Texas House Bill HB5692

Texas 2025 - 89th Regular

• Filed: 4/28/25

Caption

Relating to the creation of the Palangana Energy District; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

This bill, if enacted, modifies existing regulations governing special districts in Texas, specifically by providing the Palangana Energy District with the authority to exercise limited eminent domain powers, primarily for purposes aligned with public utilities and infrastructure needs. It also allows the district to undertake initiatives that will potentially create jobs and boost commercial activity in the South Texas region. The formation of the district reflects a strategic attempt to consolidate regional energy development while ensuring environmental considerations are taken into account.

Summary

House Bill 5692, known as the Palangana Energy District Act, proposes the establishment of a special district in Duval County called the Palangana Energy District. The district aims to enhance energy security, promote economic development, and manage natural resources efficiently. Among its authorized functions, the district will have the capacity to impose taxes, levy assessments, and issue bonds to fund various infrastructure projects and services within its territory.

Contention

Notable points of contention regarding HB 5692 may emerge from the empowerment of the district to impose financial obligations on properties through assessments and taxes, which might face opposition from landowners concerned about increased financial burdens. Additionally, the district's ability to exercise eminent domain could lead to disputes over land use and property rights, particularly if land acquisition is deemed necessary for infrastructure improvements. Opponents may argue that such provisions could favor commercial enterprises at the expense of individual rights.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 321. Municipal Sales And Use Tax Act
  • Section: New Section

Water Code

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

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

Government Code

• Chapter 1371. Obligations For Certain Public Improvements
  • Section: New Section

Local Government Code

• Chapter 375. Municipal Management Districts In General
  • Section: 243
  • Section: New Section