4BILL ANALYSIS

Senate Research Center	H.B. 5694
89R21601 JTZ-F	By: Luther (Hughes)
	Local Government
	5/21/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The bill author has informed the committee that an area located within Fannin County would benefit from the creation of an improvement district. H.B. 5694 seeks to provide for the creation of such a district. 

H.B. 5694 amends current law relating to the creation of the Fannin County Improvement District No. 1, 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 4205, as follows:

CHAPTER 4205. FANNIN COUNTY IMPROVEMENT DISTRICT NO. 1

Sets forth standard language for the creation of the Fannin County Improvement District No. 1 (district) in Fannin County. Sets forth standards, procedures, requirements, and criteria for:

General provisions, including the nature of the district, public purpose of the district, and the initial district territory (Sections 4205.0101-4205.0108);

Size, compensation of the board of directors of the district, including provisions related to initial temporary directors (Sections 4205.0201-4205.0205);

Powers and duties of the district (Sections 4205.0301-4205.0310);

General financial provisions and authority to impose taxes and to issue bonds and obligations for the district (Sections 4205.0401-4205.0506); and

Dissolution of the district by the board of directors (Section 4205.0901).

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 the 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, 2025.