BILL ANALYSIS

Senate Research Center	H.B. 5671
89R10718 SCR-D	By: Kerwin (King)
	Local Government
	5/21/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The bill author has informed the committee that the Johnson County Special Utility District is one of the state's largest special utility districts, located in one of the state's fastest-growing counties. The bill author has further informed the committee that current requirements imposed on the district have resulted in wasteful delays to development projects. H.B. 5671 seeks to address this issue by updating and streamlining provisions relating to the Johnson County Special Utility District. 

H.B. 5671 amends current law relating to the election of directors for and the authority to issue bonds of the Johnson County Special Utility District.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of directors of the district in SECTION 1 (Section 7216.053, Special District Local Laws Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter B, Chapter 7216, Special District Local Laws Code, by adding Sections 7216.052 and 7216.053, as follows:

Sec. 7216.052. DIRECTOR ELIGIBILITY. Requires a person, to be eligible to be listed on the ballot as a candidate for or to serve as a member of the board of directors of the Johnson County Special Utility District (director; board; district), to be a qualified voter, a retail water or sewer service customer of the district, and an owner of land receiving services from the district or a beneficial interest in a trust that owns land receiving services from the district.

Sec. 7216.053. ELECTION OF DIRECTORS FROM SINGLE-MEMBER DISTRICTS. (a) Authorizes the board by rule to provide for the election of some or all of the directors from single-member districts.

(b) Requires a person, in addition to requirements of Section 7216.052, if the board provides for the election of some or all of the directors from single-member districts, to be eligible to be listed on the ballot as a candidate for or to serve as a director from a single-member district, to be a resident of that district.

SECTION 2. Amends Section 7216.101, Special District Local Laws Code, as follows:

Sec. 7216.101. SPECIAL UTILITY DISTRICT POWERS. Deletes existing text creating an exception under Section 7216.102 (Limitation of Certain Powers).

SECTION 3. Amends Subchapter D, Chapter 7216, Special District Local Laws Code, by adding Section 7216.152, as follows:

Sec. 7216.152. AUTHORITY TO ISSUE BONDS. (a) Provides that the district has the rights, powers, duties, and obligations of an issuer under Chapter 1371 (Obligations For Certain Public Improvements), Government Code.

(b) Provides that Sections 49.181 (Authority of Commission Over Issuance of District Bonds) and 49.182 (Commission Supervision of Projects and Improvements), Water Code, do not apply to the district.

SECTION 4. Repealer: Section 7216.102 (Limitation of Certain Powers), Special District Local Laws Code

SECTION 5. 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 6. Effective date: upon passage of September 1, 2025.