HBA-NMO S.B. 1277 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1277
By: Wentworth
Natural Resources
5/10/1999
Engrossed


BACKGROUND AND PURPOSE 

Current law does not specify uses for impact fees charged by municipal
utility districts (MUDs). S.B. 1277 requires a MUD to use impact fees
collected and any interest accrued on the fees collected only for payment
of principal and interest on bonds, notes, or other obligations issued by
or on behalf of the MUD to finance certain capital improvements or facility
expansions.    

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.  Amends Chapter 54D, Water Code, by adding Section 54.243, as
follows: 

Sec. 54.243.  DISPOSITION OF IMPACT FEES.  Requires a municipal utility
district (MUD) that charges an impact fee to use the fees collected and any
interest accrued on the fees collected only for payment of principal and
interest on bonds, notes, or other obligations issued by or on behalf of
the MUD to finance certain capital improvements or facility expansions.  

SECTION 2.  Effective date: September 1, 1999.
            Makes application of this Act prospective.