Texas House Bill HB4790

Texas 2009 - 81st Regular

• Out of House Committee: 5/4/09
• Voted on by House: 5/12/09
• Out of Senate Committee: 5/22/09
• Voted on by Senate: 5/27/09
• Governor Action: 6/19/09
• Enrolled: 5/29/09
• Passed: 6/19/09

Caption

Relating to the creation of the Brown's Ranch Municipal Utility District No. 1 of Grayson County; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.

Impact

If enacted, HB4790 will broaden the capacity of local governance through the establishment of the Brown's Ranch MUD. It allows the district to finance essential infrastructure improvements through bond issuance, which can be supported by ad valorem taxes. Moreover, the bill addresses public purpose propositions by including provisions for road improvements and storm drainage systems, thus enhancing the utility services and infrastructure in the designated area.

Summary

House Bill 4790 is aimed at creating the Brown's Ranch Municipal Utility District No. 1 in Grayson County, Texas. The bill grants the proposed district the authority to impose taxes, issue bonds, and establish a limited power of eminent domain. The creation of municipal utility districts (MUDs) is intended to address local water and utility needs, thereby facilitating infrastructure development in the region. This bill signifies the state legislature's response to the need for organized utility services in growing areas of Grayson County.

Contention

Notably, there is often debate surrounding the powers bestowed upon municipal utility districts, particularly concerning their ability to exercise eminent domain and impose taxes. Some stakeholders may express concerns about the potential financial implications for local residents, as new taxes can add to the burden on property owners. Furthermore, the powers to issue bonds without significant oversight can lead to apprehension about financial management within such districts, necessitating a responsible governance framework to mitigate risks.