HBA-KDB S.B. 1796 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1796 By: Brown, J. E. "Buster" Natural Resources 5/8/2001 Engrossed BACKGROUND AND PURPOSE Currently, the Baybrook Municipal Utility District No. 1 (district) provides water, sewage, and drainage infrastructure to serve commercial development around the Baybrook Mall area in southeast Houston. However, the district does not have the authority to construct and finance certain road projects. Senate Bill 1796 provides that the district is granted road utility district authority. 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 1796 provides that the Baybrook Municipal Utility District No. 1 (district) is granted road utility district authority, including the authority to repair and maintain streets and roadways in the district. The bill provides that the district has the powers of a metropolitan rapid transit authority, but the district is not subject to the municipal consent or municipal contract requirements. The bill sets forth the benefit and powers of the district. The district is not subject to provisions relating to the creation of a road utility district or acquisition of such a district's powers by a conservation and reclamation district. The bill authorizes the district to make contracts in the same manner as a road utility district and sets forth requirements for the types of projects the district is authorized to construct, acquire, improve, maintain, and operate. The bill authorizes the district to issue bonds, notes, and other obligations secured by revenues or contract payments from any lawful source other than ad valorem taxation without an election and to issue such obligations secured by ad valorem taxation only if a two-thirds majority of the voters in the district approve the issuance. The bill authorizes the district to impose a maintenance tax in an amount not to exceed 25 cents on each $100 of assessed valuation of property in the district if the authority to impose the tax is approved by a majority of the voters of the district voting at an election on that proposition. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.