The bill, H.B. No. 5670, proposes the creation of the Montgomery County Municipal Utility District No. 259, which will have the authority to issue bonds, impose fees, and levy taxes. The district is defined as a municipal utility district under the Texas Constitution and will be governed by a board of five elected directors. The bill outlines the process for the initial election of directors, the requirement for municipal consent before elections can be held, and the district's powers and duties, which include compliance with municipal ordinances and the ability to issue bonds for various purposes.

Additionally, the bill includes provisions regarding the district's financial operations, such as the ability to impose operation and maintenance taxes and the conditions under which bonds can be issued. Notably, if the bill does not receive a two-thirds vote in both houses, it includes a provision that prohibits the district from exercising the power of eminent domain. The act is set to take effect on September 1, 2025.

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