H.B. No. 5651 establishes the Montgomery County Water Control and Improvement District No. 7, granting it the authority to exercise limited powers of eminent domain, issue bonds, and impose assessments, fees, and taxes. The bill introduces Chapter 9094 to the Special District Local Laws Code, which outlines the governance structure of the district, including a board of five elected directors serving staggered four-year terms. The creation of the district requires consent from municipalities within its boundaries and mandates an election to confirm its establishment and elect permanent directors. The district will manage water control and improvement projects, including the construction and maintenance of roads and storm drainage systems, with provisions for voter approval on certain financial decisions.

A key aspect of the bill is the insertion of a new section, 9094.0306, into the Special District Local Laws Code, which explicitly states that the district may not exercise the power of eminent domain unless a two-thirds vote from both houses of the legislature is obtained. If the necessary votes are not secured, the section will still be added but under different conditions. The bill also details the boundaries of the new district, ensures compliance with legal notice requirements, and mandates a review by the Texas Commission on Environmental Quality. The bill is set to take effect immediately upon receiving the necessary votes or on September 1, 2025, if it does not.

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