BILL ANALYSIS H.B. 3940 By: Isaac Special Purpose Districts Committee Report (Unamended) BACKGROUND AND PURPOSE Interested parties note that continuing development and growth in Central Texas, including Hays County, has created the need for large-scale, permanent improvements such as water supply and distribution facilities, wastewater collection and treatment facilities, drainage and flood control projects, and major thoroughfare improvements. H.B. 3940 seeks to help address this need by providing for the creation of a municipal utility district in Hays County. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3940 amends the Special District Local Laws Code to create the LaSalle Municipal Utility District No. 5, subject to voter approval at a confirmation election and municipal consent. The bill grants the district the power to undertake certain road projects. The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes. The bill, if it does not receive a two-thirds vote of all the members elected to each house, prohibits the district from exercising the power of eminent domain. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2013. BILL ANALYSIS # BILL ANALYSIS H.B. 3940 By: Isaac Special Purpose Districts Committee Report (Unamended) H.B. 3940 By: Isaac Special Purpose Districts Committee Report (Unamended) BACKGROUND AND PURPOSE Interested parties note that continuing development and growth in Central Texas, including Hays County, has created the need for large-scale, permanent improvements such as water supply and distribution facilities, wastewater collection and treatment facilities, drainage and flood control projects, and major thoroughfare improvements. H.B. 3940 seeks to help address this need by providing for the creation of a municipal utility district in Hays County. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3940 amends the Special District Local Laws Code to create the LaSalle Municipal Utility District No. 5, subject to voter approval at a confirmation election and municipal consent. The bill grants the district the power to undertake certain road projects. The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes. The bill, if it does not receive a two-thirds vote of all the members elected to each house, prohibits the district from exercising the power of eminent domain. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2013. BACKGROUND AND PURPOSE Interested parties note that continuing development and growth in Central Texas, including Hays County, has created the need for large-scale, permanent improvements such as water supply and distribution facilities, wastewater collection and treatment facilities, drainage and flood control projects, and major thoroughfare improvements. H.B. 3940 seeks to help address this need by providing for the creation of a municipal utility district in Hays County. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3940 amends the Special District Local Laws Code to create the LaSalle Municipal Utility District No. 5, subject to voter approval at a confirmation election and municipal consent. The bill grants the district the power to undertake certain road projects. The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes. The bill, if it does not receive a two-thirds vote of all the members elected to each house, prohibits the district from exercising the power of eminent domain. EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2013.