The bill, 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 located in municipalities with populations between 900,000 and two million. It introduces a new subchapter that defines key terms such as "affected district," "management organization," and "vagrancy." The bill stipulates that affected districts cannot be dissolved under general law but may be dissolved by special law. It also mandates that municipalities enter into contracts with management organizations to implement supplemental services, which include crime elimination and vagrancy reduction, among others.
Additionally, the bill outlines the governance structure for management organizations, requiring a board of seven directors with staggered terms, composed of both appointed and elected members. Municipalities and counties are required to provide annual funding to these organizations based on special assessments collected in the affected districts. The bill also allows property owners in affected districts to seek legal action against management organizations for compliance issues, with provisions for attorney's fees for prevailing claimants. The act is set to take effect on September 1, 2025.
Statutes affected: Introduced: Local Government Code 372.011 (Local Government Code 372)