BILL ANALYSIS

 

 

Senate Research Center

C.S.H.B. 5376

88R31264 MCF-F

By: Stucky (Parker)

 

Local Government

 

5/20/2023

 

Committee Report (Substituted)

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

H.B. 5376 would create the Tabor Ranch Municipal Management District (district), covering approximately 599 acres in the extraterritorial jurisdiction of the City of Denton (city). The district and city are in the Dallas-Fort Worth Metroplex, where homes are in high demand. The district property is in an area that would benefit from mixed-use and residential development, but does not have sufficient water, sewer, roads, or storm drainage to support development, and there are no immediate municipal plans to provide such improvements or services. Accordingly, the district would provide a financing mechanism for the developer to provide these improvements. 

 

The legislation is based upon and primarily adheres to the municipal management district (MMD) template, with the following additions:

 

 

(Original Author's/Sponsor's Statement of Intent)

 

C.S.H.B. 5376 amends current law relating to the creation of the Tabor Ranch Municipal Management District, provides authority to issue bonds, provides authority to impose assessments, fees, and taxes, and grants a limited power of eminent domain.

 

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 4000, as follows:

 

CHAPTER 4000. TABOR RANCH MUNICIPAL MANAGEMENT DISTRICT

 

Sets forth language for the creation of the Tabor Ranch Municipal Management District (district). Sets forth standards, procedures, requirements, and criteria for:

 

Creation, purpose, and approval of the district (Sections 4000.0101-4000.0109);

 

Size, composition, appointment, compensation, and terms of the board of directors of the district (board), including the naming of the initial directors (Sections 4000.0201-4000.0203);

 

Powers and duties of the district (Sections 4000.0301-4000.0312);

 

General financial provisions and authority to impose assessments and taxes and to issue bonds and obligations for the district (Sections 4000.0401-4000.0506); and

 

Dissolution of the district by the board (Sections 4000.0901).

 

Authorizes the district to exercise the power of eminent domain in the manner provided by Section 49.222 (Eminent Domain), Water Code.

 

SECTION 2. Sets forth the initial boundaries for 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. (a) Provides that Section 4000.0312, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house.

 

(b) Amends Subchapter C, Chapter 4000, Special District Local Laws Code, as added by Section 1 of this Act, if this Act does not receive a two-thirds vote of all the members elected to each house, by adding Section 4000.0312, as follows:

 

Sec. 4000.0312. NO EMINENT DOMAIN POWER. Prohibits the district from exercising the power of eminent domain.

 

SECTION 5. Effective date: upon passage or September 1, 2023.