BILL ANALYSIS

H.B. 5681

By: Bell, Cecil

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that the Westwood Magnolia Parkway Improvement District frequently undertakes public infrastructure projects, primarily county roadway improvements, pursuant to coordination with Montgomery County, but does not currently possess express statutory authority to require utilities to relocate their facilities at the utility's expense. The bill author has also informed the committee that in these cases, utilities often seek reimbursement from the district, even where the improvements occur within public rights-of-way. The bill author has further informed the committee that, while Montgomery County has separately explored the use of county assistance districts to fund local improvements, the Westwood Magnolia Parkway Improvement District already possesses the infrastructure to manage similar operations through interlocal partnership without the additional administrative obligations that operating an assistance district could create. H.B. 5681 seeks to address these issues by authorizing the Westwood Magnolia Parkway Improvement District to require utilities to relocate facilities at the utility's expense to accommodate certain public improvements and to assist in the administration and operation of county assistance districts through interlocal agreements.

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. 5681 amends Chapter 323, Acts of the 78th Legislature, Regular Session, 2003, to require a utility operated by a corporation, governmental entity, or other person that owns, operates, or maintains a facility for the transportation, distribution, or delivery of water, gas, electricity, telecommunications, Internet service, or any other utility service to relocate, adjust, or remove the facility at the utility's expense if the relocation, adjustment, or removal is required to accommodate a project undertaken by the Westwood Magnolia Parkway Improvement District for the construction, expansion, maintenance, or improvement of a district or county roadway, drainage infrastructure, or other public improvement in the public right-of-way of a district or county road. The bill establishes that this requirement does not, as follows:

· limit the authority of the district and a utility to enter into an agreement for cost-sharing, alternative funding, or another arrangement related to the relocation of a facility; or

· apply to a utility facility located outside a public right-of-way, including a facility located within a private easement, unless otherwise agreed to by the district and utility.

H.B. 5681 requires the district to provide to the utility 30 days' written notice of such a required relocation, adjustment, or removal and requires the notice to specify the project scope, right-of-way limits, and expected timeline. The bill authorizes the district, if a utility does not relocate, adjust, or remove a facility in accordance with that notice, to undertake the relocation, adjustment, or removal of the facility and requires the utility to reimburse the district for the reasonable and actual costs incurred by the district in performing the work. If the utility does not reimburse those costs before the 60th day after the date the district submits a written request for payment, the utility must pay interest on the amount due at the rate specified by applicable Government Code provisions relating to interest on overdue payments as if the amount were overdue under a contract with a governmental entity.

H.B. 5681 establishes that the requirement for a utility to relocate, adjust, or remove a facility at the utility's expense in accordance with the bill's provisions applies unless an express provision in a contract between the district and the utility assigns financial responsibility for relocation costs to the district.

H.B. 5681 authorizes the Westwood Magnolia Parkway Improvement District and a local government to enter into an interlocal agreement to provide for the administration and operation of a county assistance district that is located in a county in which any part of the district is located and for which the commissioners court of the county serves as the governing body. The bill establishes that the county assistance district may be considered a municipality for this purpose.

EFFECTIVE DATE

September 1, 2025.