H.B. No. 5696 establishes The Reserve Municipal Management District in Texas, which is tasked with promoting economic development, employment, and public welfare in the City of Mansfield. The bill introduces Chapter 4026 to the Special District Local Laws Code, granting the district the authority to issue bonds and impose assessments, fees, and taxes. It emphasizes that the district is meant to supplement city services rather than replace them, and outlines its governance structure, which includes a board of five elected directors serving staggered four-year terms. The district is empowered to engage in economic development programs, construct and maintain public facilities, and create a nonprofit corporation to assist in its objectives.

Additionally, the bill provides for the creation and management of new districts through the division of existing ones, ensuring that any new district inherits the powers and duties of the original. It mandates that a written petition from property owners is required for financing services and improvements, and establishes that assessments will create a lien against properties. The bill also requires voter approval for ad valorem taxes and outlines conditions for issuing bonds and dissolving the district. It includes a detailed description of the land parcel involved and specifies that the bill 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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