Bill Caption

Relating to the Driftwood Economic Development Municipal Management District; removing conditions to imposing a tax on residential property.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

HB 2259 seeks to expand the authority of the Driftwood Economic Development Municipal Management District to allow the district to engage in economic development activities and programs. The district would also be granted the authority to issue bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, contract payments, grants, or other district money for any purpose authorized under the chapter. 

HB 2259 repeals the section prohibiting the district from issuing bonds and the section limiting the imposition of a tax on residential property in the district only if the revenue requirements of the district are not satisfied by the other taxes imposed by the board.

The bill also makes administrative changes to the appointment and qualifications of the districts directors. 

Vote Recommendation Notes

HB 2259 would give this management district authority allowing it to promote, development, and stimulate business and commercial activity in the district. This includes the ability to make loans and grants of public money and provide district personnel and services to accomplish this goal.

The Driftwood Economic Development Municipal Management District is a part of a broader class of special districts known as Municipal Management Districts (MMD). This bill would grant municipal-type authority to a non-municipal entity, essentially creating a city within a city that lacks true accountability, which does not bode well towards supporting our liberty principles.

For these reasons, we oppose HB 2259 because it is not the proper role of government to spur economic growth development. The idea that government can and should play such a role in the economy has always been an insidious backdoor towards more government which distorts the marketplace, picks economic winners and losers, and infringes on individual liberty. For these reasons we oppose HB 2259. 

The second chamber sponsor is Sen. Campbell.