Texas Senate Bill SB2506

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/28/09
• Voted on by Senate: 4/30/09
• Out of House Committee: 5/13/09
• Voted on by House: 5/25/09
• Governor Action: 6/19/09
• Enrolled: 5/26/09
• Passed: 6/19/09

Caption

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

Impact

The establishment of the Gray County Municipal Utility District No. 1 carries significant implications for local governance and public service delivery. It grants new administrative powers to a board of directors elected by the local population, who will oversee the district's operations and ensure services are properly managed. The capability to impose taxes will directly affect local residents, presenting potential concerns about financial burden. Moreover, the authority to issue bonds allows the district to fund substantial infrastructure investments, which can be crucial for development but also raises questions about long-term financial liabilities for taxpayers.

Summary

Senate Bill 2506 establishes the Gray County Municipal Utility District No. 1 in Texas, creating a new local governance entity empowered to provide various utility services to the residents in the specified area. The bill provides the district with the authority to levy taxes and issue bonds to fund its operations and infrastructure projects, linking these capabilities to specific legal determinations about public benefit and necessity. This framework aims to facilitate essential services such as water supply and waste management, which are imperative for the developmental prospects of Gray County.

Contention

One notable point of contention surrounding SB2506 is its provision for the limited power of eminent domain, which allows the district to acquire land necessary for public utility projects but restricts such practices to within a five-mile radius of district boundaries. This raises discussions regarding property rights and the potential impact on local landowners. Additionally, while the ability to levy taxes and issue bonds facilitates funding, there may be debates around transparency and accountability in how these funds are managed. As the district takes shape, community engagement will be essential to address these concerns and ensure alignment with residents’ interests.