H.B. No. 5680 establishes the Bayou Belle Municipal Management District No. 1 as a special district under Texas law, specifically adding Chapter 4021 to the Special District Local Laws Code. The district is created to promote public purposes such as economic development, transportation, and public welfare, while ensuring it supplements rather than replaces county services. The bill grants the district powers to issue bonds, impose assessments, and provide essential services, including water and recreational facilities. It also allows for the creation of a nonprofit corporation to assist in implementing district projects. Governance will be managed by a board of five elected directors serving staggered four-year terms, with specified compensation and procedures for fund disbursements. A significant provision of the bill is the introduction of Sec. 4021.0311. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. This prohibits the district from taking private property for public use without the owner's consent. The bill also outlines the process for creating new districts from existing ones, including the requirement for elections to impose taxes or issue bonds. Additionally, it mandates that assessments must be supported by a written petition from property owners representing a majority of the assessed value. The bill will take effect immediately with a two-thirds vote from both houses or on September 1, 2025, if that majority is not achieved.

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