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HB 5688

Relating to the creation of the San Benito Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

89th Legislature (2025) Introduced by Adam Hinojosa and 1 co-sponsor

Texas creates San Benito Municipal Utility District No. 1 with powers to seize land, issue bonds, and levy taxes for water and utility infrastructure projects.

Effective on 9/1/25
#sanbenitomunicipalutilitydistrictno.1(dh43g) #specialdistricts&authorities--municipalutilitydistricts(i0009) #specialdistricts&authorities--water&utility(i0755)
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Bill Summary · HB 5688

Legislative bill overview

HB 5688 creates the San Benito Municipal Utility District No. 1, a new special-purpose government entity in Texas. The bill grants this district limited eminent domain authority, the power to issue bonds for infrastructure financing, and the ability to impose assessments, fees, and taxes on property owners within its jurisdiction.

Why is this important

Municipal utility districts provide essential water, wastewater, and drainage services to developing areas. This new district will have authority to acquire land, finance major infrastructure projects, and recover costs from residents—decisions that directly affect property taxes and service availability in San Benito.

Potential points of contention

  • Eminent domain scope: The "limited" eminent domain power's exact boundaries are unclear; residents may face property takings for utility infrastructure without full understanding of protections
  • Tax and fee authority: Residents become subject to new assessments and taxes; the bill doesn't specify rate-setting caps or voter approval requirements for future increases
  • Governance structure: Details about district board composition, election procedures, and public accountability mechanisms are not evident in the bill summary

Compiled from official sources — confirm details with the bill’s official record.

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