H.B. No. 304
 
 
 
 
AN ACT
  relating to the governance and operation of municipal management
  districts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 375.022(b), Local Government Code, is
  amended to read as follows:
         (b)  The petition must be signed by the owners of a majority
  of the assessed value of the real property in the proposed district
  that would be subject to assessment by the district, according to
  the most recent certified county property tax rolls.
         SECTION 2.  Section 375.063, Local Government Code, is
  amended to read as follows:
         Sec. 375.063.  QUALIFICATIONS OF DIRECTOR. To be qualified
  to serve as a director, a person must be at least 18 years old and:
               (1)  [a resident of the district;
               [(2)]  an owner of property in the district;
               (2) [(3)]  an owner of stock, whether beneficial or
  otherwise, of a corporate owner of property in the district;
               (3) [(4)]  an owner of a beneficial interest in a trust
  that owns property in the district; or
               (4)  [(5)]  an agent, employee, or tenant of a person
  covered by Subdivision (1), (2), or (3)[, or (4)].
         SECTION 3.  Sections 375.064(a), (b), and (c), Local
  Government Code, are amended to read as follows:
         (a)  The initial and each succeeding board of directors
  shall, and the owners of a majority of the assessed value of
  property subject to assessment by the district may, recommend to
  the governing body of the municipality persons to serve on the
  succeeding board.
         (b)  After reviewing the recommendations, the governing body
  shall approve or disapprove the directors recommended under
  Subsection (a) [by the board].
         (c)  If the governing body is not satisfied with the
  recommendations submitted under Subsection (a) [by the board], the
  board, on the request of the governing body, shall submit to the
  governing body additional recommendations.
         SECTION 4.  Section 375.092(f), Local Government Code, is
  amended to read as follows:
         (f)  A district may acquire, construct, complete, develop,
  own, operate, and maintain permanent improvements and provide
  services that directly benefit property in the district, regardless
  of whether the improvements or services are located inside or [and]
  outside its boundaries.
         SECTION 5.  Section 375.114, Local Government Code, is
  amended to read as follows:
         Sec. 375.114.  PETITION REQUIRED.  The board may not finance
  improvement projects or services [and improvement projects] under
  this chapter unless a written petition has been filed with the board
  requesting those improvements or services signed by:
               (1)  the owners of a majority [50 percent or more] of
  the assessed value of the property in the district subject to
  assessment, according to the most recent certified county property
  tax rolls; or
               (2)  for a proposed assessment to be apportioned under
  Section 375.119(1), the owners of a majority [50 percent or more]
  of the surface area of the real property subject to assessment by
  the district, [excluding roads, streets, highways, and utility
  rights-of-way, other public areas, and any other property exempt
  from assessment under Section 375.162 or 375.163,] according to the
  most recent certified county property tax rolls.
         SECTION 6.  Section 375.243, Local Government Code, is
  amended to read as follows:
         Sec. 375.243.  PETITION REQUIRED FOR BOND ELECTION. The
  board may not call a bond election unless a written petition has
  been filed with the board requesting an election signed by the
  owners of a majority[:
               [(1)  50 percent or more] of the assessed value of the
  property subject to assessment or taxation by [in] the district as
  determined from the most recent certified county property tax
  rolls[; or
               [(2)     50 percent or more of the surface area of the
  district, excluding roads, streets, highways, utility
  rights-of-way, other public areas, and other property exempt from
  assessment under Sections 375.161, 375.163, and 375.164 as
  determined from the most recent certified county property tax
  rolls].
         SECTION 7.  Section 375.262, Local Government Code, is
  amended to read as follows:
         Sec. 375.262.  DISSOLUTION BY PETITION BY OWNERS. Except as
  limited by Section 375.264, the board shall dissolve the district
  on written petition filed with the board by the owners of at least
  two-thirds [:
               [(1)  75 percent or more] of the assessed value of the
  property subject to assessment or taxation by [in] the district
  based on the most recent certified county property tax rolls[; or
               [(2)     75 percent or more of the surface area of the
  district, excluding roads, streets, highways, utility
  rights-of-way, other public areas, and other property exempt from
  assessment under Sections 375.161, 375.163, and 375.164, according
  to the most recent certified county property tax rolls].
         SECTION 8.  Section 382.052(b), Local Government Code, is
  amended to read as follows:
         (b)  If the population of the district is more than 1,000, to
  be eligible to serve as a director, a person must be at least 18
  years old, reside in the district, and be:
               (1)  an owner of property in the district;
               (2)  an owner of stock, whether beneficial or
  otherwise, of a corporate owner of property in the district;
               (3)  an owner of a beneficial interest in a trust that
  owns property in the district; or
               (4)  an agent, employee, or tenant of a person covered
  by Subdivision (1), (2), or (3) [meet the qualifications of Section
  375.063].
         SECTION 9.  Section 3855.052(b), Special District Local Laws
  Code, is amended to read as follows:
         (b)  Section 375.063(2) [375.063(3)], Local Government Code,
  does not apply to the district.
         SECTION 10.  Section 3818.251, Special District Local Laws
  Code, is repealed.
         SECTION 11.  The change in law made by this Act to Section
  375.063, Local Government Code, does not affect the entitlement of
  a member serving on the board of directors of a district to which
  that section applies immediately before the effective date of this
  Act to continue to carry out the board's functions for the remainder
  of the member's term. The change in law applies only to a member
  appointed on or after the effective date of this Act.
         SECTION 12.  This Act takes effect September 1, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 304 was passed by the House on April
  9, 2019, by the following vote:  Yeas 142, Nays 6, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 304 was passed by the Senate on May
  21, 2019, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor