H.B. No. 5677 establishes the Pura Vida Municipal Management District No. 1 in Texas, which is empowered to issue bonds, impose assessments, fees, and taxes, and exercise limited eminent domain powers. The bill introduces Chapter 4013 to the Special District Local Laws Code, detailing the district's definitions, purposes, and governance structure aimed at promoting economic development and providing essential services such as water, wastewater, drainage, and recreational facilities. The governance will be managed by a board of five elected directors serving staggered four-year terms, and the district may create a nonprofit corporation to assist in project implementation. The bill also outlines the authority regarding the acquisition and maintenance of parking facilities, which are considered public assets, and establishes procedures for fund disbursements, land management, and district division.

Additionally, the bill introduces a two percent sales and use tax on retail sales within the district and allows the district to manage this tax similarly to a municipality. It mandates that property owners must submit a written petition for financing projects through assessments and requires elections for imposing ad valorem taxes or issuing bonds. The bill specifies conditions for the dissolution of the district, including a requirement for a petition from owners representing at least two-thirds of the assessed property value or surface area, and it prohibits the district from exercising the power of eminent domain. The act will take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if not.

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