BILL ANALYSIS

H.B. 1713

By: Creighton

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The land located in the proposed Blaketree Municipal Utility District No. 1 encompasses an area outside the corporate limits and extraterritorial jurisdiction of any city. The land will be utilized for single family residential and commercial development, and therefore needs to secure water, sewer, drainage, and road services.

H.B. 1713 creates the Blaketree Municipal Utility District No. 1 in order to purchase, acquire, or construct facilities to service the future occupants of the land using tax exempt bonds.

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

H.B. 1713 amends the Special District Local Laws Code to set forth standard language to establish of the Blaketree Municipal Utility District No. 1 of Montgomery County. The bill sets forth standards, procedures, requirements, and criteria for the creation and approval of the district; the size, composition, election, and terms of the board of directors of the district; the powers and duties of the district, including the power to undertake certain road projects; compliance with municipal consent ordinance or resolutions; the limited use of eminent domain; and procedures for the division of the district.

H.B. 1713 sets forth general financial provisions authorizing the district to issue bonds and other obligations secured by revenue other than property tax revenue or by contract payments without an election, and, subject to voter approval, to impose a property tax and issue bonds payable from property tax revenue.  The bill authorizes the district, subject to voter approval, to impose a property tax for district operation and maintenance; authorizes the district to impose a tax other than a property tax for the making of payments on certain contracts; and authorizes the district to issue bonds or other obligations payable from property taxes, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources to pay for any authorized district purpose and to impose a continuing annual property tax for bond payments while all or any part of a bond is outstanding.  The bill sets a cap on the total principal amount of bonds or other obligations issued or incurred to finance road projects when those bonds are backed by property tax revenue. The bill sets forth the initial boundaries of the district. The bill defines "board," "director," and "district" for the purposes of these provisions.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.