HB4078 - Relating to public improvement districts located in certain municipalities.

      By: Leach H.B. No. 4078       A BILL TO BE ENTITLED   AN ACT   relating to public improvement districts located in certain   municipalities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 372, Local Government Code, is amended   by adding Subchapter E to read as follows:   SUBCHAPTER E. DOWNTOWN IMPROVEMENT DISTRICTS IN CERTAIN   MUNICIPALITIES           Sec.   372.201.     APPLICABILITY; CONTINUED SERVICES. (a) This   subchapter applies to a municipality with a population between   900,000 and 2,000,000, according to the most recent decennial   census that as of January 1, 2025 had created a public improvement   district located in the municipality's downtown area or central   business district and to a county in which such municipality is   located.           (b)     This subchapter applies only to the largest public   improvement district located in a municipality's downtown area or   central business district that existed as of January 1, 2025.           (c)     This subchapter may not be interpreted to relieve any   municipality or county from providing services to an area included   in a district or to release the municipality or county from the   obligation it has to provide municipal or county services to that   area. A public improvement district recognized under this   subchapter is intended to supplement and not supplant municipal and   county services in the area of the district.           Sec.   372.202.     PERPETUAL EXISTENCE. Notwithstanding any   other law, a public improvement district located in a   municipality's downtown area or central business district and   subject to this subchapter shall exist in perpetuity and shall not   terminate except by Act of the Legislature.           Sec.   372.203.     CONTRACT WITH MANAGEMENT ORGANIZATION. (a)   In this subchapter, a "management organization" means a nonprofit   organization that is contracted to implement supplemental services   and improvements in a public improvement district subject to this   subchapter. A management organization shall be an eligible   management organization, as defined by section 372.204.           (b)     A municipality subject to this subchapter shall   contract with a management organization to implemental   supplemental services and improvements in a public improvement   district subject to this subchapter.           (c)     The municipality shall delegate full authority to the   management organization to oversee and manage the implementation of   supplemental services and improvements in the public improvement   district, including the receipt, handling, and use of funds   collected pursuant to this subchapter, exclusively for the   priorities defined in Section 372.006.           (d)     A management organization shall be considered a   "governmental body" for purposes of Chapter 552, Government Code.           Sec.   372.204.     ELIGIBLE MANAGEMENT ORGANIZATIONS (a) A   municipality may not contract with a management organization   pursuant to section 372.203 unless the management organization is   an eligible management organization, as defined by subsection (b).           (b)     An "eligible management organization" means a nonprofit   organization that has provisions in its articles of incorporation,   certificate of formation, bylaws, or other governing documents   which provide for the following requirements:                 (1)     the organization's governing board is composed of   seven directors,                 (2)     directors serve staggered four year terms; however   three directors selected at random may be designated to serve an   initial two-year term in order to implement this provision,                 (3)     one director is appointed by the municipality in   which the public improvement district is located,                 (4)     one director is appointed by the county in which   the public improvement district is located,                 (5)     one director is appointed by the Governor of the   State of Texas,                 (6)     one director is appointed by the Lieutenant   Governor of the State of Texas,                 (7)     one director is appointed by the Speaker of the   Texas House of Representatives, and                 (8)     two directors are elected by the ten largest   owners of assessed property value, excluding exempt property,   located in the public improvement district, through means of   election specified by the organization's governing documents; such   elected directors shall be ineligible to serve consecutive terms.           Sec.   372.005.     ADDITIONAL FUNDING REQUIREMENT. (a) A   municipality subject to this subchapter and the State of Texas   through a general appropriations act, shall each appropriate to a   management organization described by this subchapter an amount   equal to the revenue collected through an existing special   assessment of properties located in the district.           (b)     A county subject to this subchapter shall appropriate to   a management organization described by this subchapter an amount   equal to one half of the revenue collected through an existing   special assement of properties located in the district.           (c)     The funding requirements under subsection (a) and (b)   shall be appropriated in addition to the revenue collected through   existing special assessments imposed in the public improvement   district.           (d)     A municipality or county subject to this subchapter   which imposes and collects a special assessment in a public   improvement district that is subject to this subchapter shall not   change the rate of the assessment that was assessed on January 1,   2025.           Sec.   372.006.     PRIORITIES. (a) Under this section,   "vagrancy" means the habitual act of loitering, begging,   panhandling, scavenging, camping, sleeping, or otherwise remaining   idle for extended periods of time in a public place without a lawful   purpose.           (b)     A management organization described by this subchapter   shall prioritize spending of assessed or appropriated funds on   supplemental services in order of priority of (i) eliminating   crime, (ii) eliminating vagrancy, (iii) improving cleanliness,   (iv) beautification, and (v) other projects to improve the   district.           (c)     Appropriations to a management organization by the   State described by this subchapter and received under Section   372.005(a) shall be used exclusively for the purposes of   eliminating crime and vagrancy.           Sec.   372.007.     ENFORCEMENT. (a) An owner of property   located in a public improvement district subject to this subchapter   shall have standing to sue a management organization described by   this subchapter to seek injunctive relief or specific performance   in a district court to enforce compliance with this subchapter,   other state law, or the management organization's governing   documents. A property owner shall not be entitled to money damages   in a suit under this section.           (b)     A property owner who substantially prevails in a suit   brought pursuant to subsection (a) shall be entitled to costs of   court and reasonable attorney's fees.           (c)     Sovereign and governmental immunity to suit and   liability is abolished and waived to the extent of liability under   this section.          SECTION 2.  This Act takes effect September 1, 2025.