Texas House Bill HB5404

Texas 2023 - 88th Regular

• Filed: 4/21/23
• Out of House Committee: 5/8/23
• Voted on by House: 5/12/23
• Out of Senate Committee: 5/19/23

Caption

Relating to the creation of the Williamson County Municipal Utility District No. 49; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The establishment of the Williamson County Municipal Utility District No. 49 is expected to enhance the ability of local authorities to manage infrastructure development effectively. By granting the district the power to levy assessments and taxes, as well as the authority to issue bonds without requiring voter approval for certain types of financing, the bill aims to streamline the funding processes necessary for community growth and infrastructure maintenance. It aligns with state laws governing municipal utility districts, thereby reinforcing the framework within which such entities can operate.

Summary

House Bill 5404, sponsored by Representative Wilson, seeks to establish the Williamson County Municipal Utility District No. 49. This district is designed to facilitate infrastructure financing for property development within a designated area of 343 acres in Williamson County, particularly within the extraterritorial jurisdiction of Jarrell. The bill outlines the district’s powers, which include the authority to impose taxation, collect fees, grant eminent domain to a limited extent, and issue bonds for financing projects related to the construction and maintenance of roads and other public utilities.

Sentiment

Overall sentiment towards HB 5404 appears to be supportive, particularly among local community leaders and developers who see the advantages of having a dedicated utility district for managing infrastructure needs. The bill passed the House with a significant majority, indicating a generally favorable reception. The lack of organized opposition during committee discussions further supports this positive sentiment. However, there are inherent concerns regarding the implications of the extent to which eminent domain powers are granted and how they may affect local property rights.

Contention

Despite the overall support, key points of contention include the extent of the powers conferred to the municipal district, particularly regarding eminent domain. While the bill permits limited eminent domain for public utility purposes, stakeholders worry about potential overreach and impacts on local landowners’ rights. Additionally, the methods of funding through assessments and fees raise questions about accountability and transparency, particularly how these financial decisions will be made and communicated to residents of the district.

Texas Constitutional Statutes Affected

Water Code

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

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