BILL ANALYSIS

H.B. 2177

By: Olivo

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

 The Sienna Plantation Municipal Utility District No. 5 lies within the extraterritorial jurisdiction of the City of Missouri City and in Fort Bend County. Currently, the district provides water, sewer, drainage, and recreational facilities to land located within its boundaries.

H.B. 2177 grants Sienna Plantation Municipal Utility District No. 5 the power to undertake and finance certain road projects. 

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. 2177 amends the Special District Local Laws Code to set forth standard language to establish the Sienna Plantation Municipal Utility District No.5 as a municipal utility district under the Texas Constitution.  The bill sets forth the powers and duties of the district, including the power to undertake certain road projects and the duty to meet road standards and requirements. The bill  authorizes the district to issue bonds and obligations guaranteed by a property tax on real property within the district to finance a road project, subject to the approval of a two-thirds majority of district voters. 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 defines "district."

H.B. 2177 provides for the Sienna Plantation Municipal Utility District No. 5 to retain all the rights, powers, privileges, authority, duties, and functions that it had before the effective date of this bill.

EFFECTIVE DATE

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