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Relating to the creation of the Rose City Municipal Utility District; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments and fees.
No significant fiscal implication to the State is anticipated.
HB 4749 seeks to create a Municipal Utility District (MUD) that would focus on road construction, drainage, wastewater, and other fundamental needs. The bill would also allow the district to issue bonds and levy ad valorem taxes. This district may be split up if it does not issue bonds or impose taxes. The first five members of the board of directors are appointed and temporary. The district is located in Smith County. The bill would prohibit the use of eminent domain.
The municipality must vote to approve the enactment of this legislation.
HB 4749 would provide the legislative requirement necessary to establish fundamental services in the area described in the bill as Rose City Municipal Utility District (MUD). The taxing and bonding authority given to the this municipal utility district would only be applied at a local level. While this bill would create a new special purpose district, due to the local nature of this bill we are neutral on this legislation.
MUD's are a political subdivision of the state that can provide utilities, parks, pools, recreational facilities, and other services to new residential developments within the boundaries of the district. MUDs may levy taxes, collect fees, and issue bonds to provide these services.