SRC-VRA S.B. 1617 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1617
78R4387 MXM-DBy: Ellis, Rodney
Intergovernmental Relations
4/6/2003
As Filed


DIGEST AND PURPOSE 

Under current law, a municipal utility district (MUD) will reimburse at
least 70 percent, and in some cases up to 100 percent, of development
infrastructure costs through collected tax revenue. However, current
statute limits developer reimbursements by municipalities to an amount not
greater than 30 percent of such costs.  Any amount reimbursed over the 30
percent cap requires the municipality to comply with the competitive bid
law, which involves a cumbersome process of taking bids, advertising, and
awarding contracts.  As proposed, S.B. 1617 increases the cap on developer
reimbursables from municipalities to a level not to exceed 70 percent.   

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 212.072(b), Local Government Code, to require
that the level of participation by a municipality for total public
improvements may not exceed 70, rather than 30, percent of the total by
contract price.  

SECTION 2.  Effective date:  upon passage or September 1, 2003.