Texas House Bill HB5407

Texas 2023 - 88th Regular

• Filed: 4/24/23
• Out of House Committee: 5/8/23
• Voted on by House: 5/12/23
• Out of Senate Committee: 5/19/23
• Voted on by Senate: 5/24/23
• Governor Action: 6/12/23

Caption

Relating to the creation of the Blanton Creek Estates Municipal Utility District of Fannin County; 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 Blanton Creek Estates Municipal Utility District is expected to have a significant impact on local governance and infrastructure development in Fannin County. By having a dedicated utility district, residents can expect improvements in water and wastewater services, along with enhanced road maintenance capabilities. The ability to issue bonds allows for immediate funding of critical infrastructure projects that might otherwise be delayed within the broader municipal budgetary constraints.

Summary

House Bill 5407 establishes the Blanton Creek Estates Municipal Utility District in Fannin County, aimed at managing water services and infrastructure development in a newly designated area. The bill authorizes the district to issue bonds and impose various assessments and fees necessary for financing utility services and related infrastructure projects. Furthermore, the district can impose property taxes to support these functions, placing a structure in place for sustained financial management and development of needed services.

Sentiment

The sentiment surrounding HB 5407 appears to be largely positive among proponents who support advancing infrastructure and providing essential services in previously underserved areas. However, there are concerns from certain community members regarding the financial implications of new fees and taxes for residents within the district. Overall, the discussions seem to highlight a balance between regional development needs and the responsibility of property owners in funding such initiatives.

Contention

Notable points of contention revolve around the financial powers granted to the district, particularly the authority to impose assessments and property taxes. Some critics worry that this could lead to unexpected financial burdens on local taxpayers, especially in light of the ongoing discussions about tax regulation at the state level. Additionally, the limited power of eminent domain mentioned in the bill raises questions about potential impacts on property rights, although the exact scope and limitations have been clarified to local stakeholders.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 8009. Grayson County Municipal Utility District No. 3
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

Water Code

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

• Chapter 54. Municipal Utility Districts
  • Section: New Section
  • Section: 016
  • Section: 0165
  • Section: New Section
  • Section: 601
  • Section: 602
  • Section: New Section
  • Section: New Section