BILL ANALYSIS

H.B. 4205

By: Bell

Special Purpose Districts

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties claim that because municipal utility districts provide necessary water, wastewater, and drainage infrastructure and services to areas that are not served by another municipal entity, most development and economic growth around the greater Houston area occurs within those districts. The parties note that the Porter Special Utility District was created approximately one decade ago by the Texas Commission on Environmental Quality, but because of certain limitations on the district's ability to provide this type of infrastructure and services, the district has consented to the inclusion of property within its boundaries in other overlapping municipal utility districts in order to avoid interfering with economic development and growth. The parties assert that those limitations hinder the Porter Special Utility District's ability to support economic development and growth within its boundaries and that the overlapping of those districts has caused confusion to residents living in and out of the district. H.B. 4205 seeks to address these issues.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 4205 amends the Special District Local Laws Code to establish provisions relating to the Porter Special Utility District. The bill establishes that the district has the powers and duties necessary to accomplish the purposes for which the district is created and has all of the powers and duties provided by general law of the state applicable to special utility districts. The bill authorizes the district to establish and maintain defined areas or designated property in accordance with certain statutory provisions applicable to municipal utility districts, including the power to impose taxes and issue bonds in the defined areas or designated property. The bill authorizes the district to annex land to an existing defined area or designated property in the same manner as land annexed to certain water districts as provided by specified statutory provisions. The bill requires land annexed to a defined area or designated property to also be included in the district but establishes that the land is not required to be contiguous to the defined area or designated property into which it is annexed. The bill grants the district, in a defined area or designated property created by the district, the powers and duties provided by the general law of the state applicable to municipal utility districts. 

EFFECTIVE DATE

September 1, 2015.