HBA - GUM, NMO H.B. 2274 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2274
By: Keel
Natural Resources
7/20/99
Enrolled



BACKGROUND AND PURPOSE 

State law does not specifically grant municipal utility districts (MUDs)
created by a consent agreement, such as the Wells Branch MUD, the power to
enter into an agreement with a municipality which requires payment by the
MUD to the municipality for purposes beyond the scope of district
activities.  H.B. 2274 authorizes the Wells Branch MUD to enter into a
contract with a municipality requiring payment to the municipality for
mutually agreeable purposes, and to make annual appropriations from its
operations and maintenance tax or other revenues for payments to a
municipality under the contract.  In addition, this bill authorizes the
municipality to agree that the district will remain in existence and be
exempt from annexation by the municipality for the term of the contract.
This bill also provides that such a contract is binding on all subsequent
governing bodies of the district and of the municipality for the contract's
term. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITION.  Defines "district" as the Wells Branch Municipal
Utility District, located in Travis and Williamson counties. 

SECTION 2.  PURPOSE.  Provides that the purpose of this Act is to meet the
special needs of Wells Branch Municipal Utility District (district). 

SECTION 3.  LEGISLATIVE FINDINGS.  Provides legislature findings.

SECTION 4.  Amends Subchapter C, Chapter 42, Local Government Code, by
adding Section 42.049, as follows: 

Sec. 42.049.  AUTHORITY OF WELLS BRANCH MUNICIPAL UTILITY DISTRICT. (a)
Authorizes the district  to contract with a municipality to provide for
payments to be made to the municipality for purposes that the governing
body of the district determines will further regional cooperation between
the district and the municipality, and to provide other lawful terms and
considerations that the district and the municipality agree are reasonable
and appropriate. 

(b)  Authorizes a contract entered into under this section to be for a term
that is mutually agreeable to the parties.  Authorizes the parties to renew
or extend the contract. 

(c)  Authorizes a municipality to contract with the district to accomplish
the purposes set forth in Subsection (a).  Authorizes a municipality, in a
contract entered into under this section, to agree that the district will
remain in existence and be exempt from annexation by the municipality for
the term of the contract. 

(d)  Provides that a contract entered into under this section is binding on
all subsequent governing bodies of the district and of the municipality for
the term of the contract. 
 
(e)  Authorizes the district to make annual appropriations from its
operations and maintenance tax or other revenues lawfully available to the
district to make payments to a municipality under a contract entered into
under this section. 

SECTION 5.  Emergency clause.
  Effective date: upon passage.