S.B. No. 3038 proposes the establishment of the Fort Bend County Municipal Utility District No. 286, which will have limited powers including the ability to issue bonds, impose assessments, fees, and taxes, and exercise limited eminent domain. The bill adds Chapter 8017A to the Special District Local Laws Code, detailing the governance structure with a board of five elected directors, initially appointed by the Texas Commission on Environmental Quality. The district's primary purpose is to provide municipal utility services and infrastructure projects, such as road construction and maintenance, while requiring consent from the City of Rosenberg and a development agreement before proceeding with elections or bond issuance.

Importantly, the bill includes a new section, Section 8017A.0308, which explicitly states that the district may not exercise the power of eminent domain, thereby protecting landowners from potential property seizures. The bill outlines that procedural requirements, including legal notice publication and recommendations from the Texas Commission on Environmental Quality, have been met. The legislation will take effect immediately upon receiving a two-thirds vote from both houses; otherwise, it will become effective on September 1, 2025.

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