Texas House Bill HB3901

Texas 2013 - 83rd Regular

Caption

Relating to the creation of the Cascades Municipal Utility District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

Impact

The creation of the Cascades Municipal Utility District No. 1 under HB 3901 will significantly affect state laws regarding municipal utility districts. The district has the authority to impose taxes and issue bonds without needing immediate voter approval for certain types of revenue. This shift empowers the local government entities to better manage their resources and development projects using the district’s financial mechanisms. Moreover, the act facilitates the construction and maintenance of essential infrastructure by allowing the district to better raise funds for these initiatives.

Summary

House Bill 3901 proposes the creation of the Cascades Municipal Utility District No. 1 in Texas. This bill empowers the newly established district to issue bonds and to impose assessments, fees, or taxes necessary to fund its operations and projects. The bill outlines the governance of the district, stipulating that it will be managed by a board of directors, with a mix of elected and appointed members from the participating municipalities. The legislation aims to facilitate public infrastructure development, particularly in managing municipal utilities and associated road projects within the delineated area of the district.

Contention

While the bill aims to enhance local governance and funding mechanisms for infrastructure projects, notable points of contention arise regarding the authority granted to the district in terms of bond issuance and taxation. Some legislators may express concerns over the potential fiscal implications for property owners within the district, particularly if taxes are imposed without thorough oversight or community input. Additionally, the requirement for municipal consent before the district can conduct elections for permanent directors may also raise questions about local governance dynamics and the extent of municipal involvement in the district's formation and ongoing operations.