Texas House Bill HB4029

Texas 2021 - 87th Regular

Caption

Relating to the division of the Montgomery County Municipal Utility District No. 152.

Impact

The implications of HB 4029 are significant as it modifies the existing regulatory framework governing municipal utility districts. By allowing the division of such districts under specific conditions, the bill potentially enhances local governance and management of utility services. It also stipulates that new districts must adhere to the same powers and duties as the original district while requiring proper documentation and approval processes for such divisions.

Summary

House Bill 4029 pertains to the division of the Montgomery County Municipal Utility District No. 152. The bill outlines specific conditions under which the district can be divided into two or more new districts. Notably, it requires that the district must have no outstanding bonded debt and must not impose ad valorem taxes at the time of division. The bill aims to provide a structured process for creating new districts and appointing temporary directors, ensuring continuity in governance during the transition.

Contention

Discussion around HB 4029 may include concerns about the fairness and logistics of dividing existing municipal utility districts. Supporters may argue that this bill allows for better representation and governance of local utility services, particularly if the original district encompasses diverse communities with varying needs. Conversely, detractors might raise issues regarding potential complexities arising from the division process, including how assets and liabilities are handled and the feasibility of managing multiple new districts effectively.