S.B. No. 2594 amends the Local Government Code to establish regulations for the provision of supplemental services by management organizations in certain public improvement districts within municipalities that have populations between 900,000 and two million. The bill introduces a new subchapter that defines key terms such as "affected district," "management organization," and "vagrancy." It mandates that municipalities enter into contracts with management organizations to implement supplemental services and improvements, while also ensuring that the governing bodies of these organizations are composed of appointed and elected directors. Additionally, the bill stipulates that affected districts cannot be dissolved under general law but may be dissolved by special law.

The legislation also outlines the funding mechanisms for these management organizations, requiring municipalities and counties to transfer funds based on special assessments collected in the affected districts. It specifies that the funds can only be used for prioritized services such as crime elimination and cleanliness improvement. Furthermore, property owners in affected districts are granted the right to seek injunctive relief against management organizations for compliance issues, although they are not entitled to monetary damages. The bill is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Local Government Code 372.011 (Local Government Code 372)