BILL ANALYSIS

Senate Research Center	S.B. 2594
88R15440 MCF-F	By: Nichols
	Local Government
	4/17/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Continuing growth in Liberty County requires the provision of certain improvements, projects, and services for public use and benefit, such as recreational facilities, road projects, and public transit. S.B. 2594 creates a municipal management district under Chapter 375, Local Government Code, to be known as Liberty County Management District No. 2 (district). The district will encompass 236 acres of land in the corporate limits of the City of Cleveland. 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 Liberty County. 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.

As proposed, S.B. 2594 amends current law relating to the creation of the Liberty 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 4002, as follows:

CHAPTER 4002. LIBERTY COUNTY MANAGEMENT DISTRICT NO. 2

Sets forth standard language for the creation of the Liberty County Management District No. 2 (district) in the City of Cleveland. Sets forth standards, procedures, requirements, and criteria for:

Creation, purpose, approval, and territory of the district (Sections 4002.0101-4002.0108);

Size, composition, appointment, compensation, and terms of the board of directors of the district, including the naming of the initial directors (Sections 4002.0201-4002.0203);

Powers and duties of the district (Sections 4002.0301-4002.0308); and

General financial provisions and authority to impose a tax and to issue bonds and obligations for the district (Sections 4002.0401-4002.0506);

Dissolution of the district (Section 4002.0901).

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.