Texas House Bill HB5398

Texas 2023 - 88th Regular

• Filed: 4/20/23
• Out of House Committee: 5/5/23
• Voted on by House: 5/9/23
• Out of Senate Committee: 5/18/23
• Voted on by Senate: 5/21/23
• Governor Action: 6/13/23

Caption

Relating to the creation of the West Lake Ranch Municipal Management District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

The creation of the West Lake Ranch Municipal Management District is anticipated to have significant implications for local governance and state laws regarding municipal management. By granting this district the ability to impose assessments and issue bonds, the bill enhances the capabilities of local authorities to finance improvements and maintenance of public infrastructure without cumbersome state approvals. This autonomy could lead to more effective local responses to community needs, particularly in areas like transportation, housing, and economic development.

Summary

House Bill 5398 establishes the West Lake Ranch Municipal Management District, encompassing approximately 3,598 acres in the extraterritorial jurisdiction of Corsicana. The bill provides the district with the authority to impose assessments, fees, and taxes, as well as to issue bonds to support its operational funding. The establishment of such a district aims to enhance local governance over infrastructure and community services, fostering economic growth and facilitating community development initiatives.

Sentiment

The sentiment surrounding HB 5398 appeared to be largely favorable among proponents, who believe the bill will provide much-needed local control and enhance economic prospects for the Corsicana area. Supporters, including Representative Cody Harrison and Senator Hall, articulated strong arguments for the district's potential benefits. However, there were concerns among some stakeholders regarding the implications of additional fees and taxes on residents. The overall sentiment reflected a commitment to enhancing local governance while balancing the financial responsibilities that may accompany such powers.

Contention

Notable points of contention in the discussions included the district's authority to impose assessments and the limits on taxation, which some critics fear may burden residents. While proponents stressed the importance of local governance and development, opponents raised concerns about the potential for mismanagement or overreach by the district's governance structure. The bill attempts to address these issues by ensuring that local services are supplementing, rather than supplanting, existing county or city services.

Texas Constitutional Statutes Affected

Special District Local Laws Code

• Chapter 3942. West Lake Ranch Municipal Management District
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: New Section
  • Section: New Section
  • Section: 222
  • Section: 222
  • Section: New Section

• Chapter 54. Municipal Utility Districts
  • Section: New Section
  • 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: 161
  • Section: 243
  • Section: 161
  • Section: 243
  • Section: 161
  • Section: 243

• Chapter 380. Miscellaneous Provisions Relating To Municipal Planning And Development
  • Section: New Section
  • Section: New Section
  • Section: New Section

Government Code

• Chapter 1509. Obligations For Other Municipal Purposes
  • Section: New Section
  • Section: New Section
  • Section: New Section

Tax Code

• Chapter 311. Tax Increment Financing Act
  • Section: New Section
  • Section: New Section

• Chapter 312. Property Redevelopment And Tax Abatement Act
  • Section: New Section
  • Section: New Section