Texas Senate Bill SB2577

Texas 2023 - 88th Regular

• Filed: 3/23/23
• Out of Senate Committee: 4/28/23
• Voted on by Senate: 5/3/23
• Out of House Committee: 5/11/23
• Voted on by House: 5/12/23
• Governor Action: 5/27/23

Caption

Relating to the creation of the Atascosa County 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 set to have significant implications on state laws regarding the establishment and operation of municipal utility districts (MUDs) in Texas. Specifically, SB2577 allows for the creation of a new MUD, giving it powers related to the construction and management of essential services, thus potentially streamlining local governance and utility oversight. This could also impact how resources and infrastructure projects are financed, altering the dynamics of local taxation and bond issuance.

Summary

Senate Bill 2577 pertains to the establishment of the Atascosa County Municipal Utility District No. 2, which aims to provide essential services such as water, sewer, drainage, and road infrastructure within the designated area. The bill authorizes the district to levy assessments, fees, and taxes, and grants a limited power of eminent domain, aiming to facilitate the infrastructure development necessary for the community's growth. This legislative act is crucial for local governance and the development of suburban areas that may need structured utility management.

Sentiment

The sentiment surrounding SB2577 appears to be predominantly positive, particularly among local government officials and community members who advocate for improved infrastructure services. There was a general consensus that creating such a district would enhance local governance and streamline utility tasks in the region. However, there could be underlying concerns from specific stakeholders regarding the broad powers granted to MUDs, especially around the authority to impose taxes and eminent domain.

Contention

One notable point of contention in discussions about SB2577 revolved around the limited power of eminent domain it grants to the new municipal district. While proponents argue that this authority is necessary for effective service delivery and infrastructure development, critics may question the implications for landowners and the rights of individuals affected by such public utility expansions. Additionally, the bill's provisions regarding bond issuance and taxation could attract scrutiny from those concerned about fiscal responsibilities and the long-term impacts on the local tax structure.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 7957. Legacy Municipal Utility District No. 1
  • Section: New Section
  • Section: New Section
  • Section: New Section

Water Code

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

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

Local Government Code

• Chapter 43. Municipal Annexation
  • Section: 0751
  • Section: 0751
  • Section: 0751