All Roll Calls
Yes: 280 • No: 107
TexasSB 303789th Legislature Regular SessionSenateWALLET
Relating to the creation of La Cima 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: Judith Zaffirini (Democratic), Erin Zwiener
Became Law
LA CIMA MUNICIPAL MANAGEMENT DISTRICT NO. 1SAN MARCOS, CITY OFSpecial Districts & Authorities--Miscellaneous
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 2 benefits, 0 costs, 6 mixed.
Property-taking power depends on legislative votes
The law ties the district's eminent domain power and effective date to its legislative vote totals. A two-thirds vote of all elected members in each house makes the law effective immediately and authorizes limited eminent domain. That authority follows Texas Water Code Section 49.222 and other applicable limits. Without that vote threshold, the law takes effect September 1, 2025, and prohibits eminent domain. The supplied materials do not establish which vote threshold was reached.
District bonds can create lasting taxes
The district can borrow for authorized projects and repay debt with taxes, assessments, fees, revenues, grants, or other district money. Property-tax bonds need voter approval; before the first issue, affected cities must consent to district creation and land inclusion. Once issued, those bonds require annual property taxes with no statutory rate or amount limit while any bonds remain outstanding. Assessment-backed debt for improvements transferred to or maintained by a city or retail utility requires an agreement before issuance. Revenue bonds need no election when backed by non-property-tax revenue, subject to the applicable Water Code requirements.
District property taxes need voter approval
The district must get voter approval before imposing any property tax. An operation and maintenance tax requires approval by a majority of district voters voting in the required election. The board sets that tax rate, but cannot exceed the rate voters approved. The law sets no specific rate or household tax bill.
Property assessments require owner support
The district can charge property assessments for authorized purposes. Funding a service or project requires a written petition from owners holding a majority of the affected property's assessed value. That value comes from the latest certified county tax appraisal roll. Assessments, penalties, interest, collection costs, and reasonable attorney fees are personal debts secured by property liens from the board's resolution date. These liens outrank other liens except county, school district, and city property tax liens, and can be enforced like tax liens.
New elected district for La Cima
The law creates La Cima Municipal Management District No. 1 in San Marcos. Recorded land descriptions in Hays County set its starting boundaries. Five elected directors serve staggered four-year terms and may receive fees and expense payments. Initial terms end June 1, 2027, for positions 1–3 and June 1, 2029, for positions 4–5. The district can also create nonprofit or local government corporations to carry out projects and services.
La Cima gains business development tools
The district can create programs to support business and commercial activity, including public loans, grants, staff, and services. The law sets no funding amount and does not limit recipients to small businesses. All or part of the district is eligible for tax increment reinvestment or tax abatement zones. This eligibility does not itself create a zone or guarantee anyone a tax break.
La Cima gains added local services
The district can build, operate, or fund local improvements using money available for those purposes. It can provide parking lots and garages, including privately operated facilities that remain public-purpose facilities. It can pay qualified providers, including San Marcos, for law enforcement and charge fees for district services. District services must add to city services, not replace them. San Marcos cannot use the district's creation to cut service levels below those provided when the law took effect.
Rules for district splits and closure
The district can add or remove land through Water Code procedures. Its board can split it only with no outstanding bond debt and no district property taxes. Owners holding a majority of district real property's assessed value can petition for a split. New districts inherit its powers, stay within the original creation area, and receive assigned boundaries, initial directors, assets, and liabilities. A written dissolution petition requires closure when owners represent at least two-thirds of assessed value subject to assessment or eligible land area. The land-area test excludes roads, rights-of-way, and assessment-exempt areas; the board can also choose dissolution by majority vote. Closure requires bond debt to be repaid or legally provided for, contract payments settled, and another responsible party contracted for remaining public works.
Sponsors & Cosponsors
Sponsors
Judith Zaffirini
Democratic • Senate
Erin Zwiener
House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 5/16/2025
Record vote
Yes: 70 • No: 47
House vote • 5/15/2025
Record vote
Yes: 87 • No: 48
Senate vote • 5/12/2025
Record vote
Yes: 27 • No: 3
Senate vote • 5/12/2025
Record vote
Yes: 27 • No: 3
Senate vote • 5/12/2025
Record vote
Yes: 27 • No: 3
Senate vote • 5/12/2025
Record vote
Yes: 27 • No: 3
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: 2
Actions Timeline
See remarks for effective date
5/29/2025HouseFiled without the Governor's signature
5/29/2025HouseSent to the Governor
5/20/2025HouseSigned in the House
5/20/2025HouseSigned in the Senate
5/20/2025SenateReported enrolled
5/19/2025SenateHouse passage reported
5/19/2025SenateStatement(s) of vote recorded in Journal
5/16/2025HouseRecord vote (RV#2915)
5/16/2025HousePassed
5/16/2025HouseRead 3rd time
5/16/2025HouseCommittee report sent to Calendars
5/15/2025HouseStatement(s) of vote recorded in Journal
5/15/2025HouseRecord vote (RV#2749)
5/15/2025HousePassed to 3rd reading
5/15/2025HouseRead 2nd time
5/15/2025HouseLaid out in lieu of companion (HB 5673)
5/15/2025HouseCommittee report distributed
5/15/2025HouseComte report filed with Committee Coordinator
5/15/2025HouseReported favorably w/o amendment(s)
5/14/2025HouseConsidered in formal meeting
5/14/2025HouseReferred to Intergovernmental Affairs
5/14/2025HouseRead first time
5/14/2025HouseReceived from the Senate
5/12/2025HouseReported engrossed
5/12/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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