S.B. No. 3051 proposes the creation of the Grassland Municipal Utility District No. 1 in Collin County, Texas, which will be governed by a board of five elected directors serving staggered four-year terms. The district will have limited powers, including the ability to exercise eminent domain, issue bonds, and impose assessments, fees, and taxes. A confirmation election is required to validate the district's establishment and elect permanent directors, contingent upon local municipalities' consent and contracts for essential services. The bill also details the district's authority to manage municipal utility functions, such as road design and maintenance, while imposing restrictions on the use of ad valorem taxes for these projects.

Notably, the bill introduces new legal language to the Special District Local Laws Code by adding Section 8021A.0307, which prohibits the district from exercising eminent domain unless a two-thirds vote is achieved in both legislative houses. The bill also confirms that all necessary legal notices have been published and that recommendations from the Texas Commission on Environmental Quality have been received. The legislation will take effect immediately upon securing the required two-thirds vote; otherwise, it will become effective on September 1, 2025, ensuring compliance with constitutional requirements for notice and passage.

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