BILL ANALYSIS

 

 

                                                                                                                                    C.S.H.B. 4080

                                                                                                                                           By: Talton

                                                                                                                               Natural Resources

                                                                                                        Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

C.S.H.B. 4080 creates Harris County Municipal Utility District No. 509 (the “District”).  Currently, the land located within the boundaries of the proposed District is undeveloped.  The territory of the District would lie within the corporate limits of the City of Pearland and Harris County.  The District would have all of the powers granted to municipal utility districts operating pursuant to Chapters 49 and 54, Texas Water Code, with road powers pursuant to Article 3, Section 52 of the Constitution of Texas.

 

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.  Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 8217, as follows:

 

CHAPTER 8217.  HARRIS COUNTY MUNICIPAL UTILITY DISTRICT NO. 509

 

Subchapter A.  General Provisions

           

Sec. 8217.001.  DEFINITIONS.  Defines “Board,” “Director,” and “District.”

 

            Sec. 8217.002.  NATURE OF DISTRICT.  Provides that the District is a municipal utility district created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution, and has road powers under Section 52, Article III, Texas Constitution.

 

            Sec. 8217.003.  CONFIRMATION ELECTION REQUIRED.  Requires the Board to hold an election to confirm the creation of the District.  

 

Sec. 8217.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  Provides that all land and other property included in the District will benefit from the improvements and services to be provided by the District.

 

Sec. 8217.005.  INITIAL DISTRICT TERRITORY.  Provides that the District is initially composed of territory described by Section 2 of the Act creating this chapter and provides that a mistake in the field notes does not affect the District’s validity or powers.

 

Subchapter B.  Board of Directors

 

            Sec. 8217.051.  GOVERNING BODY; TERMS.  Sets forth the number and terms of directors of the Board.

 

Sec. 8217.052.  INITIAL DIRECTORS.  Provides the names of the initial directors of the Board for the District and sets forth the method of determining the terms of the initial directors.

 

Subchapter C.  Powers and Duties

 

            Sec. 8217.101.  GENERAL POWERS AND DUTIES.  Provides that the District has the powers and duties necessary to accomplish the purposes for which the District is created.

 

            Sec. 8217.102.  MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES.  Provides that the District has the powers and duties of a municipal utility district, as provided by general law, including Chapters 49 and 54, Water Code.

 

            Sec. 8217.103.  ROAD PROJECTS.  Authorizes the District to construct, acquire, maintain or operate thoroughfares, arterials or collector roads, and improvements in aid of the roads, to the extent they meet the criteria of the municipality or county in whose jurisdiction the road project lies.  Requires road projects to meet applicable municipal and county standards, regulations, and ordinances.

 

Sec. 8217.104.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE OR RESOLUTION.  Requires the District to comply with any ordinance or resolution adopted by a municipality providing consent to the creation of the District or inclusion of land in the District.

 

Subchapter D.  General Financial Provisions

 

            Sec. 8217.151.  ELECTIONS REGARDING TAXES OR BONDS.  Authorizes the district to issue bonds that are secured by revenues or contract payments without an election.  Requires the District to hold an election to obtain voter approval prior to the imposition of ad valorem taxes or the issuance of bonds payable from ad valorem taxes.  Requires approval by two-thirds majority vote of District voters prior to issuance of bonds for road projects.

 

            Sec. 8217.152.  OPERATION AND MAINTENANCE TAX.  Authorizes the District to impose an operation and maintenance tax, if authorized at an election, and to determine the applicable tax rate.

 

Subchapter E.  Bonds

 

            Sec. 8217.201.  AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.  Authorizes the District to issue bonds, notes, or other obligations to pay for authorized purposes of the District. 

 

            Sec. 8217.202.  BONDS FOR ROAD PROJECTS.  Limits the issuance of bonds used to finance road projects to one-fourth of the assessed value of real property in the District.

 

            Sec. 8217.203.              TAXES FOR BONDS AND OTHER OBLIGATIONS.  Requires the District to impose a direct annual ad valorem tax to pay for bonds or other obligations.

 

SECTION 2.  Sets forth the geographical boundaries of the District.

 

SECTION 3.  Sets forth legislative findings regarding the fulfillment of procedural requirements with respect to the notice, introduction, and passage of the Act.

 

SECTION 4.  Provides that the effective date of the Act will be upon passage or September 1, 2007.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2007.

 

COMPARISON OF ORIGINAL TO SUBSTITUTE

 

C.S.H.B. 4080 removes the restriction on the exercise of eminent domain and removes the exemption of impact fees and assessments on certain types of utility property.