BILL ANALYSIS

H.B. 5671

By: Kerwin

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

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.

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. 5671 amends the Special District Local Laws Code to establish as eligibility requirements that a person must meet to be listed on the ballot as a candidate for or to serve as a director of the board of directors of the Johnson County Special Utility District that the person is 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. The bill authorizes the board of directors by rule to provide for the election of some or all of the directors from single-member districts. If the board provides for the election of some or all of the directors from single-member districts, the bill requires a person to be a resident of a single-member district to be eligible to be listed on the ballot as a candidate for or to serve as a director from that district, in addition to the eligibility requirements established by the bill.

H.B. 5671 establishes that the Johnson County Special Utility District has the rights, powers, duties, and obligations to issue, sell, and deliver bonds in the manner of an issuer under provisions relating to obligations for certain public improvements. Water Code provisions relating to the authority of commission over issuance of district bonds and commission supervision of projects and improvements do not apply to the district.

H.B. 5671 repeals Section 7216.102, Special District Local Laws Code, which limited the exercise of the district's powers.

H.B. 5671 establishes that all applicable requirements relating to the following have been fulfilled and accomplished with respect to the bill:

· the legal notice of intention to introduce;

· governor action;

· Texas Commission on Environmental Quality recommendations; and

· the state constitution and laws and legislative rules and procedures.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.