Texas 2023 - 88th Regular

Texas Senate Bill SB2605

Filed
4/12/23  
Out of Senate Committee
4/28/23  
Voted on by Senate
5/3/23  
Out of House Committee
5/18/23  
Bill Becomes Law
 

Caption

Relating to the creation of the Knob Creek Municipal Utility District of Bell County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The legislation profoundly impacts state laws governing municipal utility districts, as it legitimizes the creation of new districts with specific powers. By doing so, it facilitates the allocation of funds for local development through the issuance of bonds, which can enhance infrastructure significantly in underserved areas. However, the bill also restricts the district from exercising the power of eminent domain unless a two-thirds vote is obtained, which places important checks on the district's authority and aims to protect the rights of property owners.

Summary

Senate Bill 2605 establishes the Knob Creek Municipal Utility District in Bell County, offering it limited powers such as the authority to issue bonds and to impose assessments, fees, and taxes. The bill is primarily characterized as template legislation, which means it utilizes standard language commonly found in similar bills related to the creation of municipal utility districts. It mandates that the district serves a public purpose and benefit, particularly focusing on the improvement and maintenance of essential infrastructure, including roads and storm drainage systems.

Sentiment

The sentiment seen during discussions around SB 2605 appears to be largely supportive among legislators, with strong bipartisan support demonstrated through the voting process. The bill passed the Senate with a vote of 27 to 3, and the House with a vote of 101 to 37, indicating a general consensus on the necessity of creating the district. However, there exists an undercurrent of caution about the implications of granting any form of eminent domain power, even if limited.

Contention

Notable points of contention included debates regarding the extent of the district's powers, particularly concerning the ability to issue bonds without needing bureaucratic hurdles, which some lawmakers viewed as potentially bypassing necessary checks and balances. Additionally, concerns over future implications of the district's power to impose assessments and taxes on residents were raised; ensuring that such financial burdens do not disproportionately impact citizens in the district remains a pivotal concern.

Texas Constitutional Statutes Affected

Special District Local Laws Code

  • Chapter 8001. Lerin Hills Municipal Utility District Of Kendall County
    • 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: 102
    • Section: 107
    • Section: 108
  • Chapter 54. Municipal Utility Districts
    • Section: New Section
    • Section: 601
    • Section: 602
    • Section: 016
    • Section: 0165
    • Section: 016
    • Section: 0165
    • Section: 601
    • Section: 602
    • Section: New Section

Companion Bills

TX HB5408

Identical Relating to the creation of the Knob Creek Municipal Utility District of Bell County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Similar Bills

TX HB3924

Relating to the creation of the Comal Trinity Groundwater Conservation District; providing authority to issue bonds; providing authority to impose assessments, fees, or surcharges.

TX HB2640

Relating to the creation of the Western Travis County Groundwater Conservation District; providing general law authority to issue bonds and exercise the power of eminent domain; providing general law authority to impose assessments, fees, surcharges, or taxes.

TX SB1360

Relating to the creation of the Aransas County Groundwater Conservation District; providing authority to issue bonds and impose a tax; providing general law authority to impose fees and surcharges.

TX HB4207

Relating to the creation of the Aransas County Groundwater Conservation District; providing authority to issue bonds and impose a tax; providing general law authority to impose fees and surcharges.

TX HB4327

Relating to the creation of the Southwest Travis County Special Utility District; providing authority to issue bonds; granting a limited power of eminent domain; providing authority to impose fees and assessments.

TX HB1523

Relating to the creation of the Southwest Travis County Special Utility District; providing authority to issue bonds; granting a limited power of eminent domain; providing authority to impose fees and assessments.

TX HB4038

Relating to the creation of the Western Travis County Groundwater Conservation District; providing general law authority to issue bonds; providing authority to impose fees.

TX HB4743

Relating to the creation of the Terrell County Groundwater Conservation District; providing authority to impose a tax and issue bonds.