BILL ANALYSIS

Senate Research Center	H.B. 5304
88R11387 LRM-F	By: Wilson (Schwertner)
	Local Government
	5/15/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 5304 amends the Special District Local Laws Code to create the Williamson County Municipal Utility District No. 46, subject to municipal consent and voter approval at a confirmation election. H.B. 5304 grants the district the power to undertake certain road projects. H.B. 5304 authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes. H.B. 5304 expressly prohibits the district from exercising the power of eminent domain if the bill does not receive a two-thirds vote of all the members elected to each house.

H.B. 5304 amends current law relating to the creation of the Williamson County Municipal Utility District No. 46, 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 7971A, as follows:

CHAPTER 7971A.� WILLIAMSON COUNTY MUNICIPAL UTILITY DISTRICT NO. 46

Sets forth the required language for the creation of the Williamson County Municipal Utility District No. 46 (district) in Williamson County. Sets forth standards, procedures, requirements, and criteria for:

Creation, approval, and purpose of the district (Sections 7971A.0101-7971A.0106);

Size, election, and terms of board of directors and appointment of temporary directors (Sections 7971A.0201-7971A.0202);

Powers and duties of the district (Sections 7971A.0301-7971A.0305); and

General financial provisions, including authority to impose taxes or issue bonds and obligations for the district (Sections 7971A.0401-7971A.0503).

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

SECTION 3. Provides that all requirements of the constitution and the 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) Amends Subchapter C, Section 7971A, Special District Local Laws Code, if this Act does not receive a two-thirds vote of all the members elected to each house, by adding Section 7971A.0306, as added by Section 1 of this Act, as follows:

Sec. 7971A.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) (relating to authorizing the legislature, on or after January 1, 2010, to enact a general, local, or special law granting the power of eminent domain to an entity only on a two-thirds vote of all the members elected to each house), Article I (Bill of Rights), Texas Constitution.

SECTION 5. Effective date: upon passage or September 1, 2023.