GUM H.B. 2274 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2274
By: Keel
Natural Resources
4/20/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, municipal utility districts created by a consent agreement are
not specifically granted the power to enter into an agreement with a
municipality which requires payment by the district to the municipality for
purposes beyond the scope of district activities.  The Wells Branch
Municipal Utility District was created through a consent agreement.  H.B.
2274 authorizes the Wells Branch Municipal Utility District to enter into a
contract with a municipality requiring payment to the municipality for
mutually agreeable purposes, and to make annual appropriations from its
operations and maintenance tax or other revenues to the district to make
payments to a municipality under the contract.  In addition, this bill
authorizes the municipality to agree that the district will remain in
existence and be exempt from annexation by the municipality for the term of
the contract.  This bill also provides that such a contract is binding on
all subsequent governing bodies of the district and of the municipality for
the contract's term. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITION.  Defines "district" as the Wells Branch Municipal
Utility District, located in Travis and Williamson Counties. 

SECTION 2.  PURPOSE.  Provides that the purpose of this Act is to meet the
special needs of Wells Branch Municipal Utility District. 

SECTION 3.  LEGISLATIVE FINDINGS.  Provides that the legislature finds that
there exists a public necessity to amend the law to further the
conservation and development of the natural resources of the state within
this district. 

SECTION 4.  Amends Subchapter C, Chapter 42, Local Government Code, by
adding Section 42.049, as follows: 

Sec. 42.049.  AUTHORITY OF WELLS BRANCH MUNICIPAL UTILITY DISTRICT. (a)
Authorizes Wells Branch Municipal Utility district (district) to contract
with a municipality to provide for payments to be made to the municipality
for purposes that the governing body of the district determines will
further regional cooperation between the district and the municipality, and
to provide other lawful terms and considerations that the district and the
municipality agree are reasonable and appropriate. 

(b)  Authorizes a contract entered into under this section to be for a term
that is mutually agreeable to the parties.  Authorizes the parties to renew
or extend the contract. 

(c)  Authorizes a municipality to contract with the district to accomplish
the purposes set forth in Subsection (a).  Authorizes a municipality, in a
contract entered into under this section, to agree that the district will
remain in existence and be exempt from annexation by the municipality for
the term of the contract. 
 
(d)  Provides that a contract entered into under this section is binding on
all subsequent governing bodies of the district and of the municipality for
the term of the contract. 

(e)  Authorizes the district to make annual appropriations from its
operations and maintenance tax or other revenues lawfully available to the
district to make payments to a municipality under a contract entered into
under this section. 

SECTION 5.  Emergency clause.
  Effective date: upon passage.