SRC-TNM H.B. 3589 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3589
By: Keel (Wentworth)
Natural Resources
5-14-97
Engrossed


DIGEST 

Currently, Lakeway Municipal Utility District's boundaries 
include more than 3,357 acres.  A tract 
of 1,300 undeveloped acres that lies within the district has 
recently been purchased by a new owner 
interested in developing the tract immediately.  The district 
does not have bonding capacity sufficient 
to construct the facilities to serve the tract.  H.B. 3589 would 
grant the district the authority to 
exclude land from its boundaries, provided that the landowner 
pays its pro rata share of the 
previously issued tax-supported bonds and debt service payments.

PURPOSE

As proposed, H.B. 3589 authorizes Lakeway Municipal Utility 
District to exclude land from its 
boundaries, provides notice of the exclusion, and adds related 
provisions.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a 
state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. DEFINITIONS. defines "district" and "board."

SECTION 2. EXCLUSION OF LAND.  Authorizes the board of directors 
of the Lakeway 
Municipal Utility District (board) to call a hearing to consider 
excluding land from the Lakeway 
Municipal Utility District (district), or to prohibit the board 
from calling a hearing to exclude land 
from the district.  Sets forth instances in which the board may, 
by order, exclude from the district 
land within the district boundaries on any of the grounds for 
exclusion in Section 49.306, Water 
Code.

SECTION 3. NOTICE OF HEARING.  Sets forth requirements regarding 
notice of an exclusion 
hearing.

SECTION 4. EXCLUSION AND BOND REFUNDING.  Authorizes the exclusion 
authorized by 
this Act to be done contemporaneously with a refunding of the 
district's bonds.  Provides that if the 
exclusion is done in that manner, the only notice required is the 
notice specified by Section 49.304, 
Water Code.

SECTION 5. OTHER APPLICABLE LAW.  Provides that Sections 49.307 
and 49.308, Water 
Code, apply to all exclusions of land under this Act.

SECTION 6. Emergency clause.