BILL ANALYSIS

Senate Research Center	H.B. 5674
89R10555 SCF-F	By: Wilson (Flores)
	Local Government
	5/19/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The bill author has informed the committee of the need for a municipal utility district to be created in Williamson County for the benefit of certain undeveloped land. H.B. 5674 seeks to provide for the creation of the River Ranch Municipal Utility District No. 1. 

H.B. 5674 amends current law relating to the creation of the River Ranch Municipal Utility District No. 1, 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 8004A, as follows:

CHAPTER 8004A. RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 1

Sets forth standard language for the creation of the River Ranch Municipal Utility District No. 1 (district). Sets forth standards, procedures, requirements, and criteria for:

General provisions, creation, and approval of the district (Sections 8004A.0101- 8004A.0106);

Size, composition, election, and terms of the board of directors of the district (Sections 8004A.0201-8004A.0202);

Powers and duties of the district (Sections 8004A.0301-8004A.0306); and

General financial provisions and authority to impose a tax and to issue bonds and obligations for the district (Sections 8004A.0401-8004A.0503).

SECTION 2. Sets forth the initial boundaries of 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) Provides that, if this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C (Powers and Duties), Chapter 8004A, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8004A.0307, as follows:

Sec. 8004A.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 to enact a certain 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, 2025.