Texas 2025 - 89th Regular

Texas House Bill HB4078 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Leach H.B. No. 4078
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to public improvement districts located in certain
9	9	municipalities.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 372, Local Government Code, is amended
12	12	by adding Subchapter E to read as follows:
13	13	SUBCHAPTER E. DOWNTOWN IMPROVEMENT DISTRICTS IN CERTAIN
14	14	MUNICIPALITIES
15	15	Sec. 372.201. APPLICABILITY; CONTINUED SERVICES. (a) This
16	16	subchapter applies to a municipality with a population between
17	17	900,000 and 2,000,000, according to the most recent decennial
18	18	census that as of January 1, 2025 had created a public improvement
19	19	district located in the municipality's downtown area or central
20	20	business district and to a county in which such municipality is
21	21	located.
22	22	(b) This subchapter applies only to the largest public
23	23	improvement district located in a municipality's downtown area or
24	24	central business district that existed as of January 1, 2025.
25	25	(c) This subchapter may not be interpreted to relieve any
26	26	municipality or county from providing services to an area included
27	27	in a district or to release the municipality or county from the
28	28	obligation it has to provide municipal or county services to that
29	29	area. A public improvement district recognized under this
30	30	subchapter is intended to supplement and not supplant municipal and
31	31	county services in the area of the district.
32	32	Sec. 372.202. PERPETUAL EXISTENCE. Notwithstanding any
33	33	other law, a public improvement district located in a
34	34	municipality's downtown area or central business district and
35	35	subject to this subchapter shall exist in perpetuity and shall not
36	36	terminate except by Act of the Legislature.
37	37	Sec. 372.203. CONTRACT WITH MANAGEMENT ORGANIZATION. (a)
38	38	In this subchapter, a "management organization" means a nonprofit
39	39	organization that is contracted to implement supplemental services
40	40	and improvements in a public improvement district subject to this
41	41	subchapter. A management organization shall be an eligible
42	42	management organization, as defined by section 372.204.
43	43	(b) A municipality subject to this subchapter shall
44	44	contract with a management organization to implemental
45	45	supplemental services and improvements in a public improvement
46	46	district subject to this subchapter.
47	47	(c) The municipality shall delegate full authority to the
48	48	management organization to oversee and manage the implementation of
49	49	supplemental services and improvements in the public improvement
50	50	district, including the receipt, handling, and use of funds
51	51	collected pursuant to this subchapter, exclusively for the
52	52	priorities defined in Section 372.006.
53	53	(d) A management organization shall be considered a
54	54	"governmental body" for purposes of Chapter 552, Government Code.
55	55	Sec. 372.204. ELIGIBLE MANAGEMENT ORGANIZATIONS (a) A
56	56	municipality may not contract with a management organization
57	57	pursuant to section 372.203 unless the management organization is
58	58	an eligible management organization, as defined by subsection (b).
59	59	(b) An "eligible management organization" means a nonprofit
60	60	organization that has provisions in its articles of incorporation,
61	61	certificate of formation, bylaws, or other governing documents
62	62	which provide for the following requirements:
63	63	(1) the organization's governing board is composed of
64	64	seven directors,
65	65	(2) directors serve staggered four year terms; however
66	66	three directors selected at random may be designated to serve an
67	67	initial two-year term in order to implement this provision,
68	68	(3) one director is appointed by the municipality in
69	69	which the public improvement district is located,
70	70	(4) one director is appointed by the county in which
71	71	the public improvement district is located,
72	72	(5) one director is appointed by the Governor of the
73	73	State of Texas,
74	74	(6) one director is appointed by the Lieutenant
75	75	Governor of the State of Texas,
76	76	(7) one director is appointed by the Speaker of the
77	77	Texas House of Representatives, and
78	78	(8) two directors are elected by the ten largest
79	79	owners of assessed property value, excluding exempt property,
80	80	located in the public improvement district, through means of
81	81	election specified by the organization's governing documents; such
82	82	elected directors shall be ineligible to serve consecutive terms.
83	83	Sec. 372.005. ADDITIONAL FUNDING REQUIREMENT. (a) A
84	84	municipality subject to this subchapter and the State of Texas
85	85	through a general appropriations act, shall each appropriate to a
86	86	management organization described by this subchapter an amount
87	87	equal to the revenue collected through an existing special
88	88	assessment of properties located in the district.
89	89	(b) A county subject to this subchapter shall appropriate to
90	90	a management organization described by this subchapter an amount
91	91	equal to one half of the revenue collected through an existing
92	92	special assement of properties located in the district.
93	93	(c) The funding requirements under subsection (a) and (b)
94	94	shall be appropriated in addition to the revenue collected through
95	95	existing special assessments imposed in the public improvement
96	96	district.
97	97	(d) A municipality or county subject to this subchapter
98	98	which imposes and collects a special assessment in a public
99	99	improvement district that is subject to this subchapter shall not
100	100	change the rate of the assessment that was assessed on January 1,
101	101	2025.
102	102	Sec. 372.006. PRIORITIES. (a) Under this section,
103	103	"vagrancy" means the habitual act of loitering, begging,
104	104	panhandling, scavenging, camping, sleeping, or otherwise remaining
105	105	idle for extended periods of time in a public place without a lawful
106	106	purpose.
107	107	(b) A management organization described by this subchapter
108	108	shall prioritize spending of assessed or appropriated funds on
109	109	supplemental services in order of priority of (i) eliminating
110	110	crime, (ii) eliminating vagrancy, (iii) improving cleanliness,
111	111	(iv) beautification, and (v) other projects to improve the
112	112	district.
113	113	(c) Appropriations to a management organization by the
114	114	State described by this subchapter and received under Section
115	115	372.005(a) shall be used exclusively for the purposes of
116	116	eliminating crime and vagrancy.
117	117	Sec. 372.007. ENFORCEMENT. (a) An owner of property
118	118	located in a public improvement district subject to this subchapter
119	119	shall have standing to sue a management organization described by
120	120	this subchapter to seek injunctive relief or specific performance
121	121	in a district court to enforce compliance with this subchapter,
122	122	other state law, or the management organization's governing
123	123	documents. A property owner shall not be entitled to money damages
124	124	in a suit under this section.
125	125	(b) A property owner who substantially prevails in a suit
126	126	brought pursuant to subsection (a) shall be entitled to costs of
127	127	court and reasonable attorney's fees.
128	128	(c) Sovereign and governmental immunity to suit and
129	129	liability is abolished and waived to the extent of liability under
130	130	this section.
131	131	SECTION 2. This Act takes effect September 1, 2025.