BILL ANALYSIS

Senate Research Center	S.B. 992
85R5392 DMS-F	By: Creighton
	Intergovernmental Relations
	4/7/2017
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Wood Trace Municipal Utility District No. 3, of Montgomery County, Texas (district) encompasses an area within Montgomery County. The land located within the district is proposed to be predominately developed for single-family use and is in need of new and expanded road facilities.

The Act authorizes the district to impose taxes and issue bonds and obligations to provide road facilities to the district.

As proposed, S.B. 992 amends current law relating to providing road district powers to the Wood Trace Municipal Utility District No. 3 of Montgomery County, Texas, and provides authority to issue bonds.

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 7965, as follows:

CHAPTER 7965. WOOD TRACE MUNICIPAL UTILITY DISTRICT NO. 3 OF MONTGOMERY COUNTY, TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7965.001. DEFINITION. Defines "district" as the Wood Trace Municipal Utility District No. 3 of Montgomery County, Texas.

Sec. 7695.002. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. (a) Provides that the district is created to serve a public purpose and benefit.

(b) Provides that the district is created to accomplish certain purposes.

SUBCHAPTER B. POWERS AND DUTIES

Sec. 7965.101. AUTHORITY FOR ROAD PROJECTS. Authorizes the district under Section 52 (Counties, Cities or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds), Article III (Legislative Department), to design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads.

Sec. 7965.102. ROAD STANDARDS AND REQUIREMENTS. (a) Requires a road project to meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located.

(b) Requires the road project, if a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, to meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located.

(c) Requires the Texas Transportation Commission, if the state will maintain and operate the road, to approve the plans and specifications of the road project.

SUBCHAPTER C. BONDS.

Sec. 7965.201. BONDS FOR ROAD PROJECTS. Prohibits the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes from, at the time of issuance, exceeding one-fourth of the assessed value of the real property in the district.

SECTION 2. 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 3. Effective date: upon passage or September 1, 2017.