Texas Senate Bill SB2520

Texas 2019 - 86th Regular

Caption

Relating to the powers and duties of the Cy-Champ Public Utility District; providing authority to issue bonds; providing authority to impose a tax.

Impact

The implications of SB2520 on state law are significant as it allows the Cy-Champ Public Utility District to better manage local roadways through financing options that can lead to improved transport systems. By enabling the district to not only design and construct roads but also to finance these operations through bonds, the bill provides a framework that can potentially increase local developments. Moreover, the tax imposition aspect could generate sustained funding for road maintenance and improvements, thereby enhancing the overall quality of local infrastructure.

Summary

Senate Bill 2520 seeks to enhance the powers and responsibilities of the Cy-Champ Public Utility District, primarily by granting it the authority to issue bonds for financing road projects and impose taxes as necessary for maintaining these projects. This reinforces the district's capability to design, construct, and maintain road improvements, including storm drainage systems, thereby potentially elevating the standard of local infrastructure in its jurisdiction. The bill amends existing sections of the Special District Local Laws Code to formalize this expanded authority.

Sentiment

General sentiment around SB2520 appears to lean positive, as stakeholders recognize the necessity for local governments to have the funding and authority needed to address infrastructure needs directly. Support advocated the bill as a means to foster economic growth in the area through better transportation facilities. However, some concerns were raised about residential taxation possibly increasing as a result of bond-related taxes, leading to a potential pushback from citizens wary of additional financial burdens.

Contention

Notable points of contention include the requirement that any bonds payable from ad valorem taxes must receive a two-thirds majority approval from district voters. This stipulation aims to safeguard against excessive borrowing without public oversight but could also delay project timelines if voter turnout does not align with the district's financing needs. Furthermore, debates may arise regarding the balance of power between local and state authorities in managing public utilities, with implications for local governance and taxpayer accountability.