All Roll Calls
Yes: 580 • No: 286
TexasSB 304789th Legislature Regular SessionSenateWALLET
Relating to the creation of certain municipal management districts; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.
Sponsored By: Sheryl Cole, Judith Zaffirini (Democratic)
Became Law
PURA VIDA MUNICIPAL MANAGEMENT DISTRICT NO. 1Special Districts & Authorities--MiscellaneousENVIRONMENTAL QUALITY, TEXAS COMMISSION ON
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
22 provisions identified: 3 benefits, 4 costs, 15 mixed.
District borrowing can bring lasting property taxes
The three districts can borrow for authorized work, using taxes, assessments, fees, revenue, grants, or other district money for repayment. Voters must approve property taxes and bonds backed wholly or partly by those taxes. Once those bonds are issued, annual property taxes must continue while any bond debt remains, without a rate or amount cap. Before the first property-tax-backed bond issue, each affected city must consent to the district's creation and included land. The law does not set an individual owner's tax bill.
Pura Vida can tax local purchases
Pura Vida has authority for a 2.0% district sales tax on taxable purchases and a matching use tax. Adopting or changing the tax requires an election. Combined local sales taxes at any district location cannot exceed 2.0%; this is not an extra 2.0% above that cap. The tax starts on the first day of the first calendar quarter after the Comptroller receives the district's tax resolution.
Voters can approve district upkeep taxes
Each district can charge a property tax for operations and upkeep after a majority of voters casting ballots approve it. The money can pay for district purposes, including maintenance, improvements, and services. The board sets the rate, but cannot exceed the rate voters approved. The law does not set a tax rate or household bill.
District land takings face legal limits
The law includes eminent-domain bans for Pura Vida and Rivers Market Place, with September 1, 2025 dates. It also ties which eminent-domain rules apply to whether two-thirds of each legislative chamber supported the act. Wolf Creek cannot take private property through eminent domain without that vote threshold. Where taking authority remains available, it must follow Water Code Section 49.222 and the limits in Section 54.209. Immediate effect requires the two-thirds vote; the law's fallback effective date is September 1, 2025.
Owner approval gates assessments with liens
Assessment-funded projects require a written petition from owners holding more than half the assessed value of property subject to assessment. Value comes from the county's latest certified appraisal roll, not a count of owners. Assessments and added penalties, interest, collection costs, and attorney fees create liens effective when the board adopts its resolution. These liens rank below only county, school, and city property-tax liens; owners remain personally liable even when omitted from the roll. Assessment-backed utility bonds require a prior agreement for a city, county, or retail utility provider to take or operate the improvement.
Property assessments bring debts and safeguards
Districts can charge property assessments for authorized purposes; funding services or improvements requires a written petition from affected property owners. Signers must own more than half the assessed value subject to assessment, based on the latest certified county appraisal roll. Owners personally owe assessments, penalties, interest, collection expenses, and reasonable attorney fees, even when omitted from the assessment roll. Liens start with the board resolution, rank behind only county, school, and city property-tax liens, and are enforced like tax liens. Boards can fix or delete assessment entries without notice or a hearing only when no parcel's assessment increases.
District property taxes require voter approval
District voters must approve property taxes for operations and bonds backed by property taxes. Operating tax rates cannot exceed the rate voters approve. Each affected city must consent before the district's first property-tax bond issue; later issues do not require that consent. Once tax-backed bonds are issued, the district must levy an annual property tax while those bonds remain outstanding.
Wolf Creek owners can seek closure
Wolf Creek's board must dissolve the district after a valid written petition, unless debts or facility duties block closure. Signers must represent at least two-thirds of assessed property value or two-thirds of eligible land area. Eligible area excludes roads, utility rights-of-way, public areas, and property exempt from assessment. The board can also approve closure by majority vote. Bonds must be paid or legally funded for repayment, payment contracts settled, and district facilities transferred through an ownership or operating agreement.
Cities must keep existing district services
Mustang Ridge and Elgin must maintain the services they provided in district areas when the law took effect. Greenville and Hunt County must do the same for Wolf Creek. District services must add to those services, not replace them.
Districts can offer local business support
Districts can create programs supporting local business activity through public-money loans, grants, staff, or services. They can also use economic development powers available to cities. District land is eligible for tax increment reinvestment zones and tax abatement reinvestment zones. The law does not itself create those zones, award tax breaks, or set business-aid funding or recipient rules.
Pura Vida can add sales taxes
Pura Vida can adopt or change a district sales and use tax through an election. Its rate is 2%, reduced as needed so combined local sales and use taxes at any location never exceed 2%. A matching use tax covers taxable items bought, leased, or rented from district retailers for use, storage, or consumption there. The tax starts on the first day of the first calendar quarter after the Comptroller receives the district's tax resolution. The district can also use the alternative sales-tax method allowed by state law.
Elected district boards have pay limits
Each district has five elected directors serving staggered four-year terms. Districts can pay each director up to $150 per board meeting, capped at $7,200 per year. They must also repay necessary and reasonable expenses from board work. Expense repayments are separate from meeting pay.
Districts can provide parking and charge
Districts can build, buy, lease, own, and run off-street parking facilities. Private companies can lease or operate them while the facilities remain public-purpose improvements. Districts can charge for facilities or services, but the law sets no parking price or required project.
District splits require clear debt limits
A district can split only when it has no outstanding bond debt and is not imposing property taxes. The board can start a split itself or after owners representing most assessed real-property value petition for one. The split order must name the new districts, set boundaries, appoint initial directors, and divide assets and debts. New districts keep the chapter's powers but cannot extend beyond the land described in the law. Each must get voter approval before imposing a maintenance tax or issuing bonds backed wholly or partly by property taxes.
Districts can buy extra police services
Districts can pay qualified providers for law enforcement services within their boundaries. Providers can include the city or county, including Mustang Ridge for Pura Vida. The law sets no contract fee or service level and does not directly require a household payment.
Local boards get elections and pay
Each district has five elected directors serving staggered four-year terms under state water-district election rules. Owners holding more than half the district's assessed property value can petition the state environmental commission to appoint five named temporary directors. Initial temporary directors serve until an election or the fourth anniversary of the law's effective date. Successors can be appointed after temporary terms expire if permanent directors have not been elected. Directors can receive up to $150 per meeting and $7,200 yearly, plus necessary and reasonable work expenses.
District boundary changes carry financial safeguards
Districts can add or remove land through the listed state Water Code procedures. Division into new districts is allowed only without outstanding bond debt and while no property tax is imposed. A board can start a division or act on a petition from owners holding a majority of assessed property value. Division orders must assign territory, initial directors, assets, and debts; newly created districts must stay within the law's described area. Each new district needs voter approval before imposing an operating property tax or issuing property-tax-backed bonds.
Owners can seek closure after debts
Owners can require district closure through a written petition meeting either of two ownership thresholds. Signers must own at least two-thirds of assessed value subject to assessment or two-thirds of eligible district land area. The land-area test excludes rights-of-way, roads, parks, public places, easements, and other exempt property. The board can also approve closure by majority vote, but bond debt must first be repaid or legally settled and contract payments completed. A district responsible for public facilities must contract with someone else to take over those duties before closing.
Three new districts guide local development
The law creates Pura Vida in Mustang Ridge, Wolf Creek in Greenville, and Rivers Market Place in Elgin. Their legal boundaries determine which properties fall under district powers, including local improvements and possible charges. Pura Vida starts with 211.348 acres in Travis County; Wolf Creek covers described tracts in Hunt County. Rivers Market Place's land descriptions include 297.870 acres and separate Bastrop County tracts of 45.555 and 14.432 acres. Creating these districts does not itself set a household tax or assessment amount.
District borrowing can create repayment costs
Districts can borrow and issue bonds or notes for authorized purposes, using public or private sales. Repayment can use taxes, assessments, impact fees, revenue, contract payments, grants, or other district money. Bonds backed by revenue other than property taxes can be issued without an election. Contract-payment bonds must follow the requirements of Water Code Section 49.108. Rivers Market Place is exempt from the outstanding-principal limit in Water Code Section 49.4645.
Districts can fund projects and development
Districts can use available money to build, improve, run, or finance authorized local projects and services. They can hire public or private groups and support economic development through loans, grants, and staff. They can also pay dues to charities or nonprofits whose work supports district purposes. District land is eligible for tax-increment or tax-abatement zones, but eligibility alone creates no zone or tax break.
Districts gain tools for local improvements
The law creates Pura Vida, Wolf Creek, and Rivers Market Place municipal management districts for local improvements and services. Rivers Market Place includes separately described Bastrop County tracts of 45.555 acres and 14.432 acres. It can build, buy, operate, maintain, or finance authorized projects using available district money and public or private partners. District boards can also approve nonprofit corporations to carry out authorized projects or services. Those corporations' directors do not have to live in the district.
Sponsors & Cosponsors
Sponsors
Sheryl Cole
House
Judith Zaffirini
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/30/2025
Record vote
Yes: 27 • No: 4
House vote • 5/28/2025
Record vote
Yes: 80 • No: 57
House vote • 5/27/2025
Record vote
Yes: 94 • No: 47
House vote • 5/27/2025
Record vote
Yes: 89 • No: 50
House vote • 5/27/2025
Record vote
Yes: 83 • No: 56
House vote • 5/27/2025
Record vote
Yes: 84 • No: 55
Senate vote • 5/13/2025
Record vote
Yes: 27 • No: 4
Senate vote • 5/13/2025
Record vote
Yes: 27 • No: 4
Senate vote • 5/13/2025
Record vote
Yes: 27 • No: 4
Senate vote • 5/13/2025
Record vote
Yes: 27 • No: 4
House vote • Unknown
Committee vote: Intergovernmental Affairs
Yes: 9 • No: 1 • Other: 1
Senate vote • Unknown
Committee vote: Local Government
Yes: 6 • No: 0 • Other: 1
Actions Timeline
See remarks for effective date
6/20/2025HouseFiled without the Governor's signature
6/20/2025HouseSent to the Governor
6/2/2025HouseSigned in the House
6/2/2025HouseSigned in the Senate
6/1/2025SenateReported enrolled
6/1/2025SenateSenate concurs in House amendment(s)-reported
5/31/2025HouseRecord vote
5/30/2025SenateSenate concurs in House amendment(s)
5/30/2025SenateRead
5/30/2025SenateHouse amendment(s) laid before the Senate
5/30/2025SenateHouse passage as amended reported
5/28/2025SenateRecord vote (RV#3904)
5/28/2025HousePassed as amended
5/28/2025HouseAmended (1-Gerdes)
5/28/2025HouseRead 3rd time
5/28/2025HouseStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3806)
5/27/2025HousePassed to 3rd reading as amended
5/27/2025HouseStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3805)
5/27/2025HouseAmended (3-Harris)
5/27/2025HouseStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3804)
5/27/2025HouseAmended (2-Gerdes)
5/27/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
Related Bills
SB 785, Relating to the regulation of new HUD-code manufactured housing.
SB 650, Relating to requiring the use of electronically readable information to verify a purchaser's age in the retail sale of alcoholic beverages.
SB 646, Relating to repayment of certain mental health professional education loans.
SB 25, Relating to health and nutrition standards to promote healthy living, including requirements for food labeling, primary and secondary education, higher education, and continuing education for certain health care professionals; authorizing a civil penalty.
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.