H.B. No. 5686 establishes the Montgomery County Management District No. 3, a special district aimed at promoting economic development and enhancing public welfare by providing essential services like water, wastewater, drainage, and recreational facilities. The district is intended to supplement existing services from Montgomery County and the cities of Conroe and Willis, ensuring that these entities remain responsible for their service obligations. Importantly, the district will not possess the power of eminent domain. The bill also outlines the governance structure, granting a board of directors the authority to issue bonds and impose assessments, fees, and taxes to fund district operations, while requiring a written petition from property owners for financing services or improvements.

The legislation introduces new provisions for the assessment and collection of taxes and fees, mandating that a petition for assessments must be signed by property owners representing a majority of the assessed value in the district. It allows for the adoption of a sales and use tax, contingent upon voter approval, and specifies procedures for its implementation. Additionally, the bill addresses the division of existing districts into new ones, requiring confirmation elections and voter approval for tax imposition or bond issuance. It also outlines the process for defining specific areas for improvements, the election procedures for these areas, and the conditions under which a district can be dissolved, ensuring community involvement and financial accountability throughout the district's operations.

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