| TO: | Honorable Robert Puente, Chair, House Committee on Natural Resources |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB1535 by Fraser (Relating to the issuance of bonds by a municipality for a defined area in an abolished municipal utility district; authorizing a tax. ), Committee Report 2nd House, Substituted |
The bill would add Chapter 108 to Subtitle A, Title 4 of the Local Government Code regarding use of bonds secured by property taxes for a defined area that were issued by a Municipal Utility District after the district is abolished by a municipality if some or all of the bonds were not issued, sold, and delivered:
A municipality would be authorized to issue or sell municipal bonds in an amount not to exceed the amount of the unissued district bonds and to carry out the purposes for which the district bonds were voted.
A municipality would be authorized to establish a public improvement district for the purpose of issuing and selling municipal bonds in an amount not to exceed the amount of the unissued district bonds and for the purpose of carrying out the purposes for which the district bonds were voted. A municpality that establishes a public improvement district may enter into agreements with developers of property in the district for the construction, acquisition, expansion, improvement, or extension of improvements in the district. The bill provides for payment methods regarding the agreements.
Provisions of the bill would apply to actions that occurred before, on, or after the effective date of the bill. The bill would take effect immediately if it were to receive the required two-thirds vote in each house; otherwise, it would take effect September 1, 2007.
| Source Agencies: |
| LBB Staff: | JOB, WK, DB
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