BILL ANALYSIS

C.S.H.B. 5680

By: Holt

Intergovernmental Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that an area located within Liberty County would benefit from the creation of a management district. C.S.H.B. 5680 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. 5680 amends the Special District Local Laws Code to create the Bayou Belle Municipal Management District No. 1 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. 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 provides for the district's authority to exercise the power of eminent domain, contingent on the bill receiving a two-thirds vote of all the members elected to each house. If the bill does not receive such a vote, the district is expressly prohibited from exercising that power.

C.S.H.B. 5680 establishes that all applicable requirements relating to the following have been fulfilled and accomplished with respect to the bill:

· the legal notice of intention to introduce;

· governor action;

· Texas Commission on Environmental Quality recommendations; and

· the state constitution and laws and legislative rules and procedures.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 5680 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.

The introduced required the dissolution of the district on petition by the owners of at least two‑thirds of the assessed value of the property subject to assessment by the district or at least two-thirds of the surface area of the district, with certain property excluded. The substitute changes both of those thresholds from at least two-thirds to a majority.