BILL ANALYSIS

C.S.H.B. 5337

By: Metcalf

Land & Resource Management

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been suggested that undeveloped land located within Montgomery County would benefit from the creation of a municipal utility district. C.S.H.B. 5337 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

C.S.H.B. 5337 amends the Special District Local Laws Code to create the Montgomery County Municipal Utility District No. 204, subject to municipal consent and voter approval at a confirmation election. The bill specifies the temporary board of directors, grants the district the power to undertake certain road projects and provides for the division of the district. 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.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 5337 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced provided for the appointment of the district's temporary directors after the submission of a petition to the Texas Commission on Environmental Quality by property owners in the district, the substitute instead specifies the temporary directors by name and does not provide for that petition process.