a
           regular meeting of a district.  Requires the
           municipality within whose ETJ the district is located
           to provide full municipal services as defined by Section
           43.056(c), Local Government Code, upon the dissolution
           of a district under this section.

           (c)  Requires the district to be considered to be
           annexed to the municipality within whose ETJ the
           district is located after the adoption of a resolution
           by the municipality without providing notice or holding
           hearings otherwise required for annexation under this
           code, upon the dissolution of a district subject to this
           section.

           (d)  Requires the municipality within whose ETJ the
           district is located to take ownership of the district's
           assets and assume the district's bonding liabilities,
           obligations and other debts, upon the dissolution of a
           district subject to this section.  

           (e)  Authorizes the municipality in which the ETJ the
           district is located to assess certain fees after the
           municipality takes ownership under Subsection (d).

           (f)  Requires the municipality to have no responsibility
           to reimburse the developer of the district or a
           successor for more than $800,000 for engineering and
           construction costs to design and build certain water and
           wastewater facilities, whether temporary or permanent,
           installed after the effective date of this Act. 
           Authorizes any obligation to reimburse the developer to
           be paid in installments over a three-year period.

           (g)  Requires this section to expire December 31, 1996.

SECTION 2  Severability clause.

SECTION 3  Emergency clause.
           Effective upon passage.

SUMMARY OF COMMITTEE ACTION

S.B. 1261 was considered by the committee in a formal meeting on
May 10, 1995.

The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 7
ayes, 0 nays, 0 pnv, 2 absent.