Texas House Bill HB5686

Texas 2025 - 89th Regular

• Filed: 4/23/25
• Out of House Committee: 5/7/25
• Voted on by House: 5/15/25
• Out of Senate Committee: 5/20/25
• Voted on by Senate: 5/25/25
• Governor Action: 6/20/25

Caption

Relating to the creation of the Montgomery County Management District No. 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The creation of Montgomery County Management District No. 3 is designed to supplement existing county and city services, rather than replace them. It aims to provide a structured approach to managing economic development and public services in a manner tailored to the needs of the district. The district is empowered to engage in initiatives that enhance the quality of life and the local economy, potentially making Montgomery County a more attractive place for business and community development.

Summary

House Bill 5686 establishes the Montgomery County Management District No. 3, providing authority for the district to issue bonds and impose assessments, fees, and taxes. This bill is significant as it creates a special district to promote various aspects of local economic growth including commerce, transportation, housing, and tourism, intended to enhance the public welfare within the region. Moreover, the legislation allows for the creation of defined areas within the district to manage property tax exemptions and revenue more effectively.

Sentiment

The sentiment around HB 5686 appears to be generally positive among proponents who view it as a necessary step for economic advancement in Montgomery County. Supporters argue that the bill will support local businesses and promote infrastructure improvements. However, there are concerns from some community representatives about adequate oversight and ensuring the district operates transparently and in the best interest of local residents.

Contention

Notable points of contention include the potential for increased taxation and assessments on property owners within the district, which some critics argue could be burdensome. Additionally, there are questions regarding the impact of the district's establishment on local governance and the extent of authority it holds compared to existing municipal structures. The bill mandates various processes for financial management, including the need for voter approval for significant taxes and bonds, thus adding a layer of democratic oversight intended to address these concerns.

Texas Constitutional Statutes Affected

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: New Section
  • Section: New Section
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• Chapter 54. Municipal Utility Districts
  • Section: New Section
  • Section: New Section
  • Section: New Section

Local Government Code

• Chapter 375. Municipal Management Districts In General
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

Tax Code

• Chapter 321. Municipal Sales And Use Tax Act
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

Transportation Code

• Chapter 431. Texas Transportation Corporation Act
  • Section: New Section