JBM S.B. 1878 75(R)    BILL ANALYSIS


NATURAL RESOURCES
S.B. 1878
By: Wentworth (Krusee)
5-12-97
Committee Report (Unamended)



BACKGROUND 

Currently, a municipal utility district (district) cannot issue bonds or
use existing bond proceeds for repair and maintenance of streets.  While
some counties may not be able to repair all streets requiring maintenance,
some districts may have excess bond funds from bonded projects that could
be used to repair streets.  This bill allows districts that have existed
for at least 10 years to issue bonds and use existing bond revenue to
repair streets within the district.   

PURPOSE

To allow municipal utility districts that have existed for at least 10
years to issue bonds and use existing bond revenue to repair 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 Chapter 54D, Water Code, by adding Section 54.242, as
follows: 

Sec. 54.242.  STREET REPAIR OR MAINTENANCE.  Authorizes a municipal
utility district (district) created by general law or special act of the
legislature in existence for at least 10 years to repair or maintain a
street within the district as provided by Section 54.522. 

SECTION 2. Amends Chapter 54F, Water Code, by adding Section 54.522, as
follows: 

Sec. 54.522. BONDS FOR STREET REPAIR OR MAINTENANCE.  Sets forth the
findings of the legislature regarding the condition of streets.  Provides
that it is the policy of the state to authorize a district in certain
circumstances to take action that is necessary to prevent the condition of
a street within the district from adversely affecting certain matters that
may impede a district's ability to accomplish its purposes.  Authorizes a
district created by general law or special act of the legislature in
existence for at least 10 years to issue bonds for the purpose of
repairing or maintaining streets within the district if the bonds are
authorized by a majority vote of the resident electors of the district
voting in an election called and held for that purpose.  Requires an
election required by this section to be held on the uniform election date
in November as authorized by Section 41.001, Election Code. Authorizes an
election under this section to be held on the date of the general election
for state and county officers, notwithstanding Section 41.003, Election
Code. 

SECTION 3. Emergency clause.
  Effective date: upon passage.