Texas Senate Bill SB2600

Texas 2023 - 88th Regular

• Filed: 4/6/23
• Out of Senate Committee: 4/28/23
• Voted on by Senate: 5/4/23
• Out of House Committee: 5/11/23
• Voted on by House: 5/12/23
• Governor Action: 5/27/23

Caption

Relating to the creation of the Firefly Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The creation of the Firefly Municipal Utility District will significantly affect property owners within its boundaries. The district will have the authority to impose assessments, fees, and taxes on local property to fund its projects. It can also issue bonds to finance road projects, requiring a portion of local tax revenue. This shift may impact local taxation dynamics and the financial obligations of residents, potentially resulting in increased rates for property owners. Moreover, the district's establishment is anticipated to enhance infrastructure in previously undeveloped areas, facilitating future growth and development.

Summary

Senate Bill 2600 pertains to the establishment of the Firefly Municipal Utility District No. 1. This bill outlines the formation of a municipal utility district that encompasses approximately 2,454 acres of unincorporated land in Montgomery County, Texas. Primarily, the district is created to provide utility services and infrastructure improvements, including but not limited to the construction and maintenance of roads and drainage systems. The bill grants the district limited powers of eminent domain, allowing it to acquire property necessary for its operations, although it prohibits the exercise of this power unless approved under strict regulations.

Sentiment

The sentiment surrounding SB 2600 has been largely positive among stakeholders who see the municipal utility district as a vehicle for necessary growth in Montgomery County. Supporters argue that it will provide essential services to an expanding community and improve local infrastructure. Nevertheless, some concerns have been raised regarding the limited powers of eminent domain, with critics highlighting potential abuses and the effects on property rights. Overall, the bill has garnered broad bipartisan support, as evidenced by its passage in both chambers with substantial majorities.

Contention

While the bill appears beneficial for community development, notable contention arises around the limited eminent domain powers conferred to the district. Critics fear that these powers might enable the acquisition of private properties against the owners' wishes and without appropriate compensation. Additionally, discussions concerning the oversight and governance of the district board, including the election of directors, have sparked debate regarding the district's accountability to the community it serves. Ensuring balanced representation and transparent decision-making processes in the district's governance will be crucial to addressing these concerns.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 7985. Montgomery County Municipal Utility District No. 157
  • Section: New Section
  • Section: New Section

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: 102
  • Section: 107
  • Section: 108
  • Section: 102
  • Section: New Section
  • Section: 102
  • Section: 107
  • Section: 108

• Chapter 54. Municipal Utility Districts
  • Section: 601
  • Section: 602
  • Section: 601
  • Section: 602
  • Section: New Section
  • Section: 601
  • Section: 602