S.B. 1933 78(R)    BILL ANALYSIS


S.B. 1933
By: Staples
Natural Resources
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Waterwood Municipal Utility District  (MUD) is located in San Jacinto
County.  Portions of this MUD have never received utility services.
Currently the board of the MUD does not have authority to exclude land
from the district.  S.B. 1933 simply allows the Waterwood Municipal
Utility Board to exclude land from the district after a signed petition
from the owners of a majority of the acreage being excluded indicates a
desire for exclusion.  The board would then call a hearing to consider
exclusion of the land.   S.B. 1933 does not affect pledged security for
any outstanding debt of the district, such security remains until the
final payment of the debt.  The board members of the Waterwood Municipal
Utility District will have complete jurisdiction over the exclusion of
land from the district and the petition to exclude land must be filed with
the board before August 31, 2005. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Creates definitions for this section. 

SECTION 2. Creates a new special law "Exclusion of Land  Within District."
It requires a petition signed by the owner of a majority of the acreage
indicating the desire to be excluded, a claim that the district has not
provided utility services, facts for the board to make findings, and a
requirement to file the petition by August 31, 2005.  In addition, the
section allows the board to find in favor of the petition if it is
determined that the district has never provided utility service, the
district has imposed a tax for 28 years, if all the fees and taxes have
been fully paid on or before the date of the petition, and the executive
director of  TCEQ has no objection upon review. 

SECTION 3. Requires that the excluded land serve as security on the debt
until the districts final debt payment is made.  It also requires any
excluded land owner to pay their proportionate share of the outstanding
debts. 


EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect on September 1, 2003.