BILL ANALYSIS

 

 

 

H.B. 534

By: Phillips

Natural Resources

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

The Gunter Municipal Utility Districts Nos. 1 and 2 were created by the 80th Legislature, Regular Session, 2007, and codified as Chapters 8238 and 8239, Special District Local Laws Code, respectively.  Since that time the owner of all the land in each district has agreed to annexation of the property into the City of Gunter, where each district will operate as an In-City District. H.B. 534 allows for the operation of each district inside the city, the levying of property taxes and city taxes by each district, and the subdividing of each district.

 

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

 

Gunter Municipal Utility District No. 1

 

H.B. 534 amends the Special District Local Laws Code to make provisions authorizing a city to provide in its written consent for the inclusion of land in a municipal utility district that a contract between the district and the city be entered into prior to the first issue of bonds, notes, warrants, or other obligations of the district inapplicable to the Gunter Municipal Utility District No. 1.

 

H.B. 534 authorizes the municipal utility district to be divided into two or more new districts only if the district has no outstanding bonded debt and is not imposing property taxes.  The bill makes provisions regarding the Gunter Municipal Utility District No. 1 applicable to any new district created by division of the Gunter Municipal Utility District No. 1 and provides that a new district has all the powers and duties of the Gunter Municipal Utility District No. 1.  The bill prohibits a new district created by the division of the Gunter Municipal Utility District No. 1, at the time the new district is created, from containing any land outside the initial territory of the Gunter Municipal Utility District No. 1.  The bill authorizes the board of directors of the Gunter Municipal Utility District No. 1, on its own motion or on receipt of a petition signed by the owner or owners of a majority of the assessed value of the real property in the district, to adopt an order dividing the district.  The bill authorizes the board to adopt an order dividing the district before or after the date the board holds an election to confirm the district's creation.  The bill requires an order dividing the district to name each new district, include the metes and bounds description of the territory of each new district, appoint temporary directors for each new district, and provide for the division of assets and liabilities between the new districts.  The bill requires the Gunter Municipal Utility District No. 1, on or before the 30th day after the date of adoption of an order dividing the district, to file the order with the Texas Commission on Environmental Quality (TCEQ) and record the order in the real property records of each county in which the district is located.

 

H.B. 534 requires a new district created by the division of the Gunter Municipal Utility District No. 1 to hold a confirmation and directors' election as required by the confirmation election provisions applicable to the Gunter Municipal Utility District No. 1.  The bill requires a confirmed new district to provide the election date and results to TCEQ.  The bill establishes that municipal consent to the creation of the Gunter Municipal Utility District No. 1 and to the inclusion of land in the district acts as municipal consent to the creation of any new district created by the division of the Gunter Municipal Utility District No. 1 and to the inclusion of land in the new district.  The bill requires a new district to hold an election as required for the Gunter Municipal Utility District No. 1 to obtain voter approval before the new district created by the division of the Gunter Municipal Utility District No. 1 may impose a maintenance tax or issue bonds payable wholly or partly from property taxes.

 

Gunter Municipal Utility District No. 2

 

H.B. 534 makes provisions authorizing a city to provide in its written consent for the inclusion of land in a municipal utility district that a contract between the district and the city be entered into prior to the first issue of bonds, notes, warrants, or other obligations of the district inapplicable to the Gunter Municipal Utility District No. 2.

 

H.B. 534 authorizes the municipal utility district to be divided into two or more new districts only if the district has no outstanding bonded debt and is not imposing property taxes.  The bill makes provisions regarding the Gunter Municipal Utility District No. 2 applicable to any new district created by division of the Gunter Municipal Utility District No. 2 and provides that a new district has all the powers and duties of the Gunter Municipal Utility District No. 2.  The bill prohibits a new district created by the division of the Gunter Municipal Utility District No. 2, at the time the new district is created, from containing any land outside the initial territory of the Gunter Municipal Utility District No. 2.  The bill authorizes the board of directors of the Gunter Municipal Utility District No. 2, on its own motion or on receipt of a petition signed by the owner or owners of a majority of the assessed value of the real property in the district, to adopt an order dividing the district.  The bill authorizes the board to adopt an order dividing the district before or after the date the board holds an election to confirm the district's creation.  The bill requires an order dividing the district to name each new district, include the metes and bounds description of the territory of each new district, appoint temporary directors for each new district, and provide for the division of assets and liabilities between the new districts.  The bill requires the Gunter Municipal Utility District No. 2, on or before the 30th day after the date of adoption of an order dividing the district, to file the order with TCEQ and record the order in the real property records of each county in which the district is located.

 

H.B. 534 requires a new district created by the division of the Gunter Municipal Utility District No. 2 to hold a confirmation and directors' election as required by the confirmation election provisions applicable to the Gunter Municipal Utility District No. 2.  The bill requires a confirmed new district to provide the election date and results to TCEQ.  The bill establishes that municipal consent to the creation of the Gunter Municipal Utility District No. 2 and to the inclusion of land in the district acts as municipal consent to the creation of any new district created by the division of the Gunter Municipal Utility District No. 2 and to the inclusion of land in the new district.  The bill requires a new district to hold an election as required for the Gunter Municipal Utility District No. 2 to obtain voter approval before the new district created by the division of the Gunter Municipal Utility District No. 2 may impose a maintenance tax or issue bonds payable wholly or partly from property taxes.

 

EFFECTIVE DATE

 

September 1, 2011.