BILL ANALYSIS

Senate Research Center	H.B. 5349
88R18855 MP-F	By: Kitzman (Kolkhorst)
	Local Government
	5/11/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 5349 creates the Austin County Municipal Utility District No. 4 (district) as a political subdivision of the State of Texas.  The district will construct and finance water, sewer, drainage, and road facilities to serve property within the district, which is located in the extraterritorial jurisdiction of the City of Sealy in Austin County.  The district will be a municipal utility district operating pursuant to Chapters 49 and 54, Water Code.

A special district is needed to finance and construct the infrastructure (water, sewer, drainage, and roads) necessary to promote the development of the area within the district.

Special districts are created for specific areas.  No special district currently serves the area proposed to be included in the district.

The owner of all of the land in the district supports the creation of the district.

There is no known opposition to this legislation.

H.B. 5349 amends current law relating to the creation of the Austin County Municipal Utility District No. 4, 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 7991A, as follows:

CHAPTER 7991A.� AUSTIN COUNTY MUNICIPAL UTILITY DISTRICT NO. 4

Sets forth standard language for the creation of the Austin County Municipal Utility District No. 4 (district). Sets forth standards, procedures, requirements, and criteria for:

Creation, purposes, and approval of the district (Sections 7991A.0101-7991A.0106);

Appointment of temporary directors, and election, size, and qualifications of the board of directors (Sections 7991A.0201-7991A.0202);

Powers and duties of the district (Sections 7991A.0301-7991A.0305); and

General financial provisions, including authority to impose taxes or issue bonds and obligations for the district (Sections 7991A.0401-7991A.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, Chapter 7991A, Special District Local Laws Code, as added by Section 1 of this Act, if this Act does not receive a two-thirds vote of all the members elected to each house, by adding Section 7991A.0306, as follows:

Sec. 7991A.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.

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