Texas Senate Bill SB1891

Texas 2021 - 87th Regular

Caption

Relating to the effect of municipal annexation of territory in the Roman Forest Public Utility District No. 3.

Impact

The implications of SB1891 on state laws include reinforcing the stability and continuity of public utility services and ensuring that financial liabilities associated with such districts remain intact despite changes in territorial governance. This provision is crucial for maintaining service reliability for residents served by the utility district and provides reassurance to bondholders and stakeholders involved in the district's financing.

Summary

Senate Bill 1891 addresses the effects of municipal annexation specifically regarding the Roman Forest Public Utility District No. 3. The bill proposes to amend existing local laws by detailing the implications of a municipality's annexation of territory that is currently part of this public utility district. A key provision of the bill stipulates that if any portion of the district's territory is annexed into the corporate limits of the City of Roman Forest, the district retains all outstanding debts and obligations and is not dissolved as a result of the annexation.

Conclusion

In summary, SB1891 seeks to provide clarity on the effects of annexation on the Roman Forest Public Utility District No. 3, specifically focusing on debt retention. As this bill moves through the legislative process, discussions about its broader impacts on municipal authority and utility governance are anticipated.

Contention

While the bill seems straightforward in its intent, there may be varying opinions regarding the impact of municipal annexation on the operational autonomy of public utility districts. Some may argue that retaining debts and obligations without dissolution limits the ability of municipal governments to restructure or reevaluate utility services in the context of changing demographics or service areas. Furthermore, the interpretation of how this affects local governance and fiscal responsibility might lead to debates among municipal leaders and residents.