Texas House Bill HB5367

Texas 2023 - 88th Regular

• Filed: 4/11/23
• Out of House Committee: 5/1/23
• Voted on by House: 5/6/23
• Out of Senate Committee: 5/17/23
• Voted on by Senate: 5/21/23
• Governor Action: 6/11/23

Caption

Relating to the creation of the Solana Ranch Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The passage of HB 5367 will create a framework for the Solana Ranch municipal utility district to address local infrastructure challenges effectively. The district will have the power to finance essential services through the issuance of bonds secured by property taxes, assessments, or other revenues. This setup is expected to facilitate the construction and maintenance of roadways and other public utility systems, thus providing much-needed improvements to the area’s infrastructure. By allowing the district to impose fees and taxes, the bill also establishes a revenue-generating mechanism that can enhance local services and resource management.

Summary

House Bill 5367, pertaining to the establishment of the Solana Ranch Municipal Utility District No. 1, enables the formation of a municipal utility district located in Williamson and Bell Counties. The bill is primarily designed to provide this district with the necessary powers to issue bonds, impose assessments and fees, and grant it limited eminent domain authority. The district encompasses approximately 7,088 acres, which are not within the city limits or extraterritorial jurisdiction of any municipality, underscoring a significant local need for utility management and infrastructure development as expressed by community support.

Sentiment

Overall, the sentiment surrounding HB 5367 appears supportive, particularly within the local communities of Williamson and Bell counties that would benefit from the establishment of the utility district. Community support is emphasized by letters of endorsement from various local officials and entities. While the bill has received broad backing, there could be concerns among some stakeholders about the eminent domain provisions, which some residents may view as a potential threat to property rights.

Contention

Notable points of contention include the limited power of eminent domain granted to the district, which could raise concerns among landowners regarding the potential for property acquisition against their wishes. The bill specifies that the district may not exercise this power without considerable procedural requirements, aiming to balance community needs with individual rights. Additionally, while public testimonies were reportedly positive, the specifics of how fees and assessments would be structured in relation to existing financial burdens for residents could become a topic for further discussion as the district is formed.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 7923. Solana Ranch Municipal Utility District No. 1
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: New Section
  • Section: 107
  • Section: 108
  • Section: 102
  • Section: 102

• Chapter 54. Municipal Utility Districts
  • Section: New Section
  • Section: 601
  • Section: 602
  • Section: 601
  • Section: 602
  • Section: 601
  • Section: 602