BILL ANALYSIS

 

 

S.B. 2066

By: Eltife

Special Purpose Districts

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

S.B. 2066 creates the Rose City Municipal Utility District.  The district is made up of approximately 4,000 acres located in the corporate limits of the City of Tyler, Smith County, Texas. 

 

The district will be a municipal utility district operating pursuant to Chapters 49 (Provisions Applicable to All Districts) and 54 (Municipal Utility Districts), Water Code.  The district is given the powers and duties provided by those chapters, including the authority to issue bonds, but only to the extent secured by revenue other than ad valorem taxes.  The district is further prohibited from imposing any form of tax on its residents and is prohibited from exercising the power of eminent domain.

 

S.B. 2066 amends current law relating to the creation of the Rose City Municipal Utility District, provides authority to issue bonds, and provides authority to impose assessments and fees.

 

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

 

SECTION 1.  Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 7958, as follows:

 

CHAPTER 7958. ROSE CITY MUNICIPAL UTILITY DISTRICT

 

Sets forth standard language for the creation of the Rose City Municipal Utility District (district).  Sets forth standards, procedures, requirements, and criteria for:

 

Creation and approval of the district, including provisions related to definitions; nature of district; confirmation and directors’ election required; consent of municipality required; findings of public purpose and benefit; and initial district territory (Sections 7958.001-7958.006);

 

Size, composition, election, and terms of the board of directors of the district, including provisions related to governing body and terms; temporary directors; qualifications of directors; and compensation and reimbursement (Sections 7958.051-7958.054);

 

Powers and duties of the district, including provisions related to general powers and duties; municipal utility district powers and duties; compliance with municipal consent ordinance or resolution; and no eminent domain power (Sections 7958.101-7958.104); and

 

General financial provisions and bonds and other obligations for the district, including provisions related to elections regarding bonds; prohibition on imposition of taxes; and authority to issue bonds and other obligations (Section 7958.151-7958.152 and Section 7958.201)

SECTION 2.  Sets forth the initial boundaries of the district as amended.

 

SECTION 3.  Provides that all requirements of the constitution and the laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

 

SECTION 4.  Provides for the effective date of this Act

 

EFFECTIVE DATE

 

This Act takes effect September 1, 2015.