TexasHB 569689th Legislature Regular SessionHouseWALLET

Relating to the creation of The Reserve Municipal Management District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Sponsored By: Brian Birdwell (Republican), David Cook

Became Law

THE RESERVE MUNICIPAL MANAGEMENT DISTRICTMANSFIELD, CITY OFSpecial Districts & Authorities--Miscellaneous

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 0 costs, 6 mixed.

Approved Bonds Require Uncapped Property Taxes

Beginning September 1, 2025, the district can issue property-tax-backed bonds after voter approval. Its first such bond issue also requires consent from every city whose boundaries or outside-city jurisdiction includes district land. Each city must consent by ordinance or resolution to the district’s creation and inclusion of land. Once these bonds are issued, the board must impose an annual property tax with no rate or amount limit. That tax continues every year while any part of the bonds remains unpaid.

Owner Petitions Gate New Property Assessments

The district can charge assessments on property in all or part of its area. To fund a service or improvement, it first needs a written petition from owners holding a majority of assessed value. That majority covers property subject to assessment and uses the latest certified county appraisal roll. Assessments, penalties, interest, collection costs, and reasonable attorney fees become owners’ personal debts and liens against their property. The lien starts with the board’s assessment resolution, ranks behind only county, school, and city property-tax liens, and is enforceable like a property-tax lien.

Voters Control New District Operating Taxes

The district must get voter approval before imposing a property tax. An operating and maintenance tax needs approval from a majority of district voters who vote. It can pay for district operations, improvements, and services. Beginning September 1, 2025, the board sets this tax rate, but cannot exceed the rate voters approved. The law itself sets no tax rate.

District Cannot Take Property By Force

The district cannot use eminent domain to take property. This protects property owners from forced property takings through that power by this district.

Five Directors Govern The Reserve District

Five directors govern the district, with elections and staggered four-year terms. Initial directors are Clay Roby, Jimmy O’Neal, Dan White, Joe Smolinski, and Jason Moore. Initial terms end June 1, 2027, for positions 1–3 and June 1, 2029, for positions 4–5. Directors can receive up to $150 per meeting, capped at $7,200 each year. They can also receive repayment for necessary, reasonable work expenses, with no stated dollar cap.

New Mansfield District Adds Local Services

The law creates The Reserve Municipal Management District in Mansfield, Texas, covering about 173.667 acres. The district can provide projects and services allowed by law. District services must add to, not replace, existing city services. Mansfield cannot use the district’s creation to reduce the city services provided when the law takes effect.

District Can Offer Local Business Help

The district can create programs offering public-money loans, grants, staff, or services to support business and commercial activity. These programs must further the district’s economic-development purposes. District land also qualifies for tax-increment or tax-abatement reinvestment zones. The law does not itself create a zone, award assistance, or set a tax break.

Owners Can Seek District Breakup Or Closure

The district can add or remove land under specified Water Code procedures. It can split by board action or a petition from owners holding a majority of assessed real-property value. A split requires no outstanding bond debt or current property tax; new districts must stay within the law’s original territory. Beginning September 1, 2025, a written owner petition requires closure with two-thirds of assessed value subject to assessment or eligible land area; a board majority can also approve closure. Closure must wait until bond debt is paid or legally settled, contract payments are paid, and another party is contracted to handle any district public works.

District Can Borrow Without Some Elections

Beginning September 1, 2025, the district can borrow and sell bonds, notes, or other debt for authorized purposes. Repayment can use property taxes, assessments, impact fees, revenues, contract payments, grants, or other district money. Bonds backed by revenue other than property taxes can be issued without an election. Contract-payment bonds also need to satisfy Texas Water Code Section 49.108 to avoid an election. The law specifies no borrowing limit or project amount.

District Can Build Roads And Parking

The district can fund, build, run, and maintain authorized projects, including roads, walking paths, lighting, parking lots, and garages. Parking facilities count as public-purpose road improvements even when private companies lease or run them. Waterways and docks inside or outside the district must support inland navigation for district purposes. The board can hire public or private partners and create a nonprofit whose appointed directors need not live locally. It can also spend district money on charity or nonprofit dues when the group’s work supports district purposes.

Sponsors & Cosponsors

Sponsors

  • Brian Birdwell

    Republican • Senate

  • David Cook

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 226 • No: 48

House vote • 5/29/2025

Record vote

Yes: 99 • No: 36

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: 28 • No: 3

Senate vote • 5/26/2025

Record vote

Yes: 28 • No: 3

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: 9 • No: 0 • Other: 1

Actions Timeline

  1. Effective on 9/1/25

    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#4020)

    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. Record vote

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

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

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

    5/23/2025Senate

Bill Text

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