BILL ANALYSIS

Senate Research Center	S.B. 2205
87R8850 ANG-F	By: Springer
	Local Government
	4/26/2021
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 2205 creates Hillcrest North Municipal Utility District of Wise County (district). The district will encompass approximately 301 acres of land located within Wise County, Texas. The district is not located within the extraterritorial jurisdiction or corporate limits of any municipality.

S.B. 2205 is a standard template bill and provides for water, sewer, drainage, and road facilities (facilities), which need to be secured because the land to be located within the district will be developed for residential purposes. S.B. 2205 follows the template in all regards. The district is created under Water Code provisions applicable to all water districts and to municipal utility districts and under constitutional provisions relating to conservation and reclamation districts. The district will have standard road powers and must comply with all applicable road standards. The district will have the authority to issue tax-exempt bonds to purchase, acquire, or construct the facilities. It is also necessary to empower the district with authority to impose a tax and to grant the district a limited power of eminent domain. The bill provides for the creation, administration, powers, duties, operation, and financing of the district.

As proposed, S.B. 2205 amends current law relating to the creation of the Hillcrest North Municipal Utility District of Wise County, 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 8017, as follows:

CHAPTER 8017. HILLCREST NORTH MUNICIPAL UTILITY DISTRICT OF

WISE COUNTY

Sets forth standard language for the creation of the Hillcrest North Municipal Utility District of Wise County (district) in Wise County. Sets forth standards, procedures, requirements, and criteria for:

Creation and approval of and public purpose for the district, including composition of the initial district (Sections 8017.0101‑8017.0106);

Size, composition, and appointment the board of directors (Sections 8017.0201‑8017.0202);

Powers and duties of the district (Sections 8017.0301-8017.0305); and

General financial provisions and authority to impose a tax and issue bonds and obligations for the district (Sections 8017.0401-8017.0503).

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 8017, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8017.0306, as follows:

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Sec. 8017.0306. 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.