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TexasHB 565889th Legislature Regular SessionHouse

Relating to the creation of the Craver Ranch Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments and fees; granting a limited power of eminent domain.

Sponsored By: Brent Hagenbuch (Republican), Jared Patterson

Became Law

CRAVER RANCH MUNICIPAL MANAGEMENT DISTRICT NO. 1DENTON, CITY OFSpecial Districts & Authorities--Miscellaneous

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 3 benefits, 0 costs, 7 mixed.

District borrowing can use owner assessments

The district can borrow and issue bonds or notes for authorized purposes, using assessments or other district money for repayment. Revenue-backed or contract-payment-backed bonds do not require an election. Before the first bond issue, each municipality containing district land within its limits or surrounding jurisdiction must consent. Assessment-funded improvements destined for municipal or retail utility ownership or operation require an agreement before obligations are issued. Contract-payment-backed bonds must follow the Water Code's requirements.

Land-taking power depends on legislative vote

The law ties the district's power to take private land to the vote on the Act. A two-thirds vote of all elected members in each legislative house activates limited eminent-domain authority and immediate effectiveness. That authority follows Water Code Sections 49.222 and 54.209. Without that vote, the district is barred from using eminent domain, and the Act took effect September 1, 2025. The supplied provisions do not report which vote threshold was reached.

Property assessments carry strong lien rights

The district can charge property assessments, and the usual residential-property exemption does not apply. Assessment-funded projects require a written petition from owners representing more than half the assessed value subject to assessment. That value comes from the county's latest certified tax appraisal roll. Assessments, penalties, interest, collection costs, and reasonable attorney fees become personal debts secured by property liens from the assessment resolution until paid. These liens rank ahead of all except county, school, and city property-tax liens and are enforceable like tax liens. The board cannot increase a parcel's assessment without required notice and a hearing.

District cannot levy property taxes

The district cannot impose an ad valorem tax—a property tax based on property value. This ban does not prevent district assessments or fees.

New elected district serves Craver Ranch

The law creates Craver Ranch Municipal Management District No. 1, covering 2,801.468 acres in Sanger, Denton County. Five elected directors govern the district and serve staggered four-year terms. The law names initial directors to serve until permanent directors are elected or four years pass, whichever comes first.

District gains business support tools

The district can offer loans, grants, staff, and services to promote economic development and business activity. It can use nonprofit or local government corporations to carry out projects. All or part of the district is eligible for tax increment or tax abatement reinvestment zones. The law does not create a zone, grant a tax break, or guarantee assistance to any business.

Development agreement controls district powers

The district cannot use its powers until the City of Denton and its primary landowner sign a development agreement. That agreement must add development standards beyond applicable city ordinances. After September 1, 2030, the board must dissolve the district upon the city's written request if no agreement is signed.

District boundaries can change or divide

The district can add or remove land under Water Code procedures, changing which properties fall under district authority. It can divide only when it has no outstanding bond debt. The board can start a division, or owners representing a majority of assessed property value can petition for one. New districts cannot extend beyond the original territory; the division order must set boundaries, appoint directors, and allocate assets and liabilities. Within 30 days, the order must be filed with the state environmental agency and recorded in each affected county.

Owners can petition to dissolve district

Owners can require dissolution through a written petition representing two-thirds of assessable property value or two-thirds of eligible surface area. The land-area count excludes roads, rights-of-way, public areas, and exempt land. The board can also vote to dissolve by a majority. Before dissolution, debt must be repaid or legally settled, and contractual payment obligations must be fully paid. District-owned or operated public works responsibilities must be transferred by contract.

District gains infrastructure and parking powers

Once the required development agreement is signed, the district can build, finance, and run authorized infrastructure and services. Projects can include streets, water, wastewater, drainage, recreation, and parking, with public or private partners. Parking facilities remain public-purpose improvements even when privately leased or operated, and the district can charge parking fees. The City of Denton must maintain at least its service level from the law's effective date. District services add to city services rather than replace them.

Sponsors & Cosponsors

Sponsors

  • Brent Hagenbuch

    Republican • Senate

  • Jared Patterson

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 246 • No: 52

House vote • 5/30/2025

Record vote

Yes: 85 • No: 52

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

House vote • 5/7/2025

Record vote

Yes: 148 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • No: 0 • Other: 1

House vote • Unknown

Committee vote: Land & Resource Management

Yes: 7 • No: 0

Actions Timeline

  1. See remarks for effective date

    6/20/2025House

  2. Filed without the Governor's signature

    6/20/2025House

  3. Sent to the Governor

    6/1/2025House

  4. Signed in the Senate

    6/1/2025Senate

  5. Signed in the House

    5/31/2025House

  6. Reported enrolled

    5/30/2025House

  7. House concurs in Senate amendment(s)-reported

    5/30/2025Senate

  8. Text of Senate Amendment(s)

    5/30/2025House

  9. Statement(s) of vote recorded in Journal

    5/30/2025House

  10. Record vote (RV#4075)

    5/30/2025House

  11. House concurs in Senate amendment(s)

    5/30/2025House

  12. Senate Amendments Analysis distributed

    5/29/2025House

  13. Senate Amendments distributed

    5/29/2025House

  14. Senate passage as amended reported

    5/29/2025House

  15. Record vote

    5/28/2025Senate

  16. Passed

    5/28/2025Senate

  17. Read 3rd time

    5/28/2025Senate

  18. Record vote

    5/28/2025Senate

  19. Three day rule suspended

    5/28/2025Senate

  20. Vote recorded in Journal

    5/28/2025Senate

  21. Read 2nd time & passed to 3rd reading

    5/28/2025Senate

  22. Laid before the Senate

    5/28/2025Senate

  23. Placed on intent calendar

    5/28/2025Senate

  24. Placed on local & uncontested calendar

    5/28/2025Senate

  25. Committee report printed and distributed

    5/23/2025Senate

Bill Text

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