BILL ANALYSIS


                                                    C.S.S.B. 1261
                                                   By: Barrientos
                                      Intergovernmental Relations
                                                          4-28-95
                                   Committee Report (Substituted)
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, C.S.S.B. 1261 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 date: upon passage.