H.B. No. 5670 establishes the Montgomery County Municipal Utility District No. 259, governed by a board of five elected directors serving staggered four-year terms. A temporary board will oversee the district until permanent directors are elected, and the creation of the district requires consent from local municipalities. The bill outlines the district's powers, including the ability to issue bonds, impose assessments, and undertake road projects, while specifying that voter approval is necessary for ad valorem taxes and certain bonds. The district's initial territory encompasses approximately 342.736 acres in Montgomery County.
A significant provision of the bill is the introduction of a new section to the Special District Local Laws Code, specifically Section 8012A.0307, which explicitly states that the district may not exercise the power of eminent domain. This clause aims to clarify the limitations on the district's authority regarding property acquisition and address concerns about property rights. The bill is set to take effect on September 1, 2025, and has garnered substantial legislative support, passing with votes of 81-47 in the House and 28-3 in the Senate.
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