BILL ANALYSIS

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Continuing growth in Montgomery County requires the need to provide certain improvements, projects, and services for public use and benefit, such as recreational facilities, road projects, and public transit. H.B. 5375 creates a municipal management district under Chapter 375, Local Government Code, to be known as Montgomery County Management District No. 2 (district).  The district will encompass 57 acres of land in the extraterritorial jurisdiction of the City of Conroe in Montgomery County, Texas.  The bill provides the district with the authority to levy an assessment, impose a tax, and issue bonds, in order to administer and provide funding for economic development projects and services to undeveloped property in Montgomery County, Texas.  The bill provides for, among other provisions, certain agreements with other entities, the annexation or exclusion of district land, applicability of state law to district contracts, liens for district assessments, and dissolution of the district. The district's powers and duties include, subject to certain requirements, the authorization to issue obligations and impose assessments, certain fees, property, maintenance and operation, and contract taxes. A municipality is not required to pay district obligations. The district is prohibited from exercising the power of eminent domain.

H.B. 5375 amends current law relating to the creation of the Montgomery County Management District No. 2, provides authority to issue bonds, and provides authority to impose assessments, fees, and taxes.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle C, Title 4, Special District Local Laws Code, by adding Chapter 3800, as follows:

CHAPTER 3800. MONTGOMERY COUNTY MANAGEMENT DISTRICT NO. 2

Sets forth language for the creation of the Montgomery County Management District No. 2 (district). Sets forth standards, procedures, requirements, and criteria for:

Creation, purpose, and approval of the district (Sections 3800.0101-3800.0108);

Size, composition, compensation, election, and terms of the board of directors of the district (board) (Sections 3800.0201-3800.0203);

Powers and duties of the district (Sections 3800.0301-3800.0309);

General financial provisions and authority to impose assessments and taxes and to issue bonds and obligations for the district (Sections 3800.0401-3800.0607); and

Dissolution of the district by the board (Section 3800.0901).

Prohibits the district from exercising the power of eminent domain.

SECTION 2. Sets forth the initial boundaries of the district.

SECTION 3. Provides that all requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 4. Effective date: upon passage or September 1, 2023.