BILL ANALYSIS

H.B. 5320

By: Metcalf

Land & Resource Management

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been suggested that an area located within Montgomery County would benefit from the creation of a utility district. H.B. 5320 seeks to provide for the creation of such a district.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 5320 amends the Special District Local Laws Code to create the Montgomery County Municipal Utility District No. 227, subject to municipal consent and voter approval at a confirmation election.  The bill grants the district the power to undertake certain road projects and provides for the division of the district to create one or more new districts. The bill authorizes the district, subject to certain requirements, to  issue obligations and impose property, operation and maintenance, and contract taxes. The bill 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.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.