Texas House Bill HB5337

Texas 2023 - 88th Regular

• Filed: 3/31/23
• Out of House Committee: 5/2/23
• Voted on by House: 5/9/23
• Out of Senate Committee: 5/15/23
• Voted on by Senate: 5/24/23
• Governor Action: 6/13/23

Caption

Relating to the creation of the Montgomery County Municipal Utility District No. 204; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The bill significantly impacts state laws regarding the formation and operation of municipal utility districts in Texas. By allowing the district to exercise limited eminent domain powers, it facilitates the acquisition of necessary land or easements for infrastructure projects. Additionally, the ability to issue bonds and impose taxes positions the district to secure funding for its development plans while ensuring compliance with financial regulations under state law. Overall, HB 5337 aims to streamline operational efficiency for local utility management.

Summary

House Bill 5337 establishes the Montgomery County Municipal Utility District No. 204, delineating its governance, powers, and financial authority. This bill outlines the district's ability to impose assessments, fees, and taxes, and grants it a limited power of eminent domain to acquire land essential for utility operations. The district is intended to enhance local infrastructure and community services, thereby supporting public needs without requiring municipal boundaries or territorial jurisdiction consent. Provisions for bond issuance are also included, enabling the district to fund its projects efficiently.

Sentiment

The sentiment surrounding the bill appears to be generally positive among legislators who view the establishment of the municipal utility district as essential for addressing infrastructure needs in Montgomery County. Supporters argue that the district will provide much-needed services and improvements to the area. However, there may be concerns about the potential for misuse of eminent domain powers and the financial implications on local taxpayers, prompting an ongoing dialogue among community stakeholders and legislators.

Contention

One of the notable points of contention relates to the limited power of eminent domain granted to the district. Critics worry that such authority could lead to land acquisition conflicts or displace residents. While the bill includes provisions to mitigate such risks by restricting eminent domain to specific circumstances, the implications of these powers remain a contentious topic among public officials and community members who advocate for robust protections against potential overreach.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 8061. Montgomery County Municipal Utility District No. 204
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

Water Code

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

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