H.B. No. 5677 establishes the Pura Vida Municipal Management District No. 1 in Texas, granting it various powers including the ability to issue bonds, impose assessments, fees, and taxes, and exercise limited eminent domain. The bill adds 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, and the district may create a nonprofit corporation to assist in its projects. It also allows for the engagement in economic development programs and law enforcement services.

The bill introduces a two percent sales and use tax on retail sales within the district and outlines the process for the district's dissolution, requiring a petition from property owners representing at least two-thirds of the assessed value. Notably, the district may not exercise the power of eminent domain, and it cannot be dissolved if it has outstanding bonded indebtedness. The act will take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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