H.B. No. 5651 establishes the Montgomery County Water Control and Improvement District No. 7, granting it limited powers such as eminent domain, the ability to issue bonds, and the authority to impose assessments, fees, and taxes. The bill introduces new legal language by adding Chapter 9094 to Subtitle I, Title 6 of the Special District Local Laws Code, which outlines 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. The district is defined as a water control and improvement district under the Texas Constitution, with specific provisions for its initial territory and a requirement for municipal consent prior to elections.

Additionally, the bill details the district's powers and duties, including the design, construction, and maintenance of infrastructure while adhering to local regulations. It specifies financial provisions for issuing bonds and imposing taxes, requiring voter approval for certain actions, such as ad valorem taxes or bond issuance for road projects. A key provision is the insertion of Section 9094.0306, which states that the district may not exercise the power of eminent domain unless a two-thirds vote is obtained from all elected members in both houses. The bill will take effect immediately upon receiving the necessary vote or on September 1, 2025, if it does not.

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