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TexasHB 568289th Legislature Regular SessionHouse

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

Sponsored By: Angela Paxton (Republican), Keresa Richardson

Became Law

COLMENA RANCH MUNICIPAL MANAGEMENT DISTRICT NO. 1COLLIN COUNTYSpecial Districts & Authorities--Miscellaneous

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 1 benefits, 1 costs, 7 mixed.

Property owners face assessments and liens

The district can charge property assessments for services and improvements; the law sets no dollar amount. Assessment financing requires a written petition from owners holding a majority of the affected property's assessed value. Assessments, penalties, interest, collection costs, and reasonable lawyer fees are personal debts and become liens when the board approves assessments. These liens outrank other claims except county, school district, and city property tax liens, and are enforceable like tax liens. Corrections cannot raise a parcel's assessment; added assessments require notice and a hearing.

District cannot charge owners property taxes

The Colmena Ranch district cannot impose a property tax based on property value. This ban does not prevent separate district assessments or fees. It does not change taxes charged by other local governments.

Property-taking powers depend on enactment vote

The law ties the district's power to take private property to its legislative approval vote. Two-thirds approval in each chamber activates the immediate-effect version, which grants limited eminent domain under Texas Water Code rules. Without that vote, the version effective September 1, 2025, prohibits district use of eminent domain. The supplied information does not identify the vote result, so it does not establish which version governs.

Colmena Ranch gets elected district leadership

The law creates Colmena Ranch Municipal Management District No. 1 in Collin County, with boundaries set by detailed land descriptions. Boundary descriptions include land listed at 131.364 and 1,443.802 acres. Five elected directors serve staggered four-year terms; initial positions 1–3 end June 1, 2027, and positions 4–5 end June 1, 2029. Directors can receive up to $150 per meeting and $7,200 yearly each, plus necessary and reasonable work expenses. The law specifies immediate effect with two-thirds approval in each legislative chamber; otherwise, its effective date is September 1, 2025.

County services stay; district can add policing

Collin County cannot reduce the services it provided in the district area when the law took effect. District services must add to county services, not replace them. The district can contract with qualified providers, including the county or a city with land in the district, for policing. These contracts can include a fee, but the law sets no fee amount or service level.

Owners can seek district changes or closure

The district can add or remove land through Texas Water Code procedures. It can split by board action or a petition from owners holding a majority of assessed value, but only without outstanding bond debt. New districts keep the district's powers and duties and must stay within the territory described in the law. Owners representing two-thirds of assessed value or surface area can require dissolution; roads, public areas, and assessment-exempt land are excluded from the area count. The board can also vote to dissolve, but bond debt must be repaid or legally set aside, contractual payments completed, and public works transferred under contract.

District borrowing requires emergency service contracts

The district can borrow and issue debt, repaid with assessments, impact fees, revenue, contract payments, grants, or other district money. Revenue-backed bonds need no election; contract-payment bonds must meet the referenced Texas Water Code requirements. Before issuing debt, the district needs a contract for adequate added police, fire, and emergency services, approved by county commissioners. District voters must also approve that contract when the contract requires their approval. A special assessment-bond process requires a pre-issuance agreement for a city or retail utility provider to receive or operate the improvement.

District can build roads and amenities

The district can fund, build, and run water, sewer, drainage, roads, walkways, lighting, recreation, and related improvements. It can build, lease, and operate parking lots and garages, including through private operators; no parking prices are set. It can hire government or private groups and create nonprofits to carry out authorized work. The district appoints nonprofit directors, who do not have to live in the district. It can also spend district money on charity or nonprofit dues when their work supports district purposes.

District can fund local business support

The district can offer loans, grants, staff, and services to promote economic development and business activity. These programs can use public money, but the law sets no funding amounts, grant sizes, or loan terms. District land is also eligible for tax-increment or tax-abatement reinvestment zones. The law does not create a zone or award a tax break by itself.

Sponsors & Cosponsors

Sponsors

  • Angela Paxton

    Republican • Senate

  • Keresa Richardson

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 228 • No: 53

House vote • 5/30/2025

Record vote

Yes: 82 • No: 53

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: 131 • No: 0

House vote • Unknown

Committee vote: Intergovernmental Affairs

Yes: 9 • No: 0 • Other: 1

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • 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

    6/2/2025House

  4. Signed in the Senate

    6/1/2025Senate

  5. Signed in the House

    6/1/2025House

  6. Reported enrolled

    5/31/2025House

  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#4082)

    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 local & uncontested calendar

    5/28/2025Senate

  24. Committee report printed and distributed

    5/23/2025Senate

  25. Recommended for local & uncontested calendar

    5/23/2025Senate

Bill Text

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