BILL ANALYSIS

C.S.H.B. 4689

By: Talarico

Land & Resource Management

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been suggested that undeveloped land located within Round Rock would benefit from the creation of a municipal utility district. C.S.H.B. 4689 seeks to provide for the creation of such a district.

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

C.S.H.B. 4689 amends the Special District Local Laws Code to create the Round Rock Municipal Utility District No. 1, subject to municipal consent and voter approval at a confirmation election.  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, 2019.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 4689 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute does not include provisions establishing that:

· any agreement between the district and a municipality related to the municipality's consent to the creation of the district is valid and enforceable; and

· on the issuance of bonds by the district, the district is considered to have waived sovereign immunity to suit by a municipality for the purpose of adjudicating a claim for breach of an applicable agreement.