BILL ANALYSIS

H.B. 4703

By: Eiland

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The land located within the boundaries of the proposed Galveston County Municipal Utility District No. 76 is undeveloped and lies within the corporate limits of the City of Galveston and Galveston County.  The district would have all of the powers granted to municipal utility districts operating pursuant to Chapters 49 and 54, Water Code, and navigation districts operating pursuant to Chapters 60 and 62, Water Code, with road powers pursuant to Article 3, Section 52, Texas Constitution.

H.B. 4703 creates the Galveston County Municipal Utility District No. 76.

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. 4703 amends the Special District Local Laws Code to set forth standard language for the creation of the Galveston County Municipal Utility District No. 76. 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 with the necessary approval, required compliance with municipal ordinance and resolutions, and the limited use of eminent domain. The bill grants the district the power to undertake certain projects inside or outside the district involving a canal or other waterway, bulkhead, dock, or other improvement necessary or convenient to accomplish the navigation purposes of the district.

H.B. 4703 sets forth general financial provisions authorizing a 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 district, 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.