All Roll Calls
Yes: 105 • No: 48
TexasHB 567789th Legislature Regular SessionHouseWALLET
Relating to the creation of the Pura Vida Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.
Sponsored By: Sheryl Cole, Judith Zaffirini (Democratic)
Became Law
PURA VIDA MUNICIPAL MANAGEMENT DISTRICT NO. 1Special Districts & Authorities--MiscellaneousENVIRONMENTAL QUALITY, TEXAS COMMISSION ON
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Bill Overview
Analyzed Economic Effects
12 provisions identified: 1 benefits, 3 costs, 8 mixed.
Voter-approved bonds require ongoing property taxes
District voters must approve bonds backed wholly or partly by property taxes. Once those bonds are issued, the board must levy a yearly property tax while any remain outstanding. The law places no rate or amount limit on that debt-repayment tax. Before the first such bond issue, each municipality containing district land must consent to district creation and land inclusion.
Property-taking power depends on legislative vote
The law ties the district’s power to take property through eminent domain to the legislative vote on the act. Limited authority applies only with approval as a special local law by two-thirds of each legislative chamber. That authority follows Water Code Section 49.222 and is subject to Section 54.209. Otherwise, the law expressly prohibits the district from using eminent domain. The supplied information does not establish whether the required vote occurred.
District businesses gain access to development support
The district can create programs that support local business through public loans, grants, staff, and services. These powers are not limited to small businesses, and the law sets no funding amount. All or part of the district is eligible for tax-increment or tax-abatement reinvestment zones. Separate action under state law is required to create a zone or grant a tax break.
District shoppers face voter-approved sales taxes
The district must hold an election to adopt a sales and use tax. Adoption, reduction, or repeal requires a majority of votes cast. The initial district rate is 2%, or the highest rate keeping combined local sales and use taxes at each location within 2%. A matching use tax covers taxable items used, stored, or consumed in the district. Changes start on the first day of the first calendar quarter after the comptroller receives the required resolution.
District voters control operating property taxes
The district can levy a property tax for operations, maintenance, improvements, and services only after majority voter approval. Approval requires a majority of district voters who vote in the election. The board sets the rate, but cannot exceed the rate voters approve. The law sets no tax rate or household bill.
Property assessments require majority owner support
Assessment-funded services or improvements require a written petition from owners holding a majority of district real-property value subject to assessment. That value comes from the latest certified county appraisal roll. Board-approved assessments become owners’ personal debts, even when owners are not named in the proceedings, and liens on assessed property. Those liens rank ahead of most others, except county, school district, and municipal property-tax liens. The board can correct or delete assessment records without notice or a hearing only when no parcel’s assessment increases.
Local services expand with possible user charges
The district can build, fund, and run streets, water systems, drainage, recreation areas, parking, and related improvements using available money. It can charge service and parking fees, but the law sets no prices. Mustang Ridge must maintain at least its existing service level; district services add to, rather than replace, city services. The district can pay qualified providers, including the city, for extra law enforcement. It can contract with public or private groups and use a nonprofit to carry out projects, including privately operated parking.
New Pura Vida district serves local properties
The law creates Pura Vida Municipal Management District No. 1 in Travis County, near Mustang Ridge along U.S. Highway 183. Its initial boundaries cover 211.348 acres across eight tracts. The district can support local development and services, with authority to issue bonds and impose taxes, assessments, and fees. The act takes effect immediately with approval by two-thirds of all elected members of each legislative chamber; otherwise, September 1, 2025.
Owners can seek district closure
The board must dissolve the district after a written petition from owners meeting either two-thirds threshold. Owners must represent at least two-thirds of assessed value subject to assessment or two-thirds of eligible district surface area. The board can also dissolve the district by majority vote. Closure is barred until bond debt is repaid or legally defeased and contractual payment obligations are fully paid. Any district public works must have another party arranged to take over ownership, operation, or maintenance before closure.
Residents elect paid district board members
A five-member elected board runs the district, with staggered four-year terms. Owners holding a majority of assessed property value can petition the Texas Commission on Environmental Quality to appoint five temporary directors. Temporary directors call permanent-board elections and can serve, including through reappointment, only through the act’s fourth anniversary. Directors may receive up to $150 per meeting, capped at $7,200 each year. The district must also reimburse necessary and reasonable expenses for board duties.
District boundaries can change or split
The district can add or remove land through state Water Code procedures, changing access to services and exposure to charges. It can split only with no outstanding bond debt and no property tax being imposed. The board can initiate division or act on a petition from owners holding a majority of assessed real-property value. New districts must stay within the act’s described territory and divide the original district’s assets and liabilities. Each new district needs an election before imposing a maintenance tax or issuing property-tax-backed bonds.
District can borrow against local funds
The district can sell bonds, notes, and other debt publicly or privately for authorized district purposes. Repayment sources include property taxes, assessments, impact fees, revenue, contract payments, grants, and other district money. The usual outstanding-principal limit in Water Code Section 49.4645 does not apply. Bonds backed by revenue other than property taxes do not require an election. Contract-payment bonds also require compliance with Water Code Section 49.108.
Sponsors & Cosponsors
Sponsors
Sheryl Cole
House
Judith Zaffirini
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/30/2025
Record vote
Yes: 89 • No: 48
Senate vote • 5/28/2025
Record vote
Yes: 0 • No: 0
Senate vote • 5/28/2025
Record vote
Yes: 0 • No: 0
House vote • 5/16/2025
Record vote
Yes: 0 • No: 0
Senate vote • Unknown
Committee vote: Local Government
Yes: 6 • No: 0 • Other: 1
House vote • Unknown
Committee vote: Intergovernmental Affairs
Yes: 10 • No: 0
Actions Timeline
See remarks for effective date
6/20/2025HouseFiled without the Governor's signature
6/20/2025HouseSent to the Governor
6/2/2025HouseSigned in the Senate
6/1/2025SenateSigned in the House
6/1/2025HouseReported enrolled
5/31/2025HouseHouse concurs in Senate amendment(s)-reported
5/30/2025SenateText of Senate Amendment(s)
5/30/2025HouseStatement(s) of vote recorded in Journal
5/30/2025HouseRecord vote (RV#4076)
5/30/2025HouseHouse concurs in Senate amendment(s)
5/30/2025HouseSenate Amendments Analysis distributed
5/29/2025HouseSenate Amendments distributed
5/29/2025HouseSenate passage as amended reported
5/29/2025HouseRecord vote
5/28/2025SenatePassed
5/28/2025SenateRead 3rd time
5/28/2025SenateRecord vote
5/28/2025SenateThree day rule suspended
5/28/2025SenateVote recorded in Journal
5/28/2025SenateRead 2nd time & passed to 3rd reading
5/28/2025SenateLaid before the Senate
5/28/2025SenatePlaced on local & uncontested calendar
5/28/2025SenateCommittee report printed and distributed
5/23/2025SenateRecommended for local & uncontested calendar
5/23/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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