H.B. No. 1532 establishes the Lake Houston Dredging and Maintenance District, which is a conservation and reclamation district created to perform dredging and maintenance operations in specified areas, including Lake Houston and parts of the San Jacinto River. The bill amends the Special District Local Laws Code to include provisions for the district's governance, defining its board of directors, which will consist of five members appointed by various local authorities. The district is granted the authority to issue revenue bonds to fund its operations and is prohibited from imposing taxes or fees.

The bill outlines the specific powers and duties of the district, including the ability to enter into interlocal agreements for dredging operations and to take materials like sand and gravel from the service area without needing permits or fees. It also mandates that the district must obtain approval from the City of Houston Public Works before conducting operations in Lake Houston and ensures that such operations do not negatively impact water quality. The district's financial provisions include a cap on state funding appropriations, which cannot exceed $25 million per fiscal year, and it specifies that no funding will be provided after September 1, 2027.

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