BILL ANALYSIS

Senate Research Center	H.B. 2235
87R10222 ANG-F	By: Wilson (Schwertner)
	Local Government
	5/20/2021
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 2235 creates the 7S Ranch Municipal Utility District (MUD). The land is located approximately 2.5 miles southwest of the City of Florence, adjacent to FM 970. The proposed district will encompass land in Williamson County.

The district will construct and finance water, sewer, drainage, road, and recreational facilities to serve the land within the district. Through bonding authority, the district will enhance the affordability of future homes within the district by allowing the costs of water, sewer, drainage, and road infrastructure to be allocated over the term of the bonds.

H.B. 2235 amends current law relating to the creation of the 7S Ranch Municipal Utility District, grants a limited power of eminent domain, provides authority to issue bonds, and provides authority to impose assessments, fees, and taxes.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 8267, as follows:

CHAPTER 8267. 7S RANCH MUNICIPAL UTILITY DISTRICT

Sets forth standard language for the creation of the 7S Ranch Municipal Utility District (district). Sets forth standards, procedures, requirements, and criteria for:

Creation and approval of and public purpose for the district (Sections 8267.0101‑8267.0106);

Size, composition, appointment, and compensation and reimbursement of expenses for the board of directors, including composition of the initial district (Sections 8267.0201-8267.0202);

Powers and duties of the district (Sections 8267.0301-8267.0306); and

General financial provisions and authority to impose a tax and issue bonds and obligations for the district (Sections 8267.0401-8267.0503).

SECTION 2. Sets forth the initial boundaries of the district.

SECTION 3. Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 4. (a) Provides that, if this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 8267, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8267.0307, as follows:

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Sec. 8267.0307. NO EMINENT DOMAIN POWER. Prohibits the district from exercising the power of eminent domain.

(b) Provides that this section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution.

SECTION 5. Effective date: upon passage or September 1, 2021.