The bill establishes the Montgomery County Management District No. 3 as a special district under Texas law, aimed at promoting economic development and enhancing public welfare through essential services such as water, wastewater, drainage, and recreational facilities. It will be governed by a board of five directors appointed by the Texas Commission on Environmental Quality, with specific provisions for the initial board members and their terms. The district is authorized to issue bonds and impose assessments, fees, and taxes to fund its operations, while also emphasizing that it will supplement, rather than replace, existing county or city services. Notably, the district is prohibited from exercising the power of eminent domain and requires a written petition from property owners for financing services or improvements through assessments.

Additionally, the bill introduces new provisions for the financing of services and improvements, mandating that a written petition signed by the majority of property owners must be filed before any financing can occur. It outlines the conditions for imposing assessments, which will serve as a first lien against the property, and grants the board authority to enforce these liens. The legislation also details the process for holding elections to impose ad valorem taxes, borrowing money, and issuing bonds, while allowing for the potential division of the district into new districts that retain the original powers. Furthermore, it establishes guidelines for targeted taxation and bond issuance for defined areas within the district and includes provisions for the district's dissolution, ensuring financial obligations are met before any dissolution can occur. The Act will take effect immediately upon a two-thirds vote or on September 1, 2025, if that threshold is not met.

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