Texas Senate Bill SB2602

Texas 2023 - 88th Regular

• Filed: 4/11/23

Caption

Relating to the creation of the Sandow Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The bill impacts state laws related to municipal utility districts by defining the scope and authority of the newly created district. Specifically, it allows the district to implement various financial mechanisms, such as imposing operational taxes and issuing bonds without requiring immediate voter approval, albeit with certain stipulations for ad valorem tax projects. This inclusion aims to enhance local governance and provide a structured approach to managing public utilities within the designated area.

Summary

SB2602 aims to establish the Sandow Municipal Utility District No. 1 in Milam County, Texas. The bill gives the district the authority to perform tasks associated with utility governance, such as issuing bonds, imposing assessments, and collecting fees and taxes. The legislation appears to be aimed at facilitating the development of necessary infrastructure improvements, including roads and drainage systems, to support the district's operational needs, as mandated by the Texas Constitution.

Sentiment

The sentiment surrounding SB2602 appears generally supportive among legislators focused on infrastructure development. Proponents view the creation of the Sandow Municipal Utility District as a necessary step to address local utility needs effectively. However, there may be some opposition regarding the provisions that include limited eminent domain powers, which could raise concerns about property rights among local landowners, including notions of overreach in government powers.

Contention

A notable point of contention within SB2602 is its provision on eminent domain power. While the district is granted limited powers for eminent domain, there may be concerns regarding potential abuses of this authority. Additionally, the requirement for municipalities to consent to the creation of the district raises questions about local governance and representation, as different communities within the district may have diverse interests and priorities related to land use and development.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 7986. Montgomery County Municipal Utility District No. 158
  • Section: New Section

Water Code

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

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