SB3056

The act defines the original territory through two full survey descriptions, stating areas of 269.03 and 337.35 acres. The district supplements existing city and county services rather than replacing them. Its powers include infrastructure and services for water, wastewater, drainage, roads, recreation, parking and economic development. It may support authorized projects through a nonprofit corporation, public loans or grants, and contracts, including law-enforcement service contracts. These are powers to act, not proof that particular projects or contracts exist. Final law, sections 1–2.

Five elected directors serve staggered four-year terms. The initial directors are Tim McNutt, Buck Nguyen and Felix Wong, whose initial terms expire June 1, 2027, and Darrell Rogers and Damian Perez, whose initial terms expire June 1, 2029. Compensation is capped at $150 per meeting and $7,200 per director per year, apart from necessary and reasonable expense reimbursement. Final law, sections 4014.0201–.0203.

Voters must approve a property tax. The board can then set an operations-and-maintenance rate no higher than the approved ceiling. But the district may not issue bonds, notes or other obligations payable wholly or partly from property taxes. That prohibition distinguishes this district from districts authorized to issue property-tax-backed bonds; approval of an operating tax does not remove it. Final law, sections 4014.0501–.0503.

The district may borrow using authorized sources such as assessments, impact fees, revenue, contract payments and grants. Revenue-backed bonds and qualifying contract-payment bonds can be issued without a bond election, subject to the referenced Water Code requirements. Before its first bond issuance, political subdivisions whose consent is required by applicable general law must consent to district creation and inclusion of land. The act also allows a special assessment-backed financing route for improvements that will be transferred to, or operated and maintained by, a municipality, county or retail utility under a prior agreement. Final law, sections 4014.0503–.0505.

Assessment financing requires a petition from owners of a majority of the assessed value of real property subject to assessment—not a majority of residents. Assessments and related charges can create personal obligations and property liens, with priority except for county, school-district and municipal property-tax liens. The act makes Local Government Code section 375.161 inapplicable. That section ordinarily protects specified residential properties from certain charges and requirements, but already has exceptions for qualifying taxes or assessments and payments for district services. That particular protection does not apply here; this is not a waiver of every other applicable exemption or procedure. Final law, sections 4014.0311 and .0401–.0402; Residential-exemption wording, section 8.

The district has no eminent-domain power—the power to compel a property sale for public use. The text’s proposed grant required two-thirds approval of all elected members of both chambers. The House voted 96–44, below the required 100, so the express no-eminent-domain alternative took effect instead. Final law, section 4 and certified votes; Effective-provision remarks.

The board can add or exclude land through referenced procedures and divide the district when it has no outstanding bonded debt. Unlike several other district acts, this division clause does not also require the district to be free of operating property taxes. New districts must hold the required election before imposing a maintenance tax. Dissolution can follow a board majority or a petition based on two-thirds of assessed property value or qualifying land area, subject to settling or making the required arrangements for debt, payment contracts and public facilities. Final law, sections 4014.0309–.0310 and .0901.

The introduced, Senate-report, engrossed, House-report and enrolled versions have identical operative provisions, including the boundary descriptions. No floor amendments or conference version are listed. The prohibition on property-tax-backed debt was part of the bill throughout; the no-eminent-domain outcome results from its vote-triggered clause. Introduced text; Version history; Amendment index; Final law.

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

The district can coordinate and fund improvements that may benefit owners, residents and businesses, but future assessments, operating taxes, fees and other financing charges may create costs for them. The ban on property-tax-backed obligations does not mean the district is barred from every tax or every form of debt. The act does not establish that a tax election, borrowing or construction has occurred. Final law.

The sole posted fiscal note anticipates no significant state impact, with costs absorbed through existing resources, and no fiscal impact on other local governments. District-level effects are indeterminate because future financing and charges are unknown. The note’s reference to possible eminent domain reflects the proposal’s contingency, not a power that took effect. It does not forecast an individual property owner’s costs. Fiscal note; Final law, section 4.