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HB5677 • 2025

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.

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.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Cole
Last action
2025-06-20
Official status
06/20/2025 E See remarks for effective date
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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.

Relating to the creation of the Pura Vida Municipal Management District No.

What This Bill Does

  • 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.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-06-20 Texas Legislature Online

    Filed without the Governor's signature

  2. 2025-06-20 Texas Legislature Online

    See remarks for effective date

  3. 2025-06-02 Texas Legislature Online

    Sent to the Governor

  4. 2025-06-01 Texas Legislature Online

    Signed in the House

  5. 2025-06-01 Texas Legislature Online

    Signed in the Senate

  6. 2025-05-31 Texas Legislature Online

    Reported enrolled

  7. 2025-05-30 Texas Legislature Online

    House concurs in Senate amendment(s)

  8. 2025-05-30 Texas Legislature Online

    Record vote. RV#4076

  9. 2025-05-30 Texas Legislature Online

    Statement(s) of vote recorded in Journal

  10. 2025-05-30 Texas Legislature Online

    Text of Senate Amendment(s)

  11. 2025-05-30 Texas Legislature Online

    House concurs in Senate amendment(s)-reported

  12. 2025-05-29 Texas Legislature Online

    Senate passage as amended reported

  13. 2025-05-29 Texas Legislature Online

    Senate Amendments distributed

  14. 2025-05-29 Texas Legislature Online

    Senate Amendments Analysis distributed

  15. 2025-05-28 Texas Legislature Online

    Placed on local & uncontested calendar

  16. 2025-05-28 Texas Legislature Online

    Laid before the Senate

  17. 2025-05-28 Texas Legislature Online

    Read 2nd time & passed to 3rd reading

  18. 2025-05-28 Texas Legislature Online

    Vote recorded in Journal

  19. 2025-05-28 Texas Legislature Online

    Three day rule suspended

  20. 2025-05-28 Texas Legislature Online

    Record vote

  21. 2025-05-28 Texas Legislature Online

    Read 3rd time

  22. 2025-05-28 Texas Legislature Online

    Passed

  23. 2025-05-28 Texas Legislature Online

    Record vote

  24. 2025-05-23 Texas Legislature Online

    Reported favorably as substituted

  25. 2025-05-23 Texas Legislature Online

    Recommended for local & uncontested calendar

  26. 2025-05-23 Texas Legislature Online

    Committee report printed and distributed

  27. 2025-05-22 Texas Legislature Online

    Posting rule suspended

  28. 2025-05-22 Texas Legislature Online

    Scheduled for public hearing on . . .

  29. 2025-05-22 Texas Legislature Online

    Considered in public hearing

  30. 2025-05-22 Texas Legislature Online

    Vote taken in committee

  31. 2025-05-21 Texas Legislature Online

    Read first time

  32. 2025-05-21 Texas Legislature Online

    Referred to Local Government

  33. 2025-05-19 Texas Legislature Online

    Received from the House

  34. 2025-05-16 Texas Legislature Online

    Placed on Local, Consent, and Res. Calendar

  35. 2025-05-16 Texas Legislature Online

    Read 2nd time

  36. 2025-05-16 Texas Legislature Online

    Passed to engrossment

  37. 2025-05-16 Texas Legislature Online

    Nonrecord vote recorded in Journal

  38. 2025-05-16 Texas Legislature Online

    Read 3rd time

  39. 2025-05-16 Texas Legislature Online

    Passed

  40. 2025-05-16 Texas Legislature Online

    Record vote. RV#2818

  41. 2025-05-16 Texas Legislature Online

    Nonrecord vote recorded in Journal

  42. 2025-05-16 Texas Legislature Online

    Reported engrossed

  43. 2025-05-13 Texas Legislature Online

    Considered in Local & Consent Calendars

  44. 2025-05-12 Texas Legislature Online

    Comte report filed with Committee Coordinator

  45. 2025-05-12 Texas Legislature Online

    Committee report distributed

  46. 2025-05-12 Texas Legislature Online

    Comm. report sent to Local & Consent Calendar

  47. 2025-05-10 Texas Legislature Online

    Considered in formal meeting

  48. 2025-05-10 Texas Legislature Online

    Vote reconsidered in committee

  49. 2025-05-10 Texas Legislature Online

    Committee substitute considered in committee

  50. 2025-05-10 Texas Legislature Online

    Recommended to be sent to Local & Consent

  51. 2025-05-10 Texas Legislature Online

    Reported favorably as substituted

  52. 2025-05-09 Texas Legislature Online

    Recommendations filed with the Speaker

  53. 2025-04-30 Texas Legislature Online

    Considered in formal meeting

  54. 2025-04-30 Texas Legislature Online

    Committee substitute considered in committee

  55. 2025-04-30 Texas Legislature Online

    Reported favorably as substituted

  56. 2025-04-29 Texas Legislature Online

    Scheduled for public hearing on . . .

  57. 2025-04-29 Texas Legislature Online

    Considered in public hearing

  58. 2025-04-29 Texas Legislature Online

    Committee substitute considered in committee

  59. 2025-04-29 Texas Legislature Online

    Testimony taken/registration(s) recorded in committee

  60. 2025-04-29 Texas Legislature Online

    Left pending in committee

  61. 2025-04-17 Texas Legislature Online

    Read first time

  62. 2025-04-17 Texas Legislature Online

    Referred to Intergovernmental Affairs

  63. 2025-04-16 Texas Legislature Online

    Transmitted to the Governor

  64. 2025-04-14 Texas Legislature Online

    Filed

Official Summary Text

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.

Current Bill Text

Read the full stored bill text
89(R) HB 5677 - Enrolled version - Bill Text

H.B. No. 5677

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. Subject to the limitations

provided by Section 54.209, Water Code, 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.

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 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.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 5677 was passed by the House on May

16, 2025, by the following vote: Yeas 82, Nays 49, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 5677 on May 30, 2025, by the following vote: Yeas 89, Nays 48,

2 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 5677 was passed by the Senate, with

amendments, on May 28, 2025, by the following vote: Yeas 27, Nays

4.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor