SRC-MKV S.B. 1207 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1207
By: Sibley
Natural Resources
6/8/2001
Enrolled


DIGEST AND PURPOSE 

The Acton Municipal Utility District (Acton MUD), composed of land in Hood
and Johnson counties, was created by petition to the Texas Water Commission
(now the Texas Natural Resource Conservation Commission) in 1982.  As Acton
MUD has grown, it has followed the annexation provisions set out in the
Texas Water Code which does not require the MUD to obtain the consent of
lienholders of real property in the area to be annexed prior to annexation.
However, the attorney general does require the MUD to have obtained
lienholder consent to an annexation before a request by the MUD to issue
unlimited tax bonds will be approved.  The attorney general waived this
requirement when Acton MUD issued revenue bonds in 1998.  However, the
attorney general warned Acton MUD that the legislature must validate its
past annexation before the attorney general would approve the issuance of
any further unlimited tax bonds.  Acton MUD now has a policy in place
requiring lienholder consent before an annexation can occur.  This policy
will prevent a situation similar to the one currently faced by the MUD from
recurring in the future.  Due to rapid growth in Acton MUD's service area,
a bond election is needed this fall to seek approval from the residents of
the district for the MUD to issue unlimited bonds.  S.B. 1207 validates
previous annexations by Acton MUD. 

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.  DEFINITION.  Defines "district" to mean the Acton Municipal
Utility District. 

SECTION 2.  VALIDATION.  Provides that certain actions and annexations of
the district are validated and confirmed as if the actions and annexations
had been done as authorized by law. 

SECTION 3.  VALIDATION OF BOUNDARIES.  Sets forth the boundaries of the
district that are validated as the legal boundaries of the district. 

SECTION 4.  FINDINGS RELATED TO BOUNDARIES.  Sets forth legislative
findings related to the boundaries of the district. 

SECTION 5.  EFFECT ON LITIGATION.  Provides that this Act does not apply to
any matter that, on the effective date of this Act, is involved in
litigation if the litigation ultimately results in the matter being held
invalid by a final judgment of a court or has been held invalid by a final
judgment of a court. 

SECTION 6.  Effective date: upon passage or September 1, 2001.