BILL ANALYSIS

Senate Research Center	S.B. 2502
	By: Flores
	Intergovernmental Relations
	5/29/2019
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Town of Pecos City is located in the heart of one of the most productive areas of the Permian Basin. To accommodate the growing population due to the Delaware Basin oil and gas boom, the demand for housing, roads, and other improvements must be met.

S.B. 2502 is a local bill that seeks to create the West Pecos Management District, a municipal management district operating pursuant to Chapter 375, Local Government Code, in the corporate limits of the Town of Pecos City in Reeves County. Made up of 1,100 acres, this district will construct and finance infrastructure improvements such as roads, parks, and other facilities needed to address critical housing and other community needs of the Pecos area. The proposed legislation would grant the West Pecos Management District powers and duties including, subject to certain requirements, the authorization to issue obligations and impose assessments, fees and taxes. S.B. 2502 also prohibits the district from exercising the power of eminent domain.

The creation of the district was initiated by the Town of Pecos City, which owns all of the land in the proposed district.

There is no known opposition to this legislation. (Original Author's/Sponsor's Statement of Intent)

S.B. 2502 amends current law relating to the creation of the West Pecos Management District, 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 3962, as follows:

CHAPTER 3962. WEST PECOS MANAGEMENT DISTRICT

Sets forth standard language for the creation of the West Pecos Management District (district) in the City of Pecos. Sets forth standards, requirements, procedures, and criteria for:

Creation, approval, purpose, and territory of the district; and eligibility for inclusion in special zones (Sections 3962.0101�3962.0107);

Size, composition, appointment, and terms of the board of directors of the district, including provisions related to initial directors (Sections 3962.0201�3962.0204);

Powers and duties of the district (Sections 3962.0301�3962.0311);

Assessment provisions (Sections 3962.0401�3962.0402);

Authority to impose taxes and to issue bonds and obligations for the district (Sections 3962.0501�3962.0506);

Power to establish defined areas or designate property (Sections 3962.0601�3962.0605); and

Dissolution of the district (Section 3962.0901).

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 the 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, 2019.