HB 1636 Creates new Community Improvement Act
Bill Summary
- Prepared by Senate Research -

SCS/HS/HCS/HB 1636 - This act authorizes the "Community Improvement District Act". The formation of community improvement districts (CIDs) is permitted in counties and cities in first and second classification counties. CIDs create a special benefit district to allow districts to assess and tax themselves for community improvement and services. A petition to create a CID must be approved by the governing body of a city and must specify the size, area, and duration of the district; the maximum rate of taxes which may be imposed; and the method and maximum rate of assessment.

Certain state, not-for-profit, and charitable properties are exempt from assessment, unless they voluntarily participate. Management of the CID is under the direction of a district board, which, depending upon the petition, may be appointed by the chief elected officer of the city, with the consent of the governing body, or elected by qualified voters of the district. CIDs are required to have the consent of the governing body before executing any of their powers.

District projects may include public capital improvements, certain private capital improvements, and special services. Municipalities in which a CID is located may not establish a minimum wage that exceeds the state minimum wage. The petition may also specify maximum borrowing authority, types of services supported, eligible use of funds, and other limitations.
RUSS HEMBREE

SA 1 - PROHIBITS ASSESSMENTS OR TAXES, BY CIDS WHICH ARE POLITICAL SUBDIVISIONS, ON PROPERTY OF ANY CITY, COUNTY OR OTHER POLITICAL SUBDIVISION, UNLESS IT CHOOSES TO VOLUNTARILY PARTICIPATE IN THE CID.

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