Texas Senate Bill SB41

Texas 2023 - 88th 4th C.S.

• Filed: 11/16/23

Caption

Relating to the creation of the Travis County Municipal Utility District No. 27; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The establishment of Municipal Utility District No. 27 under this bill will alter the administrative and operational framework of local governmental services in Travis County. By allowing the district to collect assessments and impose taxes, the bill aims to ensure that funding is available for essential services. Moreover, the power to issue bonds without a vote for revenue sources other than ad valorem taxes lays a foundation for more flexible financing options for growth and development projects that are beneficial to the community. However, this can lead to increased financial obligations for local property owners if not carefully managed.

Summary

Senate Bill 41, known as the Travis County Municipal Utility District No. 27 Act, facilitates the creation of a municipal utility district in Travis County. The bill grants the district limited eminent domain powers, thereby allowing it to acquire property necessary to carry out its functions related to providing essential services like water and sewage and to manage road projects. Additionally, the bill enables the district to issue bonds, impose assessments, fees, and taxes to finance its operations and infrastructure development. The overarching goal is to improve public services and infrastructure in the designated area.

Sentiment

The sentiment surrounding SB41 appears to be generally positive among proponents who argue that the bill will bring much-needed infrastructure improvements and better water management in the rapidly developing areas of Travis County. However, some local residents and community advocates express concerns about the potential for abuse of eminent domain rights and the financial burden it may impose on property owners. The sentiments reflect a balance between the need for improved services and the rights of individuals regarding property acquisition and taxation.

Contention

Notable points of contention include the limited eminent domain powers granted to the district, which some fear may lead to unanticipated property losses and increased government encroachment. Additionally, the authorization to impose taxes and fees without direct voter approval raises concerns among critics about the transparency and accountability of local governance. The ongoing discussions highlight the need to carefully monitor the district's activities to ensure that community interests are adequately represented and protected.

Texas Constitutional Statutes Affected

Water Code

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

• Chapter 54. Municipal Utility Districts
  • Section: 016
  • Section: New Section
  • Section: 601
  • Section: 602