The bill establishes the Travis County Municipal Utility District No. 40, granting it limited powers such as the ability to issue bonds, impose assessments, fees, and taxes, and design, construct, and maintain road projects. It introduces new legal language to the Special District Local Laws Code by adding Chapter 8014A, which details the governance structure of the district, including a board of five elected directors and the procedures for confirming the district's creation and electing permanent directors. Importantly, the bill requires temporary directors to obtain consent from relevant municipalities before holding elections.

A significant provision of the bill is the insertion of section 8014A.0306, which explicitly states that the district may not exercise the power of eminent domain, thereby clarifying the limitations on its authority regarding the taking of private property. The bill also outlines procedural requirements for its passage, necessitating a two-thirds vote from both houses of the legislature for immediate effect; otherwise, it will take effect on September 1, 2025. Additionally, it confirms compliance with legal notices and recommendations from the Texas Commission on Environmental Quality, ensuring that all legislative procedures have been properly followed.

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