Texas 2025 - 89th Regular

Texas House Bill HB5677 Latest Draft

Bill / Introduced Version Filed 04/14/2025

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                            89R12621 JXC-F
 By: Cole H.B. No. 5677




 A BILL TO BE ENTITLED
 relating to the creation of the Pura Vida Municipal Management
 District No. 1; providing authority to issue bonds; providing
 authority to impose assessments, fees, and taxes; granting a
 limited power of eminent domain.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle C, Title 4, Special District Local Laws
 Code, is amended by adding Chapter 4013 to read as follows:
 CHAPTER 4013. PURA VIDA MUNICIPAL MANAGEMENT DISTRICT NO. 1
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 4013.0101.  DEFINITIONS.  In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "City" means the City of Mustang Ridge.
 (3)  "Director" means a board member.
 (4)  "District" means the Pura Vida Municipal
 Management District No. 1.
 Sec. 4013.0102.  NATURE OF DISTRICT. The Pura Vida
 Municipal Management District No. 1 is a special district created
 under Section 59, Article XVI, Texas Constitution.
 Sec. 4013.0103.  PURPOSE; DECLARATION OF INTENT. (a) The
 creation of the district is essential to accomplish the purposes of
 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
 Texas Constitution, and other public purposes stated in this
 chapter.
 (b)  By creating the district and in authorizing the city and
 other political subdivisions to contract with the district, the
 legislature has established a program to accomplish the public
 purposes set out in Section 52-a, Article III, Texas Constitution.
 (c)  The creation of the district is necessary to promote,
 develop, encourage, and maintain employment, commerce,
 transportation, housing, tourism, recreation, the arts,
 entertainment, economic development, safety, and the public
 welfare in the district.
 (d)  This chapter and the creation of the district may not be
 interpreted to relieve the city from providing the level of
 services provided as of the effective date of the Act enacting this
 chapter to the area in the district. The district is created to
 supplement and not to supplant city services provided in the
 district.
 Sec. 4013.0104.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
 (a) All land and other property included in the district will
 benefit from the improvements and services to be provided by the
 district under powers conferred by Sections 52 and 52-a, Article
 III, and Section 59, Article XVI, Texas Constitution, and other
 powers granted under this chapter.
 (b)  The district is created to serve a public use and
 benefit.
 (c)  The creation of the district is in the public interest
 and is essential to further the public purposes of:
 (1)  developing and diversifying the economy of the
 state;
 (2)  eliminating unemployment and underemployment; and
 (3)  developing or expanding transportation and
 commerce.
 (d)  The district will:
 (1)  promote the health, safety, and general welfare of
 residents, employers, potential employees, employees, visitors,
 and consumers in the district, and of the public;
 (2)  provide needed funding for the district to
 preserve, maintain, and enhance the economic health and vitality of
 the district territory as a community and business center;
 (3)  promote the health, safety, welfare, and enjoyment
 of the public by providing pedestrian ways and by landscaping and
 developing certain areas in the district, which are necessary for
 the restoration, preservation, and enhancement of scenic beauty;
 and
 (4)  provide for water, wastewater, drainage, road, and
 recreational facilities for the district.
 (e)  Pedestrian ways along or across a street, whether at
 grade or above or below the surface, and street lighting, street
 landscaping, parking, and street art objects are parts of and
 necessary components of a street and are considered to be a street
 or road improvement.
 (f)  The district will not act as the agent or
 instrumentality of any private interest even though the district
 will benefit many private interests as well as the public.
 Sec. 4013.0105.  INITIAL DISTRICT TERRITORY. (a) The
 district is initially composed of the territory described by
 Section 2 of the Act enacting this chapter.
 (b)  The boundaries and field notes contained in Section 2 of
 the Act enacting this chapter form a closure. A mistake in the
 field notes or in copying the field notes in the legislative process
 does not affect the district's:
 (1)  organization, existence, or validity;
 (2)  right to issue any type of bonds for the purposes
 for which the district is created or to pay the principal of and
 interest on the bonds;
 (3)  right to impose or collect an assessment or tax; or
 (4)  legality or operation.
 Sec. 4013.0106.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
 All or any part of the area of the district is eligible to be
 included in:
 (1)  a tax increment reinvestment zone created under
 Chapter 311, Tax Code; or
 (2)  a tax abatement reinvestment zone created under
 Chapter 312, Tax Code.
 Sec. 4013.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT
 DISTRICTS LAW. Except as otherwise provided by this chapter,
 Chapter 375, Local Government Code, applies to the district.
 Sec. 4013.0108.  CONSTRUCTION OF CHAPTER. This chapter
 shall be liberally construed in conformity with the findings and
 purposes stated in this chapter.
 SUBCHAPTER B. BOARD OF DIRECTORS
 Sec. 4013.0201.  GOVERNING BODY; TERMS. (a) The district is
 governed by a board of five elected directors who serve staggered
 terms of four years.
 (b)  Directors are elected in the manner provided by
 Subchapter D, Chapter 49, Water Code.
 Sec. 4013.0202.  COMPENSATION; EXPENSES. (a) The district
 may compensate each director in an amount not to exceed $150 for
 each board meeting. The total amount of compensation for each
 director in one year may not exceed $7,200.
 (b)  A director is entitled to reimbursement for necessary
 and reasonable expenses incurred in carrying out the duties and
 responsibilities of the board.
 (c)  Sections 375.069 and 375.070, Local Government Code, do
 not apply to the board.
 Sec. 4013.0203.  TEMPORARY DIRECTORS. (a) On or after the
 effective date of the Act enacting this chapter, the owner or owners
 of a majority of the assessed value of the real property in the
 district according to the most recent certified county tax
 appraisal roll may submit a petition to the Texas Commission on
 Environmental Quality requesting that the commission appoint as
 temporary directors the five persons named in the petition.  The
 commission shall appoint as temporary directors the five persons
 named in the petition.
 (b)  The temporary or successor temporary directors shall
 hold an election to elect five permanent directors as provided by
 Section 4013.0201.
 (c)  Temporary directors serve until the earlier of:
 (1)  the date permanent directors are elected under
 Subsection (b); or
 (2)  the fourth anniversary of the effective date of
 the Act enacting this chapter.
 (d)  If permanent directors have not been elected under
 Subsection (b) and the terms of the temporary directors have
 expired, successor temporary directors shall be appointed or
 reappointed as provided by Subsection (e) to serve terms that
 expire on the earlier of:
 (1)  the date permanent directors are elected under
 Subsection (b); or
 (2)  the fourth anniversary of the date of the
 appointment or reappointment.
 (e)  If Subsection (d) applies, the owner or owners of a
 majority of the assessed value of the real property in the district
 according to the most recent certified county tax appraisal roll
 may submit a petition to the Texas Commission on Environmental
 Quality requesting that the commission appoint as successor
 temporary directors the five persons named in the petition.  The
 commission shall appoint as successor temporary directors the five
 persons named in the petition.
 SUBCHAPTER C. POWERS AND DUTIES
 Sec. 4013.0301.  GENERAL POWERS AND DUTIES. The district
 has the powers and duties necessary to accomplish the purposes for
 which the district is created.
 Sec. 4013.0302.  IMPROVEMENT PROJECTS AND SERVICES. (a) The
 district, using any money available to the district for the
 purpose, may provide, design, construct, acquire, improve,
 relocate, operate, maintain, or finance an improvement project or
 service authorized under this chapter or Chapter 375, Local
 Government Code.
 (b)  The district may contract with a governmental or private
 entity to carry out an action under Subsection (a).
 (c)  The implementation of a district project or service is a
 governmental function or service for the purposes of Chapter 791,
 Government Code.
 Sec. 4013.0303.  NONPROFIT CORPORATION. (a) The board by
 resolution may authorize the creation of a nonprofit corporation to
 assist and act for the district in implementing a project or
 providing a service authorized by this chapter.
 (b)  The nonprofit corporation:
 (1)  has each power of and is considered to be a local
 government corporation created under Subchapter D, Chapter 431,
 Transportation Code; and
 (2)  may implement any project and provide any service
 authorized by this chapter.
 (c)  The board shall appoint the board of directors of the
 nonprofit corporation. The board of directors of the nonprofit
 corporation shall serve in the same manner as the board of directors
 of a local government corporation created under Subchapter D,
 Chapter 431, Transportation Code, except that a board member is not
 required to reside in the district.
 Sec. 4013.0304.  LAW ENFORCEMENT SERVICES. To protect the
 public interest, the district may contract with a qualified party,
 including the city, to provide additional law enforcement services
 in the district for a fee.
 Sec. 4013.0305.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
 The district may join and pay dues to a charitable or nonprofit
 organization that performs a service or provides an activity
 consistent with the furtherance of a district purpose.
 Sec. 4013.0306.  ECONOMIC DEVELOPMENT PROGRAMS. (a) The
 district may engage in activities that accomplish the economic
 development purposes of the district.
 (b)  The district may establish and provide for the
 administration of one or more programs to promote state or local
 economic development and to stimulate business and commercial
 activity in the district, including programs to:
 (1)  make loans and grants of public money; and
 (2)  provide district personnel and services.
 (c)  The district may create economic development programs
 and exercise the economic development powers provided to
 municipalities by:
 (1)  Chapter 380, Local Government Code; and
 (2)  Subchapter A, Chapter 1509, Government Code.
 Sec. 4013.0307.  PARKING FACILITIES. (a) The district may
 acquire, lease as lessor or lessee, construct, develop, own,
 operate, and maintain parking facilities or a system of parking
 facilities, including lots, garages, parking terminals, or other
 structures or accommodations for parking motor vehicles off the
 streets and related appurtenances.
 (b)  The district's parking facilities serve the public
 purposes of the district and are owned, used, and held for a public
 purpose even if leased or operated by a private entity for a term of
 years.
 (c)  The district's parking facilities are parts of and
 necessary components of a street and are considered to be a street
 or road improvement.
 (d)  The development and operation of the district's parking
 facilities may be considered an economic development program.
 Sec. 4013.0308.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
 board by resolution shall establish the number of directors'
 signatures and the procedure required for a disbursement or
 transfer of district money.
 Sec. 4013.0309.  ADDING OR EXCLUDING LAND. Except as
 provided by Section 4013.0310, the district may add or exclude land
 in the manner provided by Subchapter J, Chapter 49, Water Code, or
 by Subchapter H, Chapter 54, Water Code.
 Sec. 4013.0310.   DIVISION OF DISTRICT. (a) The district may
 be divided into two or more new districts only if the district:
 (1)  has no outstanding bonded debt; and
 (2)  is not imposing ad valorem taxes.
 (b)  This chapter applies to any new district created by the
 division of the district, and a new district has all the powers and
 duties of the district.
 (c)  Any new district created by the division of the district
 may not, at the time the new district is created, contain any land
 outside the area described by Section 2 of the Act enacting this
 chapter.
 (d)  The board, on its own motion or on receipt of a petition
 signed by the owner or owners of a majority of the assessed value of
 the real property in the district, may adopt an order dividing the
 district.
 (e)  An order dividing the district must:
 (1)  name each new district;
 (2)  include the metes and bounds description of the
 territory of each new district;
 (3)  appoint initial directors for each new district;
 and
 (4)  provide for the division of assets and liabilities
 between or among the new districts.
 (f)  On or before the 30th day after the date of adoption of
 an order dividing the district, the district shall file the order
 with the Texas Commission on Environmental Quality and record the
 order in the real property records of each county in which the
 district is located.
 (g)  Any new district created by the division of the district
 must hold an election as required by this chapter to obtain voter
 approval before the district may impose a maintenance tax or issue
 bonds payable wholly or partly from ad valorem taxes.
 (h)  Municipal consent to the creation of the district and to
 the inclusion of land in the district granted under Section
 4013.0506 acts as municipal consent to the creation of any new
 district created by the division of the district and to the
 inclusion of land in the new district.
 Sec. 4013.0311.  EMINENT DOMAIN. The district may exercise
 the power of eminent domain in the manner provided by Section
 49.222, Water Code.
 SUBCHAPTER D. ASSESSMENTS
 Sec. 4013.0401.  PETITION REQUIRED FOR FINANCING SERVICES
 AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
 service or improvement project with assessments under this chapter
 unless a written petition requesting that service or improvement
 has been filed with the board.
 (b)  A petition filed under Subsection (a) must be signed by
 the owners of a majority of the assessed value of real property in
 the district subject to assessment according to the most recent
 certified county tax appraisal roll.
 Sec. 4013.0402.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
 The board by resolution may impose and collect an assessment for any
 purpose authorized by this chapter in all or any part of the
 district.
 (b)  An assessment, a reassessment, or an assessment
 resulting from an addition to or correction of the assessment roll
 by the district, penalties and interest on an assessment or
 reassessment, an expense of collection, and reasonable attorney's
 fees incurred by the district:
 (1)  are a first and prior lien against the property
 assessed;
 (2)  are superior to any other lien or claim other than
 a lien or claim for county, school district, or municipal ad valorem
 taxes; and
 (3)  are the personal liability of and a charge against
 the owners of the property even if the owners are not named in the
 assessment proceedings.
 (c)  The lien is effective from the date of the board's
 resolution imposing the assessment until the date the assessment is
 paid. The board may enforce the lien in the same manner that the
 board may enforce an ad valorem tax lien against real property.
 (d)  The board may make a correction to or deletion from the
 assessment roll that does not increase the amount of assessment of
 any parcel of land without providing notice and holding a hearing in
 the manner required for additional assessments.
 SUBCHAPTER E. TAXES AND BONDS
 Sec. 4013.0501.  TAX ELECTION REQUIRED. (a)  The district
 must hold an election in the manner provided by Chapter 49, Water
 Code, or, if applicable, Chapter 375, Local Government Code, to
 obtain voter approval before the district may impose an ad valorem
 tax.
 (b)  Section 375.243, Local Government Code, does not apply
 to the district.
 Sec. 4013.0502.  OPERATION AND MAINTENANCE TAX. (a) If
 authorized by a majority of the district voters voting at an
 election under Section 4013.0501, the district may impose an
 operation and maintenance tax on taxable property in the district
 in the manner provided by Section 49.107, Water Code, for any
 district purpose, including to:
 (1)  maintain and operate the district;
 (2)  construct or acquire improvements; or
 (3)  provide a service.
 (b)  The board shall determine the operation and maintenance
 tax rate. The rate may not exceed the rate approved at the
 election.
 Sec. 4013.0503.  AUTHORITY TO BORROW MONEY AND TO ISSUE
 BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
 terms determined by the board.
 (b)  The district may issue, by public or private sale,
 bonds, notes, or other obligations payable wholly or partly from ad
 valorem taxes, assessments, impact fees, revenue, contract
 payments, grants, or other district money, or any combination of
 those sources of money, to pay for any authorized district purpose.
 (c)  The limitation on the outstanding principal amount of
 bonds, notes, or other obligations provided by Section 49.4645,
 Water Code, does not apply to the district.
 (d)  The district may issue, by public or private sale,
 bonds, notes, or other obligations payable wholly or partly from
 assessments in the manner provided by Subchapter A, Chapter 372,
 Local Government Code, if the improvement financed by the
 obligation issued under this section will be conveyed to or
 operated and maintained by a municipality or other retail utility
 provider pursuant to an agreement with the district entered into
 before the issuance of the obligation.
 Sec. 4013.0504.  BONDS SECURED BY REVENUE OR CONTRACT
 PAYMENTS. The district may issue, without an election, bonds
 secured by:
 (1)  revenue other than ad valorem taxes, including
 contract revenues; or
 (2)  contract payments, provided that the requirements
 of Section 49.108, Water Code, have been met.
 Sec. 4013.0505.  BONDS SECURED BY AD VALOREM TAXES;
 ELECTIONS. (a) If authorized at an election under Section
 4013.0501, the district may issue bonds payable from ad valorem
 taxes.
 (b)  At the time the district issues bonds payable wholly or
 partly from ad valorem taxes, the board shall provide for the annual
 imposition of a continuing direct annual ad valorem tax, without
 limit as to rate or amount, for each year that all or part of the
 bonds are outstanding as required and in the manner provided by
 Sections 54.601 and 54.602, Water Code.
 (c)  All or any part of any facilities or improvements that
 may be acquired by a district by the issuance of its bonds may be
 submitted as a single proposition or as several propositions to be
 voted on at the election.
 Sec. 4013.0506.  CONSENT OF MUNICIPALITY REQUIRED. (a) The
 board may not issue bonds until each municipality in whose
 corporate limits or extraterritorial jurisdiction the district is
 located has consented by ordinance or resolution to the creation of
 the district and to the inclusion of land in the district as
 required by applicable law.
 (b)  This section applies only to the district's first
 issuance of bonds payable from ad valorem taxes.
 SUBCHAPTER F.  SALES AND USE TAX
 Sec. 4013.0601.  MEANINGS OF WORDS AND PHRASES. A word or
 phrase used in this subchapter that is defined by Chapter 151 or
 321, Tax Code, has the meaning assigned by Chapter 151 or 321, Tax
 Code.
 Sec. 4013.0602.  APPLICABILITY OF CERTAIN TAX CODE
 PROVISIONS.  (a)  The provisions of Subchapters C, D, E, and F,
 Chapter 323, Tax Code, relating to county sales and use taxes apply
 to the application, collection, and administration of a sales and
 use tax imposed under this subchapter to the extent consistent with
 this chapter, as if references in Chapter 323, Tax Code, to a county
 referred to the district and references to a commissioners court
 referred to the board.
 (b)  Sections 323.401-323.404 and 323.505, Tax Code, do not
 apply to a tax imposed under this subchapter.
 Sec. 4013.0603.  AUTHORIZATION; ELECTION. (a) The district
 shall adopt, reduce, or repeal the sales and use tax authorized by
 this subchapter at an election in which a majority of the voters of
 the district voting in the election approve the adoption,
 reduction, or repeal of the tax, as applicable.
 (b)  The board by order shall call an election to adopt,
 reduce, or repeal a sales and use tax.  The election shall be held on
 the first authorized uniform election date that occurs after the
 time required by Section 3.005, Election Code.
 (c)  The district shall provide notice of the election and
 shall hold the election in the manner prescribed by Chapter 54,
 Water Code, for bond elections for municipal utility districts.
 (d)  The ballots shall be printed to provide for voting for
 or against the following appropriate proposition:
 (1)  "Adoption of a ___ percent district sales and use
 tax in the district";
 (2)  "Reduction of the district sales and use tax in the
 district from ___ percent to ___ percent"; or
 (3)  "Repeal of the district sales and use tax in the
 district."
 Sec. 4013.0604.  EFFECTIVE DATE OF TAX.  A tax imposed under
 this subchapter or the repeal or reduction of a tax under this
 subchapter takes effect on the first day of the first calendar
 quarter that occurs after the date the comptroller receives the
 copy of the resolution as required by Section 323.405(b), Tax Code.
 Sec. 4013.0605.  SALES AND USE TAX RATE.  (a)  On adoption
 of the tax authorized by this subchapter, there is imposed a tax of
 two percent, or the maximum rate at which the combined tax rate of
 all local sales and use taxes in any location in the district does
 not exceed two percent, on the receipts from the sale at retail of
 taxable items in the district, and an excise tax on the use,
 storage, or other consumption in the district of taxable items
 purchased, leased, or rented from a retailer in the district during
 the period that the tax is in effect.
 (b)  The rate of the excise tax is the same as the rate of the
 sales tax portion of the tax and is applied to the sales price of the
 taxable item.
 Sec. 4013.0606.  EXAMINATION AND RECEIPT OF
 INFORMATION.  The district may examine and receive information
 related to the imposition of a sales and use tax to the same extent
 as if the district were a municipality.
 Sec. 4013.0607.  ALTERNATIVE METHOD OF IMPOSITION.
 Notwithstanding any other provision of this subchapter, the
 district may impose the sales and use tax as provided by Subchapter
 F, Chapter 383, Local Government Code, instead of as provided by the
 other provisions of this subchapter.
 SUBCHAPTER G. HOTEL OCCUPANCY TAX
 Sec. 4013.0701.  DEFINITION. In this subchapter, "hotel"
 has the meaning assigned by Section 156.001, Tax Code.
 Sec. 4013.0702.  APPLICABILITY OF CERTAIN TAX CODE
 PROVISIONS.  (a)  In this subchapter:
 (1)  a reference in Chapter 352, Tax Code, to a county
 is a reference to the district; and
 (2)  a reference in Chapter 352, Tax Code, to the
 commissioners court is a reference to the board.
 (b)  Except as inconsistent with this subchapter, Subchapter
 A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized
 by this subchapter, including the collection of the tax, subject to
 the limitations prescribed by Sections 352.002(b) and (c), Tax
 Code.
 Sec. 4013.0703.  TAX AUTHORIZED; TAX RATE.  (a) The district
 may impose a hotel occupancy tax for the purposes described by
 Section 4013.0705.
 (b)  The amount of the tax may not exceed seven percent of the
 price paid for a room in a hotel.
 Sec. 4013.0704.  INFORMATION.  The district may examine and
 receive information related to the imposition of hotel occupancy
 taxes to the same extent as if the district were a municipality.
 Sec. 4013.0705.  USE OF HOTEL OCCUPANCY TAX. (a) The
 district may use the proceeds from a hotel occupancy tax imposed
 under this subchapter for any of the district's purposes and for the
 purposes described by Section 352.1015, Tax Code, to the extent the
 board considers appropriate.
 (b)  During each interval of three calendar years following
 the date on which a hotel occupancy tax imposed under this
 subchapter is initially collected, the board may not apply an
 annual average of more than 10 percent of the amount of tax
 collected under that section, excluding any interest earnings or
 investment profits and after a deduction for the costs of imposing
 and collecting the taxes, for the administrative expenses of the
 district or a district purpose other than:
 (1)  the costs of advertising and promoting tourism; or
 (2)  the costs of business development and commerce,
 including the costs of planning, designing, constructing,
 acquiring, leasing, financing, owning, operating, maintaining,
 managing, improving, repairing, rehabilitating, or reconstructing
 improvement projects for:
 (A)  conferences, conventions, meeting space, and
 exhibitions;
 (B)  manufacturer, consumer, or trade shows;
 (C)  hotels, lodging, and hospitality;
 (D)  arts and entertainment;
 (E)  parks and recreation;
 (F)  economic development; and
 (G)  civic, community, or institutional events.
 SUBCHAPTER H.  HOTEL AND CONVENTION CENTER PROJECTS
 Sec. 4013.0801.  DEFINITIONS. (a) In this subchapter,
 "qualified convention center facility," "qualified hotel," and
 "qualified project" have the meanings assigned by Section 351.151,
 Tax Code.
 (b)  Notwithstanding Section 351.157(a), Tax Code, for
 purposes of a qualified project of the district, "qualified
 establishment" means an establishment:
 (1)  that is:
 (A)  a restaurant, bar, or retail establishment;
 (B)  located on land owned by the district; and
 (C)  constructed on or after the date the district
 commences a qualified project under this subchapter; and
 (2)  the nearest exterior wall of which is located not
 more than 1,000 feet from the nearest exterior wall of a qualified
 convention center facility or qualified hotel.
 Sec. 4013.0802.  HOTEL AND CONVENTION CENTER PROJECTS. (a)
 The board by order may authorize proceeds from the hotel occupancy
 tax imposed under Subchapter G of this chapter to be used for a
 qualified project under Subchapter C, Chapter 351, Tax Code. The
 use authorized by this subsection is in addition to any other use
 authorized by law.
 (b)  If the board adopts an order described by Subsection
 (a):
 (1)  a reference in Subchapter C, Chapter 351, Tax
 Code, to a municipality is a reference to the district; and
 (2)  the district is considered to be a municipality
 for purposes of Subchapter C, Chapter 351, Tax Code, with the same
 rights, privileges, and responsibilities as a municipality under
 that subchapter, including the ability to pledge or commit revenue
 under Section 351.155, Tax Code, for bonds or other obligations
 issued for a qualified project or contractual obligations for a
 qualified project and to receive certain tax revenue under Sections
 351.156 and 351.157, Tax Code.
 (c)  In the event of a conflict between this section and
 another provision of this chapter, this section controls.
 (d)  The comptroller may adopt rules necessary to implement
 and administer this section.
 SUBCHAPTER I. DISSOLUTION
 Sec. 4013.0901.  DISSOLUTION. (a) The board shall dissolve
 the district on written petition filed with the board by the owners
 of:
 (1)  at least two-thirds of the assessed value of the
 property subject to assessment by the district based on the most
 recent certified county property tax rolls; or
 (2)  at least two-thirds of the surface area of the
 district, excluding roads, streets, highways, utility
 rights-of-way, other public areas, and other property exempt from
 assessment by the district according to the most recent certified
 county property tax rolls.
 (b)  The board by majority vote may dissolve the district at
 any time.
 (c)  The district may not be dissolved by its board under
 Subsection (a) or (b) if the district:
 (1)  has any outstanding bonded indebtedness until that
 bonded indebtedness has been repaid or defeased in accordance with
 the order or resolution authorizing the issuance of the bonds;
 (2)  has a contractual obligation to pay money until
 that obligation has been fully paid in accordance with the
 contract; or
 (3)  owns, operates, or maintains public works,
 facilities, or improvements unless the district contracts with
 another person for the ownership, operation, or maintenance of the
 public works, facilities, or improvements.
 (d)  Sections 375.261, 375.262, and 375.264, Local
 Government Code, do not apply to the district.
 SECTION 2.  The Pura Vida Municipal Management District
 No. 1 initially includes all territory contained in the following
 area:
 211.348 ACRES LAND OUT THE WILLIAM LEWIS, SR. SURVEY,
 ABSTRACT NO. 479 AND THE AUGUSTAS KINCHELOE SURVEY NUMBER 2,
 ABSTRACT NO. 457, TRAVIS COUNTY, TEXAS, BEING ALL OR A PORTION OF
 THE FOLLOWING EIGHT (8) TRACTS:
 TRACT 1: A 70.887 ACRE PORTION OF THAT CERTAIN 141.321 ACRE
 TRACT CALLED FIRST TRACT CONVEYED TO MUSTANG RIDGE, LLC BY DEED
 RECORDED IN DOCUMENT NUMBER 2019142513, OFFICIAL PUBLIC RECORDS
 TRAVIS COUNTY, TEXAS;
 TRACT 2: ALL OF THAT CERTAIN 23.625 ACRE TRACT DECRIBED IN A
 DEED TO MUSTANG RIDGE, LLC RECORDED IN DOCUMENT NUMBER 2020003359,
 OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS;
 TRACT 3: ALL OF THAT CERTAIN 0.892 ACRE TRACT CALLED SECOND
 TRACT DESCRIBED IN A DEED TO MUSTANG RIDGE, LLC RECORDED IN DOCUMENT
 NUMBER 2019142513, OFFICIAL PUBLIC RECORDS TRAVIS COUNTY, TEXAS;
 TRACT 4: ALL OF THAT CERTAIN 19.283 ACRE TRACT DECRIBED IN A
 DEED TO MUSTANG RIDGE, LLC RECORDED IN DOCUMENT NUMBER 2023073358,
 OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS;
 TRACT 5: ALL OF THAT CERTAIN 2.986 ACRE TRACT DECRIBED IN A
 DEED TO MUSTANG RIDGE, LLC RECORDED IN DOCUMENT NUMBER 2022052056,
 OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS;
 TRACT 6: ALL OF THAT CERTAIN 16.383 ACRE TRACT DECRIBED IN A
 DEED TO MUSTANG RIDGE, LLC RECORDED IN DOCUMENT NUMBER 2021040262,
 OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS;
 TRACT 7: ALL OF THAT CERTAIN 74.555 ACRE TRACT, CALLED 74.557
 ACRES, DESCRIBED IN A DEED TO MUSTANG RIDGE, LLC RECORDED IN
 DOCUMENT NUMBER 2022039968 OFFICIAL PUBLIC RECORDS OF TRAVIS
 COUNTY, TEXAS;
 TRACT 8: ALL OF THAT CERTAIN 2.737 ACRE TRACT DECRIBED IN A
 DEED TO MUSTANG RIDGE, LLC RECORDED IN DOCUMENT NUMBER 2020099394,
 OFFICIAL PUBLIC RECORDS OF TRAVIS COUNTY, TEXAS;
 THE SAID 211.348 ACRES BEING MORE PARTICULARLY DESCRIBED BY
 METES AND BOUNDS AS FOLLOWS:
 BEGINNING AT A 1/2 INCH DIAMETER STEEL PIN FOUND WITH CAP
 MARKED LENZ & ASSOC ON THE WEST RIGHT-OF-WAY LINE OF U.S. HIGHWAY
 183 AT THE NORTHERLY MOST CORNER OF THE SAID TRACT 3;
 THENCE, S 04°08'59" E, A DISTANCE OF 1924.31 FEET ALONG THE
 WEST RIGHT-OF-WAY LINE OF U.S. HIGHWAY 183, THE SAME BEING THE EAST
 LINE OF THE SAID TRACT 3, TRACT 2 AND TRACT 6, TO A 1/2 INCH DIAMETER
 STEEL PIN FOUND WITH CAP MARKED LENZ & ASSOC AT THE SOUTHEAST CORNER
 OF THE SAID TRACT 6;
 THENCE, S 85°47'49" W, A DISTANCE OF 825.12 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND WITH CAP MARKED HINKLE AT THE SOUTHWEST
 CORNER OF THE SAID TRACT 6, THE SAME BEING THE SOUTHEAST CORNER OF
 THE SAID TRACT 5;
 THENCE S 71°51'32" W, A DISTANCE OF 668.21 FEET TO A COMPUTED
 POINT AT THE SOUTHWEST CORNER OF THE SAID TRACT 5 ON THE NORTHEAST
 LINE OF THE SAID TRACT 7;
 THENCE, S 47°08'40" E, A DISTANCE OF 630.54 FEET TO A1/2 INCH
 DIAMETER STEEL IN FOUND ON THE NORTH RIGHT-OF-WAY LINE OF F.M.
 HIGHWAY 1327 AT THE SOUTHEAST CORNER OF THE SAID TRACT 7;
 THENCE, S 73°47'17" W, A DISTANCE OF 1483.54 FEET ALONG THE
 NORTH RIGHT-OF-WAY LINE OF F.M. HIGHWAY 1327 TO A COMPUTED POINT AT
 AN EXTERIOR CORNER OF THE SAID TRACT 7;
 THENCE, N 47°25'48" W, A DISTANCE OF 478.19 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND AT AN INTERIOR CORNER OF THE SAID TRACT 7;
 THENCE, S 42°24'52" W, A DISTANCE OF 313.00 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND AT AN EXTERIOR CORNER OF THE SAID TRACT 7;
 THENCE, N 62°17'17" W, A DISTANCE OF 1295.87 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND AT THE MOST WESTERLY OR SOUTHWEST CORNER OF
 THE SAID TRACT 7;
 THENCE, N 28°02'48" E, A DISTANCE OF 1393.50 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND WITH CAP MARKED LENZ & ASSOC AT THE
 NORTHWEST CORNER OF THE SAID TRACT 7, THE SAME BEING THE SOUTHWEST
 CORNER OF THE SAID TRACT 8;
 THENCE, N 27°41'52" E A DISTANCE OF 1635.14 FEET ALONG THE
 WEST LINE OF THE SAID TRACT 8 AND TRACT 1, CROSSING THE SAID 141.321
 ACRE MUSTANG RIDGE, LLC TRACT, TO A 1/2 INCH DIAMETER STEEL PIN
 FOUND AT THE SOUTHWEST CORNER OF THE SAID TRACT 4;
 THENCE, N 27°30'40" E, A DISTANCE OF 378.90 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND WITH CAP MARKED CHAPARRAL AT THE NORTHWEST
 CORNER OF THE SAID TRACT 4;
 THENCE, S 61°49'55" E, A DISTANCE OF 2300.72 FEET TO A 1/2 INCH
 DIAMETER STEEL PIN FOUND AT THE NORTHEAST CORNER OF THE SAID TRACT 4
 ON WEST LINE OF THE SAID TRACT 3;
 THENCE, N 42°24'59" E, A DISTANCE OF 552.95 FEET TO THE PLACE
 OF BEGINNING, CONTAINING 211.348 ACRES OF LAND, MORE OR LESS.
 SECTION 3.  (a) The legal notice of the intention to
 introduce this Act, setting forth the general substance of this
 Act, has been published as provided by law, and the notice and a
 copy of this Act have been furnished to all persons, agencies,
 officials, or entities to which they are required to be furnished
 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
 Government Code.
 (b)  The governor, one of the required recipients, has
 submitted the notice and Act to the Texas Commission on
 Environmental Quality.
 (c)  The Texas Commission on Environmental Quality has filed
 its recommendations relating to this Act with the governor,
 lieutenant governor, and speaker of the house of representatives
 within the required time.
 (d)  All requirements of the constitution and laws of this
 state and the rules and procedures of the legislature with respect
 to the notice, introduction, and passage of this Act have been
 fulfilled and accomplished.
 SECTION 4.  (a) Section 4013.0311, Special District Local
 Laws Code, as added by Section 1 of this Act, takes effect only if
 this Act receives a two-thirds vote of all the members elected to
 each house.
 (b)  If this Act does not receive a two-thirds vote of all the
 members elected to each house, Subchapter C, Chapter 4013, Special
 District Local Laws Code, as added by Section 1 of this Act, is
 amended by adding Section 4013.0311 to read as follows:
 Sec. 4013.0311.  NO EMINENT DOMAIN POWER. The district may
 not exercise the power of eminent domain.
 SECTION 5.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2025.