Bill Caption

Relating to the powers and duties of the Pine Forest Municipal Utility District; providing authority to issue bonds and impose a tax.

Fiscal Notes

Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.  

Bill Analysis

SB 2053 seeks to allow the Pine Forest Municipal Utility District (MUD) authority to issue bonds to pay  design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this state, a county, or a municipality for operation and maintenance macadamized, graveled, or paved roads, or improvements, including storm drainage, in aid of those roads.

The district may not issue bonds payable from ad valorem taxes to finance a road project unless the issuance is approved by a vote of a two-thirds majority of the district voters voting at an election held for that purpose. At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the district.

Vote Recommendation Notes

SB 2053 would provide the legislative authorization necessary for the Pine Forest Municipal Utility District to establish road works projects. The bonding authority given to the Pine Forest Municipal Utility District only has local application. While this bill would expand the powers of a special purpose district, due to the limited local nature of this bill and the unique role MUDs play in allowing development to take place without putting the broader tax base on the hook for the costs we are neutral on this legislation.