BILL ANALYSIS

C.S.H.B. 2123

By: Olivo

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Currently, the land located within the boundaries of the proposed Fort Bend County Municipal Utility District No. 192 is undeveloped. The territory of the district would lie within the extraterritorial jurisdiction of Sugar Land, Texas, in Fort Bend County.

C.S.H.B. 2123 creates the Fort Bend County Municipal Utility District No. 192, granting the district all the powers granted to municipal utility districts operating under existing provisions of the Water Code, with road powers pursuant to the Texas Constitution.

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

C.S.H.B. 2123 amends the Special District Local Laws Code to set forth standard language for the creation of the Fort Bend County Municipal Utility District No. 192. The bill sets forth general provisions for the nature of the district, the confirmation of the district and election of the board of directors, municipal consent, the district's public purpose and benefit, and initial district territory; the number of members and terms of the board of directors of the district, including provisions for temporary directors; the powers and duties of the district, including the power to undertake certain road projects and the approval necessary for such projects, and the limited use of eminent domain.

C.S.H.B. 2123 sets forth general financial provisions authorizing the district, subject to the approval of district voters with limited exception, to issue bonds and other obligations, impose a property tax for operations and maintenance, and impose contract taxes. The bill requires the board, on bonds payable wholly or partly from property taxes, to provide for the annual imposition of a continuing direct property tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required. The bill requires the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from property taxes to not exceed one-fourth of the assessed value of the real property in the district at the time of issuance. The bill sets forth in detail the initial boundaries of the district.  The bill defines the terms "board," "director," and "district."

EFFECTIVE DATE

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

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2123 expands on the provisions requiring municipal consent by authorizing a municipality that contains district territory to include in the municipality's consent any restriction on or condition to the municipality's consent to the creation of the district.