HBA-KDB S.B. 1796 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1796
By: Brown, J. E. "Buster"
Natural Resources
5/8/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, the Baybrook Municipal Utility District No. 1 (district)
provides water, sewage, and drainage infrastructure to serve commercial
development around the Baybrook Mall area in southeast Houston. However,
the district does not have the authority to construct and finance certain
road projects.   Senate Bill 1796 provides that the district is granted
road utility district authority.  

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. 

ANALYSIS

Senate Bill 1796 provides that the Baybrook Municipal Utility District No.
1 (district) is granted road utility district authority, including the
authority to repair and maintain streets and roadways in the district.  The
bill provides that the district has the powers of a metropolitan rapid
transit authority, but the district is not subject to the municipal consent
or municipal contract requirements.  The bill sets forth the benefit and
powers of the district.  The district is not subject to provisions relating
to the creation of a road utility district or acquisition of such a
district's powers by a conservation and reclamation district.  The bill
authorizes the district to make contracts in the same manner as a road
utility district and sets forth requirements for the types of projects the
district is authorized to construct, acquire, improve, maintain, and
operate.    The bill authorizes  the district to issue bonds, notes, and
other obligations secured by revenues or contract payments from any lawful
source other than ad valorem taxation without an election and to  issue
such obligations secured by ad valorem taxation only if a two-thirds
majority of the voters in the district approve the issuance.  The bill
authorizes the district to impose a maintenance tax in an amount not to
exceed 25 cents on each $100 of assessed valuation of property in the
district if the authority to impose the tax is approved by a majority of
the voters of the district voting at an election on that proposition. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.