BILL ANALYSIS

S.B. 482

By: Williams

Special Purpose Districts

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties assert that continuing development and growth in Montgomery County has created the need for permanent improvements such as water supply and distribution facilities, wastewater collection and treatment facilities, drainage and flood control projects, and major thoroughfare improvements. Current law provides for the creation of local governmental districts that are authorized to issue bonds or other obligations in order to provide such permanent improvements and to levy taxes for the maintenance and operation of such improvements and for the repayment of such obligations.  S.B. 482 seeks to address this need by creating such a district in Montgomery County.

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

S.B. 482 amends the Special District Local Laws Code to create the Montgomery County Municipal Utility District No. 136, subject to voter approval at a confirmation election and municipal consent. The bill grants the district the power to undertake certain road projects. The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes.  The bill, if it does not receive a two-thirds vote of all the members elected to each house, prohibits the district from exercising the power of eminent domain.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2013.