Texas Senate Bill SB2196

Texas 2021 - 87th Regular

Caption

Relating to the creation of the Cleveland Municipal Utility District No. 2; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The bill is notable for its provisions regarding eminent domain, clearly restricting the district's ability to exercise this power outside of its boundaries, particularly for recreational facilities and road projects. By empowering local governance through the establishment of a utility district, the legislation aims to facilitate organized development and ensure that infrastructure meets community needs. The measures included in SB2196 provide the necessary framework for funding through bonds and taxes, which could ultimately enhance the provision of municipal services in the area designated for development.

Summary

SB2196 proposes the creation of the Cleveland Municipal Utility District No. 2, which aims to establish a municipal utility district in Texas. This district would grant certain powers such as limited eminent domain, authority to issue bonds, and the ability to impose taxes and assessments. The primary purpose of the district is to serve public needs related to utility services, including water, sewer, and road infrastructure. The bill outlines the governance of the district, requiring elections for directors and the necessary municipal consent for its creation.

Contention

Points of contention regarding SB2196 may center around the implications of limited eminent domain powers and how these affect local landowners. Critics could argue that such powers could lead to challenges with property rights and local autonomy. Furthermore, the approval process for securing bonds and imposing taxes could face scrutiny from stakeholders concerned about financial implications for residents. Broadly, discussions may arise concerning how effectively the district will be governed and how transparent the operations will be, as local control versus legislative oversight continues to be a prominent theme in utility governance.