HBA-NMO S.B. 1277 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1277 By: Wentworth Natural Resources 5/10/1999 Engrossed BACKGROUND AND PURPOSE Current law does not specify uses for impact fees charged by municipal utility districts (MUDs). S.B. 1277 requires a MUD to use impact fees collected and any interest accrued on the fees collected only for payment of principal and interest on bonds, notes, or other obligations issued by or on behalf of the MUD to finance certain capital improvements or facility expansions. 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. Amends Chapter 54D, Water Code, by adding Section 54.243, as follows: Sec. 54.243. DISPOSITION OF IMPACT FEES. Requires a municipal utility district (MUD) that charges an impact fee to use the fees collected and any interest accrued on the fees collected only for payment of principal and interest on bonds, notes, or other obligations issued by or on behalf of the MUD to finance certain capital improvements or facility expansions. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective.