H.B. No. 5688 establishes the San Benito Municipal Utility District No. 1, granting it limited powers such as the ability to issue bonds, impose assessments, fees, and taxes, and exercise eminent domain. The bill introduces Chapter 8028A to the Special District Local Laws Code, detailing the governance structure of the district, which will be overseen by a board of three elected directors serving staggered four-year terms. The district is created to serve a public purpose, specifically to facilitate the construction and maintenance of roads and related improvements, and requires consent from local municipalities before holding elections for permanent directors.

The bill also includes provisions for the district's financial operations, allowing it to issue bonds and impose taxes with voter approval for certain actions. A significant aspect of the bill is the introduction of a new section, 8028A.0307, which explicitly prohibits the district from exercising the power of eminent domain unless a two-thirds vote is achieved in both houses of the legislature. If the bill does not receive this majority, it will take effect on September 1, 2025, rather than immediately. The House passed the bill with a vote of 81 in favor and 47 against, while the Senate approved it with a vote of 27 to 4.

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