BILL ANALYSIS

C.S.H.B. 5361

By: Stucky

Urban Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been suggested that an area within Denton County would benefit from the creation of a management district. C.S.H.B. 5361 seeks to provide for the creation of such a district.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 5361 amends the Special District Local Laws Code to create the Denton County Municipal Management District No. 2 to provide certain improvements, projects, and services for public use and benefit. The bill provides for, among other provisions, the district's authority to add or exclude land, the division of the district, and the dissolution of the district, and establishes that provisions exempting certain property from taxation do not apply to the district. The district's powers and duties include, subject to certain requirements, the authority to issue obligations and impose assessments and property and operation and maintenance taxes. The bill expressly prohibits the district from exercising the power of eminent domain if the bill does not receive a two-thirds vote of all the members elected to each house.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 5361 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

While both the introduced and substitute authorize the district to issue certain obligations, the introduced specified that such issuance may be by public or private sale, whereas the substitute does not include that specification.

The substitute includes an authorization that did not appear in the introduced for the district board to dissolve the district at any time by majority vote. Whereas the introduced prohibited dissolution of the district if the district has any outstanding bonded or other indebtedness, the substitute prohibits dissolution only if the district has outstanding bonded indebtedness.

The substitute exempts the district from application of certain Local Government Code provisions relating to the dissolution of a management district, whereas the introduced did not exempt the district from those provisions.