Bill: HB 2912, 85(R) - 2017

Committee

House Special Purpose Districts

2nd Chamber Committee

Senate Intergovernmental Relations

Vote Recommendation

Vote Recommendation Economic Freedom Property Rights Personal Responsibility Limited Government Individual Liberty
Neutral Neutral Neutral Neutral Neutral Neutral

Author(s)

Phil King

Sponsor(s)

Craig Estes

Bill Caption

Relating to the creation of the New Fairview Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

This is a local bill. HB 2912 would create the New Fairview Municipal Utility District No. 1, granting it certain powers to implement and finance road projects. This includes the authority to issue bonds and impose assessments, fees, and taxes. Compliance standards and other requirements would be instituted. If this Act does not receive a two-thirds vote by all members of each house, this district will have no eminent domain power. This bill would prohibit temporary directors from holding an election to undertake improvement projects, impose taxes or fees, or issue bonds until each municipality has given consent and entered into a development agreement. Likewise, the legislature may not amend this chapter without the consent of the city. Lastly, new city requirements would be established for improvement projects.

Vote Recommendation Notes

While this bill would create a new special purpose district, due to the limited local nature of this bill and the unique role MUDs play in allowing development to take place in a way that makes the users of the service responsible for the cost of that development, we are neutral on this legislation. We do recommend that MUDs be subject to sunset provisions so they do not operate in perpetuity. We also recommend that Section 7987.007 (Senate Committee Report Page 2 lines 20-22) be removed. Not only is it ill-advised for the legislature to give a city final say on whether or not a portion of state law can be changed but it is also contrary to the constitutionally established relationship between the state and its political subdivisions. 

Source URL (retrieved on 03/28/2024 01:03 PM): http://reports.texasaction.com/bill/85r/hb2912?print_view=true