BILL ANALYSIS

Senate Research Center	H.B. 5414
88R16498 SCP-F	By: Spiller (Springer)
	Local Government
	5/17/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 5414 creates Mountain Springs Municipal Utility District of Cooke County (district). The district will encompass approximately 735 acres of land located within Cooke County, Texas. H.B. 5414  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. H.B. 5414  follows the template in all regards, except that it provides the district with the authority to divide into two or more districts. Division powers are requested so that the district can divide to provide better, more individualized services to the property if deemed necessary and to accommodate changes in development plans. 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.

H.B. 5414 amends current law relating to the creation of the Mountain Springs Municipal Utility District of Cooke County, grants a limited power of eminent domain, provides authority to issue bonds, and provides authority to impose 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 7982A, as follows:

CHAPTER 7982A. MOUNTAIN SPRINGS MUNICIPAL UTILITY DISTRICT OF

COOKE COUNTY

Sets forth language for the creation of the Mountain Springs Municipal Utility District of Cooke County (district). Sets forth standards, procedures, requirements, and criteria for:

Creation, purpose, and approval of the district (Sections 7982A.0101-7982A.0106);

Size, composition, election, and terms of the board of directors of the district (Sections 7982A.0201-7982A.0202);

Powers and duties of the district (Sections 7982A.0301-7982A.0306); and

General financial provisions and authority to impose a tax and to issue bonds and obligations for the district (Sections 7982A.0401-7982A.0503).

SECTION 2. Sets forth the initial boundaries for 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) Amends Subchapter C, Chapter 7982A, 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 7982A.0307, as follows:

Sec. 7982A.0307. 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 10, 2020, 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: September 1, 2023.