House Bill No. 2626 aims to establish the Central Texas Water Alliance as a regional water authority to enhance water management and resource allocation in Central Texas. The bill introduces Chapter 11020 to the Special District Local Laws Code, detailing the governance structure, operational framework, and definitions related to the alliance. Key provisions include the authority to issue bonds, the power of eminent domain, and the ability to impose fees. The initial sponsors of the alliance are identified, and the bill outlines the process for adding or removing sponsors, as well as the governance structure, which includes a board of directors with specific appointment, term, and removal procedures.

The bill also includes significant amendments to the governance and operational structure, such as capping the number of consecutive terms a director can serve at five and clarifying the removal process for directors. It grants the alliance broad powers to manage water resources, including the ability to construct facilities and implement conservation plans, while explicitly prohibiting the use of eminent domain for groundwater rights. Financial provisions allow the alliance to issue revenue bonds without an election and establish rates and fees for services. A notable insertion in the bill is the provision that limits the alliance's power of eminent domain, ensuring accountability and financial sustainability. The bill will take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if not passed by that threshold.

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