All Roll Calls
Yes: 292 • No: 53
Sponsored By: Janis Holt, Robert Nichols (Republican)
Became Law
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9 provisions identified: 3 benefits, 3 costs, 3 mixed.
The law expressly prohibits the district from exercising eminent domain. The district cannot use that power to force owners to give up property.
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.
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.
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.
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.
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.
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 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.
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.
Janis Holt
House
Robert Nichols
Republican • Senate
There are no cosponsors for this bill.
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
See remarks for effective date
Filed without the Governor's signature
Sent to the Governor
Signed in the Senate
Signed in the House
Reported enrolled
House concurs in Senate amendment(s)-reported
Text of Senate Amendment(s)
Statement(s) of vote recorded in Journal
Record vote (RV#4021)
House concurs in Senate amendment(s)
Senate Amendments Analysis distributed
Senate Amendments distributed
Senate passage as amended reported
Record vote
Passed
Read 3rd time
Record vote
Three day rule suspended
Record vote
Read 2nd time & passed to 3rd reading
Rules suspended-Regular order of business
Placed on intent calendar
Committee report printed and distributed
Recommended for local & uncontested calendar
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
HB 4325, Relating to civil liability for prohibited barratry.
HB 4042, Relating to the applicability of certain safety provisions and regulatory fees administered by the Railroad Commission of Texas to gas distribution pipelines.
HB 3372, Relating to prohibiting certain personal services performed by school district administrators; providing a civil penalty.
HB 2853, Relating to student union building fees at The University of Texas at El Paso.
HB 2518, Relating to the use of installment premium payment plans on Texas Windstorm Insurance Association policies.
HB 1052, Relating to health benefit plan coverage of telemedicine, teledentistry, and telehealth appointments with an originating site or distant site located outside this state.