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No fiscal implication to the State is anticipated.
HB 3099 would make two changes to the regulations concerning the Venable Ranch Municipal Utility District (VRMUD). Firstly, it would include districts that are created by and within the VRMUD under the laws that prevent the district from becoming dissolved upon being annexed by a city. These annexed districts within the VRMUD may not dissolve until water, sanitary sewer, and drainage improvements are in place to support 90 percent of the territory, or until the district’s board adopts a resolution to dissolve itself.
Secondly, this legislation would allow the annexed districts within the VRMUD to impose an ad valorem tax.
The VRMUD has jurisdiction in areas of Denton County. The district is located in the extraterritorial jurisdiction of the City of Aubrey. According to the author’s statement of intent, “Parties content that clarity is needed regarding certain effects of annexation by the city in relation to a new district created by the division of the Venable Ranch Municipal Utility District No. 1 of Denton County.”
HB 3099 addresses this issue by ensuring that the districts that are annexed by Aubrey are not automatically dissolved until the district has constructed utilities for 90 percent of its territorial jurisdiction. Additionally if the city takes over those duties then the district’s board may elect to dissolve itself.
We stand neutral on HB 3099 because it is a local procedural bill that would not significantly affect our liberty principles. However, it is good that the VRMUD would still be allowed to provide basic utilities until the City of Aubrey can take over those responsibilities.
The Senate chamber sponsor is Senator Estes.