AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Continuing development and growth in Central Texas, including Hays County, has created the need for large-scale, permanent improvements such as water supply and distribution facilities, wastewater collection and treatment facilities, drainage and flood control projects, and roadway improvements.  Article XVI (General Provisions), Section 59 (Conservation and Development of Natural Resources and Parks and Recreational Facilities; Conservation and Reclamation Districts), and Article III (Legislature Department), Section 52 (Counties, Cities or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds), of the Texas Constitution provide for the creation of local governmental districts that are authorized to incur indebtedness to provide such permanent improvements and to levy taxes for the maintenance and operation of such improvements and for the repayment of such indebtedness.

 

S.B. 2074 creates the Legacy Municipal Utility District No. 1 (district). The district would include approximately 781.23 acres in Hays County. Along with powers from Chapter 54 (Municipal Utility Districts), Water Code, S.B. 2074 provides for road powers pursuant to Article III, Section 52, Texas Constitution, granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.  In addition, S.B. 2074 allows for the district to divide.

 

As proposed, S.B. 2074 amends current law relating to the creation of the Legacy Municipal Utility District No. 1, grants a limited power of eminent domain, provides authority to issue bonds, provides authority to impose assessments, fees, and taxes.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 7957, as follows:

 

CHAPTER 7957.  LEGACY MUNICIPAL UTILITY DISTRICT NO. 1

 

Sets forth standard language for the creation of the Legacy Municipal Utility District No. 1 (district) in Hays County.  Sets forth standards, procedures, requirements, and criteria for:

 

Creation and approval of the district (Sections 7957.001-7957.006);

 

Size, composition, election, and terms of the board of directors of the district (Sections 7957.051-7957.052);

 

Powers and duties of the district (Sections 7957.101-7957.106); and

 

General financial provisions and authority to impose a tax and to issue bonds and obligations for the district (Sections 7957.151-7957.153 and Sections 7957.201-7957.203).

 

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

 

SECTION 3.  Provides that all requirements of the constitution and 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.  (a)  Provides that, if this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 7957, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 7957.107, as follows:

 

Sec. 7957.107.  NO EMINENT DOMAIN POWER.  Prohibits the district from exercising the power of eminent domain.

 

(b)  Provides that this section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c) (relating to the legislature enacting a general, local, or special law granting the power of eminent domain), Article I, Texas Constitution.

 

SECTION 5.  Effective date: upon passage or September 1, 2015.