TexasHB 568089th Legislature Regular SessionHouseWALLET

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

Sponsored By: Janis Holt, Robert Nichols (Republican)

Became Law

BAYOU BELLE MUNICIPAL MANAGEMENT DISTRICT NO.1LIBERTY COUNTYSpecial Districts & Authorities--MiscellaneousENVIRONMENTAL QUALITY, TEXAS COMMISSION ON

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 3 benefits, 3 costs, 3 mixed.

District cannot force property takings

The law expressly prohibits the district from exercising eminent domain. The district cannot use that power to force owners to give up property.

Property owners face assessments and liens

The board can charge assessments on property in all or part of the district by resolution. Assessment-funded services or improvements require a written petition from owners holding a majority of the assessed property value. That value comes from the county's latest certified tax appraisal roll. Owners personally owe assessments, penalties, interest, collection costs, and reasonable attorney fees, even when not named in the proceeding. These charges create liens lasting until paid, ahead of all liens except county, school district, and municipal property taxes. After notice and a hearing, the board can correct or delete assessment entries, but cannot increase the assessment amount.

District bonds can require continuing taxes

The district can borrow and issue bonds or other debt for authorized purposes. Repayment can use taxes, assessments, impact fees, revenues, contract payments, grants, or other district money, alone or combined. Property-tax-backed bonds require voter approval and an annual property tax with no rate or amount limit while bonds remain outstanding. Revenue-backed bonds can be issued without an election; contract-backed bonds must meet state Water Code requirements. Before bonds are issued, each municipality whose city limits or extraterritorial jurisdiction includes district land must consent to district creation and land inclusion.

District upkeep taxes need voter approval

The district can tax taxable property to pay for operations, maintenance, improvements, and services. A majority of district voters voting in an election must approve this tax. The board sets the rate, but cannot exceed the rate voters approved. The law does not set a tax rate or household bill.

New district serves Liberty County residents

The law creates Bayou Belle Municipal Management District No. 1 in Liberty County, Texas. Its initial territory covers 605.3082 acres in the Julianna Malley League, Abstract No. 71. The district can support development and local improvements, but must add to—not replace—county services. Liberty County must keep the service level it provided when the law took effect. The law took effect immediately if it received two-thirds support from all elected members of each legislative house. Otherwise, it took effect September 1, 2025.

District can offer business development help

The district can offer public loans, grants, staff, and services to support business and commercial activity. It can use specified municipal economic development powers, but no program or funding amount is required. District land is eligible for tax increment and tax abatement reinvestment zones. This eligibility does not itself create a zone or grant a tax break.

District can add services and fees

The district can build, finance, and run authorized infrastructure, water, recreation, landscaping, and other local improvements. It can charge service fees and pay qualified providers, including the county or a local municipality, for law enforcement. It can build or run parking lots and garages, including through private leases or operators; parking prices are not set. The board can contract with public or private groups and create a nonprofit whose directors it appoints; they need not live locally. The district can also pay dues to charities or nonprofits whose work supports district purposes.

District voters elect a paid board

District voters elect five directors who serve staggered four-year terms under state water district election rules. Initial directors are Dez Carlson, Remard Mason, Kye Sampson, Anthony Hernandez, and Kyle Clarke. Initial terms for positions 1–3 end June 1, 2027; positions 4–5 end June 1, 2029. The district can pay each director up to $150 per meeting, capped at $7,200 per year. It can also repay necessary and reasonable work expenses.

Owners can seek district dissolution

Land can be added or removed through state Water Code procedures. The board can divide the district only with no outstanding bond debt and no property tax being imposed. Division can start with the board or owners holding a majority of assessed real-property value; new districts stay within the original territory. Division requires mapped boundaries, initial directors, asset and debt allocation, state filing, and recording; new districts inherit the powers. New districts need voter approval before maintenance taxes or property-tax-backed bonds. The board must dissolve the district after an owner petition representing a majority of assessed value subject to assessment or qualifying land area, excluding specified public, tax-exempt, and rights-of-way areas; it can also vote to dissolve. Dissolution requires bond debt to be repaid or legally set aside, contract payments completed, and agreements covering any district-owned or operated public facilities.

Sponsors & Cosponsors

Sponsors

  • Janis Holt

    House

  • Robert Nichols

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 292 • No: 53

House vote • 5/29/2025

Record vote

Yes: 90 • No: 47

Senate vote • 5/26/2025

Record vote

Yes: 28 • No: 3

Senate vote • 5/26/2025

Record vote

Yes: 28 • No: 3

Senate vote • 5/26/2025

Record vote

Yes: 0 • No: 0

House vote • 5/16/2025

Record vote

Yes: 131 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • No: 0 • Other: 1

House vote • Unknown

Committee vote: Intergovernmental Affairs

Yes: 9 • No: 0 • Other: 1

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

    5/29/2025Senate
  8. Text of Senate Amendment(s)

    5/29/2025House
  9. Statement(s) of vote recorded in Journal

    5/29/2025House
  10. Record vote (RV#4021)

    5/29/2025House
  11. House concurs in Senate amendment(s)

    5/29/2025House
  12. Senate Amendments Analysis distributed

    5/27/2025House
  13. Senate Amendments distributed

    5/27/2025House
  14. Senate passage as amended reported

    5/26/2025House
  15. Record vote

    5/26/2025Senate
  16. Passed

    5/26/2025Senate
  17. Read 3rd time

    5/26/2025Senate
  18. Record vote

    5/26/2025Senate
  19. Three day rule suspended

    5/26/2025Senate
  20. Record vote

    5/26/2025Senate
  21. Read 2nd time & passed to 3rd reading

    5/26/2025Senate
  22. Rules suspended-Regular order of business

    5/26/2025Senate
  23. Placed on intent calendar

    5/26/2025Senate
  24. Committee report printed and distributed

    5/23/2025Senate
  25. Recommended for local & uncontested calendar

    5/23/2025Senate

Bill Text

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