JBM C.S.H.B. 666 75(R)BILL ANALYSIS NATURAL RESOURCES C.S.H.B. 666 By: Krusee 4-2-97 Committee Report (Substituted) BACKGROUND The condition of streets can directly affect an established drainage system. Consequently, poorly maintained streets may prevent drainage systems from properly controlling, storing and preserving flood waters. At present, municipal utility districts (MUDs) cannot issue bonds for repairs and maintenance of streets, and some counties cannot afford to repair all the streets that need maintenance. Finally, many MUDs have excess bond funds from other bonded projects that could be used to repair streets. PURPOSE To allow MUDs, that have existed for at least 10 years, to issue bonds to repair and maintain streets within the district. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Subchapter (D), Chapter 54, Water Code, by adding Section 54.242 to provide as follows: A district established by general law or special act of the legislature and in existence for at least 10 years may repair or maintain a street within the district as provided by Section 54.522. SECTION 2.Subchapter (F), Chapter 54, Water Code, is amended by adding Section 54.522 to provide as follow: (a) The legislature finds that the condition of streets affects: (1) the control, storage, preservation, and distribution of the state's storm and flood waters; (2) the control, abatement, or change of any shortage or harmful excess of water; and (3) a municipal utility district's ability to accomplish its purposes. (b) State policy allows a municipal district, under certain circumstances, to take action necessary to prevent street conditions within the district from adversely affecting the control, storage, preservation, and distribution of the flood waters. (c) Provides that a district created by general law or special act of the legislature and in existence for at least 10 years may issue bonds for repairing or maintaining streets if approved by a majority vote of the resident electors of the district voting in an election called and held for that purpose. (d) Provides that an election required by this section must be held on the uniform election date in November under Section 41.001, Election Code. An election can also be held in conjunction with general elections for state and county officers. SECTION 3.Emergency clause and effective date. COMPARISON OF ORIGINAL TO SUBSTITUTE In section 2, proposed Section 54.222(c) of the Water Code, the original authorized certain municipal utility districts to both issue bonds and use the proceeds for repairing and maintaining streets. In the same section, the committee substitute authorizes certain municipal utility districts to issue bonds for repairing and maintaining streets, but it does not stipulate that the proceeds from the bonds be used for only that purpose. Also, the caption of the original included the words "and use bond proceeds" (which were deleted in the substitute) before the words "for that purpose" at the end of the caption.