HB5680

HB5680 creates Bayou Belle Municipal Management District No. 1 for a described 605.3082-acre tract in Liberty County. It can finance and provide public improvements and services, including water, wastewater, drainage, roads, recreation and parking. It can contract for law enforcement, form a nonprofit corporation to help deliver projects, and support economic development through loans, grants, personnel and services. District services must supplement—not replace—the county’s existing services. The area is eligible for tax-increment and tax-abatement zones, but the act does not itself establish either zone.

The initial directors are Dez Carlson, Remard Mason and Kye Sampson, with terms ending June 1, 2027, and Anthony Hernandez and Kyle Clarke, with terms ending June 1, 2029. Thereafter, the five elected directors serve staggered four-year terms. Compensation is capped at $150 per board meeting and $7,200 per director per year, plus necessary and reasonable expense reimbursement.

Property taxes and property-tax-backed bonds require voter approval. The operating-tax rate cannot exceed the approved rate. The continuing tax for outstanding tax-backed bonds has no rate or amount limit specified in this act. Specified revenue- or contract-payment-backed bonds do not require a separate bond election. Applicable municipal consent is required before issuing bonds. Financing a service or improvement through assessments requires a petition signed by owners of a majority of assessed property value subject to assessment. Assessments can create personal liability and a property lien, subject to the specified priority for county, school and municipal property-tax liens.

The district may add or exclude land under the cited general laws. Division is permitted only when it has no outstanding bonded debt and is not imposing property taxes; newly divided districts cannot initially include land outside the act’s territory and need applicable voter financing approvals. Owners representing a majority of assessed property value subject to assessment, or a majority of the eligible surface area, may petition for dissolution. The board may also vote to dissolve, but outstanding debt, contractual payments and responsibility for public facilities must first be addressed.

The bill became law without the governor’s signature on June 20, 2025, effective September 1, 2025. It does not give the district eminent-domain power: the House concurrence vote of 90–47 fell below the two-thirds threshold, activating the prohibition instead of the conditional grant. Initial House passage was 84–47; Senate passage was 28–3. Sources: enrolled law and certified votes and official history and effective-date remarks.