Texas 2025 - 89th Regular

Texas Senate Bill SB2594 Compare Versions

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

Old	New	Differences
1	1	89R15003 MP-F
2	2	By: Middleton S.B. No. 2594
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the provision of supplemental services by management
10	10	organizations in certain public improvement districts located in
11	11	certain municipalities.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 372.011, Local Government Code, is
14	14	amended to read as follows:
15	15	Sec. 372.011. DISSOLUTION. Except as provided by Section
16	16	372.203, a [A] public hearing may be called and held in the same
17	17	manner as a hearing under Section 372.009 for the purpose of
18	18	dissolving a district if a petition requesting dissolution is filed
19	19	and the petition contains the signatures of at least enough
20	20	property owners in the district to make a petition sufficient under
21	21	Section 372.005(b). If the district is dissolved, the district
22	22	nonetheless shall remain in effect for the purpose of meeting
23	23	obligations of indebtedness for improvements.
24	24	SECTION 2. Chapter 372, Local Government Code, is amended
25	25	by adding Subchapter E to read as follows:
26	26	SUBCHAPTER E. DOWNTOWN IMPROVEMENT DISTRICTS IN CERTAIN
27	27	MUNICIPALITIES
28	28	Sec. 372.201. DEFINITIONS. In this subchapter:
29	29	(1) "Affected district" means a public improvement
30	30	district that is located in a municipality's central business
31	31	district and has the largest operating budget of any public
32	32	improvement district located in the central business district as of
33	33	January 1, 2025.
34	34	(2) "Management organization" means a nonprofit
35	35	organization that a municipality has entered into a contract with
36	36	to implement supplemental services and improvements in an affected
37	37	district.
38	38	(3) "Vagrancy" means the habitual act of loitering,
39	39	begging, panhandling, scavenging, camping, sleeping, or otherwise
40	40	remaining idle for extended periods of time in a public place
41	41	without a lawful purpose.
42	42	Sec. 372.202. APPLICABILITY OF SUBCHAPTER. This subchapter
43	43	applies only to a municipality that has a population of more than
44	44	900,000 and less than two million.
45	45	Sec. 372.203. PERPETUAL EXISTENCE. Notwithstanding any
46	46	other law, an affected district may not be dissolved under Section
47	47	372.011 or any other general law, but may be dissolved by special
48	48	law.
49	49	Sec. 372.204. CONTRACT WITH MANAGEMENT ORGANIZATION. (a)
50	50	Except as provided by Section 372.205, a municipality shall enter
51	51	into a contract with a management organization that:
52	52	(1) implements supplemental services and improvements
53	53	in an affected district created by the municipality; and
54	54	(2) is delegated full authority to oversee and manage
55	55	the implementation of supplemental services and improvements as
56	56	provided by Section 372.208, including the receipt, handling, and
57	57	use of money in accordance with this subchapter.
58	58	(b) A management organization that enters into a contract
59	59	under this section is considered a governmental body for purposes
60	60	of Chapter 552, Government Code.
61	61	Sec. 372.205. GOVERNING BODY OF MANAGEMENT ORGANIZATIONS.
62	62	(a) A municipality may not enter into a contract with a management
63	63	organization under this subchapter unless the governing body of the
64	64	management organization complies with this section.
65	65	(b) The governing body of a nonprofit organization that may
66	66	serve as a management organization under this subchapter must be
67	67	composed of seven directors that serve staggered, four-year terms.
68	68	Five of the directors must be appointed as provided by Subsection
69	69	(c) and two of the directors must be elected as provided by
70	70	Subsection (d).
71	71	(c) The appointed directors of the governing body of a
72	72	nonprofit organization that may serve as a management organization
73	73	under this subchapter must be appointed as follows:
74	74	(1) one director appointed by the municipality in
75	75	which the affected district is located;
76	76	(2) one director appointed by the commissioners court
77	77	of the county in which the affected district is located;
78	78	(3) one director appointed by the governor;
79	79	(4) one director appointed by the lieutenant governor;
80	80	and
81	81	(5) one director appointed by the speaker of the house
82	82	of representatives.
83	83	(d) The elected directors of the governing body of a
84	84	nonprofit organization that may serve as a management organization
85	85	under this subchapter must be elected by the 10 largest owners of
86	86	taxable real property liable for an assessment in the affected
87	87	district, as determined by the current roll of the appraisal
88	88	district in which the property is located. The governing documents
89	89	of the nonprofit organization must prescribe the means of electing
90	90	the directors under this subsection. An elected director may not
91	91	serve consecutive terms.
92	92	Sec. 372.206. LOCAL FUNDING. (a) A municipality shall
93	93	transfer annually to the management organization of an affected
94	94	district located in the municipality an amount of money equal to the
95	95	revenue collected through an existing special assessment on
96	96	properties located in the district over the previous municipal
97	97	fiscal year.
98	98	(b) A county shall transfer annually to the management
99	99	organization of an affected district located in the county an
100	100	amount of money equal to one half of the amount described by
101	101	Subsection (a).
102	102	(c) A municipality or county may not change the rate of an
103	103	assessment in response to a transfer of money under this section.
104	104	Sec. 372.207. STATE FUNDING. A management organization is
105	105	eligible to receive state funding for the purpose of implementing
106	106	supplemental services as described by Section 372.208.
107	107	Sec. 372.208. USE OF MONEY FOR SUPPLEMENTAL SERVICES. (a)
108	108	Except as provided by Subsection (b), a management organization may
109	109	only use money allocated to the management organization under this
110	110	subchapter for the following supplemental services, in order of
111	111	priority:
112	112	(1) eliminating crime;
113	113	(2) eliminating vagrancy;
114	114	(3) improving cleanliness;
115	115	(4) increasing beautification; and
116	116	(5) implementing other projects to improve the public
117	117	improvement district.
118	118	(b) An affected district may only use money appropriated to
119	119	the management organization under Section 372.207 for:
120	120	(1) eliminating crime; and
121	121	(2) eliminating vagrancy.
122	122	Sec. 372.209. ENFORCEMENT. (a) An owner of real property
123	123	located in an affected district may bring an action against a
124	124	management organization to seek injunctive relief or specific
125	125	performance in a district court to enforce compliance with any
126	126	applicable law or the governing documents of the management
127	127	organization. A property owner is not entitled to money damages in
128	128	an action under this section.
129	129	(b) A court shall award reasonable attorney's fees and court
130	130	costs incurred in bringing an action under this section to a
131	131	prevailing claimant.
132	132	SECTION 3. This Act takes effect September 1, 2025.