Texas House Bill HB5416

Texas 2023 - 88th Regular

• Filed: 4/27/23

Caption

Relating to the creation of the Briar Branch Estates Municipal Utility District of Hunt County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The bill significantly alters local governance by creating a new municipal utility district intended to enhance utility services in the area. It formalizes procedures for electing a district board of directors and establishes financial mechanisms to fund necessary infrastructure projects such as roads and drainage improvements. Importantly, it allows the district to manage its finances through taxation and bond issuance, which could facilitate faster development of essential services and infrastructure in the neighborhood.

Summary

House Bill 5416, known as the Briar Branch Estates Municipal Utility District Act, seeks the establishment of a municipal utility district in Hunt County, Texas. This legislation empowers the district to exercise limited eminent domain authority, issue bonds, and impose assessments, fees, and taxes for operational purposes. Its aim is to improve public utilities while ensuring that the corresponding financial obligations associated with these powers are subject to strict local voter approval and compliance with municipal ordinances.

Sentiment

The sentiment around HB5416 appears generally positive, particularly among stakeholders eager for enhanced utility services. Supporters believe it serves a vital public purpose by allowing targeted improvements in infrastructure and utility functions. However, there are potential areas of concern regarding the financial implications and the extent of eminent domain powers, which may elicit apprehension from landowners wary of government overreach and the potential for increased taxes.

Contention

Notable points of contention stem from the proposed powers of eminent domain and taxation associated with the district. Critics may express concerns about how these powers could affect local property owners, especially in terms of land acquisitions for public utility projects. Furthermore, the need for municipal consent before elections and the imposition of any taxes or fees directly connects to local governance dynamics, where some stakeholders fear that such a district could infringe on local control and lead to unwanted financial burdens on residents.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 8011. Far North Fort Worth Municipal Utility District No. 1 Of Tarrant And Wise Counties
  • Section: New Section

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: 004
  • Section: 107
  • Section: 108

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