SRC-MWN H.B. 2045 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2045
77R2732 MI-DBy: Williams (Bernsen)
Natural Resources
5/9/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, a district that charges an impact fee is required to use
the fees collected and interest accrued on the fees collected to pay the
principal and interest on bonds, notes, or other obligations of the
district. However, because voters in certain water districts may be
reluctant to approve additional bonds, districts may need the option of
using the collected impact fees and the interest accrued on the collected
fees to help pay for capital improvements or facility expansions. H.B. 2045
provides that a district can pay for capital improvements or facility
expansions with cash payments.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 54.243, Water Code, as follows:

Sec. 54.243. DISPOSITION OF IMPACT FEES. Requires a municipal utility
district (district) that charges a fee that is an impact fee as described
in Section 395.001(4), Local Government Code, to use the fees collected and
any interest accrued on the fees collected only for certain payments. 

SECTION 2. (a) Effective date: September 1, 2001.

(b) Provides that this Act applies to impact fees and interest on the fees
regardless of the date on which the fees were collected or the interest
accrued.