HB 5677 creates the Pura Vida Municipal Management District No. 1, a special district in Travis County near the City of Mustang Ridge, and defines its initial boundaries at about 211.348 acres. The bill declares that the district is intended to promote economic development and public welfare by supporting employment, commerce, transportation, housing, tourism, recreation, and related infrastructure. It also states that the district is meant to supplement, not replace, city services in the area.
The district is given broad authority to carry out public improvements and services, including water, wastewater, drainage, road, recreational, parking, pedestrian, landscaping, and economic development projects. It may contract with public or private entities, create a supporting nonprofit corporation, provide additional law enforcement services, and establish economic development programs, including loans and grants. The district may also add or exclude land, and under certain conditions divide into new districts.
HB 5677 also authorizes the district to finance its activities through assessments, ad valorem taxes, sales and use taxes, and bonds. Before imposing assessments or ad valorem taxes, the district must obtain voter approval or, for assessments, a petition from property owners representing a majority of assessed value. The bill allows the district to issue bonds backed by taxes, assessments, revenues, or contract payments, and it provides that the district may be eligible for tax increment reinvestment zones or tax abatement reinvestment zones.
The bill’s impact on state law is to add a new chapter to the Special District Local Laws Code and make Chapter 375, Local Government Code, generally applicable except where the bill provides otherwise. It also creates a governance structure with five elected directors, temporary directors appointed through the Texas Commission on Environmental Quality, and rules for dissolution, financing, and administration. A notable feature is the eminent domain provision: the district may receive limited eminent domain authority only if the bill passes by a two-thirds vote of each house; otherwise, the district is expressly denied that power.
The overall sentiment appears broadly favorable but not unanimous. The bill passed the House initially without opposition, but the House later concurred in Senate amendments by a narrower margin, and the Senate passed the bill with some dissent. That pattern suggests general support for the district’s development and infrastructure goals, alongside some concern about the scope of its powers, especially taxing authority, debt issuance, and eminent domain. The main points of contention are likely the creation of a new special district, the potential burden on property owners through assessments and taxes, and whether the district should have condemnation authority.
The bill amends the Special District Local Laws Code by adding Chapter 4013 to create the Pura Vida Municipal Management District No. 1 and establish its powers, governance, financing tools, and dissolution procedures. It authorizes assessments, ad valorem taxes, sales and use taxes, and bond issuance, and it incorporates or cross-references provisions of the Local Government Code, Water Code, Tax Code, and other statutes. It also affects municipal consent requirements, TCEQ involvement in temporary director appointments, and the district’s eligibility for tax increment and tax abatement reinvestment zones. The bill’s eminent domain provision is conditional: the district may exercise limited eminent domain only if the act receives the constitutionally required two-thirds vote; otherwise, the district has no eminent domain power.
The voting history indicates overall support for the bill’s creation of the district and its development tools, with strong passage in the House and Senate but some opposition on the final House concurrence vote and in the Senate. The absence of committee transcript material limits insight into detailed debate, but the structure of the bill suggests it was viewed as a local economic development and infrastructure measure. The narrower concurrence vote and the conditional eminent domain language indicate that while the district concept was acceptable to many legislators, the scope of its authority was more controversial.
The most notable contention points are the district’s authority to levy taxes and assessments, issue bonds, and potentially exercise eminent domain. Property owners within the district are central stakeholders because many of the district’s financing powers depend on petitions or voter approval, and assessments create liens on property. The City of Mustang Ridge and TCEQ are also relevant actors because municipal consent is required for bond issuance and TCEQ appoints temporary directors. The eminent domain provision is especially sensitive, as the bill explicitly strips that power unless the act passes by a two-thirds vote, signaling legislative concern over condemnation authority.