SRC-JJJ S.B. 1277 76(R)BILL ANALYSIS Senate Research CenterS.B. 1277 By: Wentworth Intergovernmental Relations 6/23/1999 Enrolled DIGEST Currently, there are not specified uses for impact fees charged by municipal utility districts. S.B. 1277 will establish provisions regarding the uses of impact fees charged by municipal utility districts. PURPOSE As enrolled, S.B. 1277 establishes provisions regarding the uses of impact fees charged by municipal utility districts. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 54D, Water Code, by adding Section 54.243, as follows: Sec. 54.243. DISPOSITION OF IMPACT FEES. Requires a municipal utility district (district) that charges an impact fee to use the fees collected and any interest accrued on the fees collected only for payment of principal and interest on bonds, notes, or other obligations issued by or on behalf of the district to finance the capital improvements or facility expansions identified in the required capital improvement plan. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective.