Senate Bill No. 3036 establishes the Montgomery County Municipal Utility District No. 258, granting it limited powers of eminent domain, the ability to issue bonds, and the authority to impose assessments, fees, and taxes. The bill introduces Chapter 8003A 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. It requires temporary directors to hold an election to confirm the district's creation and elect permanent directors, contingent upon obtaining consent from relevant municipalities. The district will have the power to design, construct, and maintain road projects, with financial provisions that necessitate voter approval before imposing ad valorem taxes or issuing bonds.

The bill also includes a legal description of two tracts of land totaling 416.63 acres in Montgomery County, Texas, with detailed boundaries and measurements. Notably, it introduces a new provision under Section 8003A.0307, which explicitly states that the district may not exercise the power of eminent domain, thereby clarifying limitations on its authority regarding property acquisition. The bill outlines procedural requirements for its introduction and passage, stipulating that it will take effect immediately if it receives a two-thirds vote from both houses; otherwise, it will take effect on September 1, 2025.

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