HBA-LJP S.B. 1207 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1207
By: Sibley
Natural Resources
5/4/2001
Engrossed



BACKGROUND AND PURPOSE 

Under current law, a municipal utility district is authorized to annex
property without the consent of the lienholders of real property in the
district, but is required to obtain the consent of the lienholders of real
property to issue unlimited revenue bonds.  In 1982, Acton Municipal
Utility District (district) was created to maintain a water system for
portions of Hood and Johnson County.  With a waiver from the attorney
general, the district issued revenue bonds in 1998 without the consent of
the lienholders of real property in the district on the condition that the
annexation of the district is validated by state law before the attorney
general certifies any future revenue bonds issued by the district.  Senate
Bill 1207 validates and confirms actions of the board of directors of the
district relating to annexation and validates the boundaries of the
district. 

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. 

ANALYSIS

Senate Bill 1207 validates and confirms any resolution, order, or other act
or attempted act of the board of directors of the Acton Municipal Utility
District (district) relating to an annexation by the district taken before
the effective date of this Act and any annexation by the district since the
creation of the district.  The bill provides that the specified boundaries
of the district are validated as the legal boundaries of the district
(SECTIONS 2 and 3). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.