HBA - GUM, NMO H.B. 2274 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2274 By: Keel Natural Resources 7/20/99 Enrolled BACKGROUND AND PURPOSE State law does not specifically grant municipal utility districts (MUDs) created by a consent agreement, such as the Wells Branch MUD, the power to enter into an agreement with a municipality which requires payment by the MUD to the municipality for purposes beyond the scope of district activities. H.B. 2274 authorizes the Wells Branch MUD to enter into a contract with a municipality requiring payment to the municipality for mutually agreeable purposes, and to make annual appropriations from its operations and maintenance tax or other revenues for payments to a municipality under the contract. In addition, this bill authorizes the municipality to agree that the district will remain in existence and be exempt from annexation by the municipality for the term of the contract. This bill also provides that such a contract is binding on all subsequent governing bodies of the district and of the municipality for the contract's term. 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. SECTION BY SECTION ANALYSIS SECTION 1. DEFINITION. Defines "district" as the Wells Branch Municipal Utility District, located in Travis and Williamson counties. SECTION 2. PURPOSE. Provides that the purpose of this Act is to meet the special needs of Wells Branch Municipal Utility District (district). SECTION 3. LEGISLATIVE FINDINGS. Provides legislature findings. SECTION 4. Amends Subchapter C, Chapter 42, Local Government Code, by adding Section 42.049, as follows: Sec. 42.049. AUTHORITY OF WELLS BRANCH MUNICIPAL UTILITY DISTRICT. (a) Authorizes the district to contract with a municipality to provide for payments to be made to the municipality for purposes that the governing body of the district determines will further regional cooperation between the district and the municipality, and to provide other lawful terms and considerations that the district and the municipality agree are reasonable and appropriate. (b) Authorizes a contract entered into under this section to be for a term that is mutually agreeable to the parties. Authorizes the parties to renew or extend the contract. (c) Authorizes a municipality to contract with the district to accomplish the purposes set forth in Subsection (a). Authorizes a municipality, in a contract entered into under this section, to agree that the district will remain in existence and be exempt from annexation by the municipality for the term of the contract. (d) Provides that a contract entered into under this section is binding on all subsequent governing bodies of the district and of the municipality for the term of the contract. (e) Authorizes the district to make annual appropriations from its operations and maintenance tax or other revenues lawfully available to the district to make payments to a municipality under a contract entered into under this section. SECTION 5. Emergency clause. Effective date: upon passage.