TexasSB 304889th Legislature Regular SessionSenateWALLET

Relating to the creation of the Bluebonnet Hills 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: Brian Birdwell (Republican), Angelia Orr

Became Law

BLUEBONNET HILLS MUNICIPAL MANAGEMENT DISTRICT NO. 1MIDLOTHIAN, CITY OFSpecial Districts & Authorities--Miscellaneous

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 3 benefits, 0 costs, 6 mixed.

District cannot take property by force

Beginning September 1, 2025, the district cannot use eminent domain to take private property. This protects owners from forced property transfers by this district.

District property taxes need voter approval

District property taxes require voter approval; an operations and maintenance tax needs a majority vote and cannot exceed the approved rate. Voter-approved property-tax-backed bonds require an annual repayment tax while any bond debt remains, with no rate or amount limit. Before the first such bonds, each city containing district land within its limits or surrounding jurisdiction must consent. That consent covers the district’s creation and included land. The law also exempts the district from Local Government Code Section 375.243; the supplied text does not explain that rule.

Property assessments require an owner petition

The district can charge property assessments for authorized purposes. Assessment-funded services or improvements first require a written petition requesting that specific service or project. Signers must own more than half the assessable property value, based on the latest certified county appraisal roll. Owners are personally liable for assessments, penalties, interest, collection costs, and reasonable attorney fees. These charges create a property lien behind county, school district, and city property-tax liens, but ahead of other liens.

Owners can petition to dissolve district

The board must dissolve the district after a qualifying written petition, subject to debt and service-transfer safeguards. Signers must represent at least two-thirds of assessable property value or qualifying land area, excluding specified public and exempt land. The board can also dissolve the district by majority vote. Bond debt must first be repaid or legally set aside for repayment, and contractual payment obligations must be fully paid. Another party must contract to take over any district-owned, operated, or maintained public works before dissolution.

District can support local business growth

The district can support local business activity through loans, grants, staff, and services. These programs must further the district’s economic development purposes. District land is also eligible for tax increment or tax abatement reinvestment zones. Eligibility alone does not create a zone or guarantee lower taxes. The law sets no program funding amount or individual eligibility rules.

Added services without replacing city services

The district can fund and run water, sewer, drainage, road, recreation, and other authorized improvements using available money. It can hire public or private partners, including paid law enforcement providers. It can also build or run public parking lots and garages, including through private operators; parking fees are not set. Midlothian cannot cut its existing service level just because the district exists. District services must add to city services, not replace them.

New local district for Bluebonnet Hills

The law creates Bluebonnet Hills Municipal Management District No. 1 in Midlothian, covering 242.375 acres in Ellis County. Five elected directors serve staggered four-year terms. The initial directors’ terms end June 1, 2027, for three positions and June 1, 2029, for two. Directors may receive up to $150 per meeting, capped at $7,200 each year, plus necessary and reasonable work expenses.

District boundary changes have debt safeguards

The district can add or remove land through the listed Water Code procedures, changing which properties fall under district authority. A separate process allows division into new districts only with no outstanding bond debt and no property tax being imposed. New districts must stay within the territory described in the law. Each needs voter approval before imposing a maintenance tax or issuing property-tax-backed bonds.

District borrowing can fund local improvements

The district can borrow and issue bonds or notes for authorized purposes. Repayment can use taxes, assessments, impact fees, revenue, contract payments, grants, or other district money. Bonds backed by non-property-tax revenue or contract payments can be issued without an election. Contract-payment bonds must satisfy Water Code Section 49.108. Before issuing assessment-backed debt for an improvement, a city or retail utility provider must agree to receive, operate, or maintain it.

Sponsors & Cosponsors

Sponsors

  • Brian Birdwell

    Republican • Senate

  • Angelia Orr

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 14 • No: 0

House vote • 5/28/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/14/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/14/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Intergovernmental Affairs

Yes: 9 • No: 0 • Other: 1

Senate vote • Unknown

Committee vote: Local Government

Yes: 5 • 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

    6/1/2025House
  4. Signed in the House

    6/1/2025House
  5. Signed in the Senate

    5/31/2025Senate
  6. Reported enrolled

    5/29/2025Senate
  7. House passage reported

    5/29/2025Senate
  8. Nonrecord vote recorded in Journal

    5/28/2025House
  9. Statement(s) of vote recorded in Journal

    5/28/2025House
  10. Record vote (RV#3832)

    5/28/2025House
  11. Passed

    5/28/2025House
  12. Read 3rd time

    5/28/2025House
  13. Nonrecord vote recorded in Journal

    5/28/2025House
  14. Passed to 3rd reading

    5/28/2025House
  15. Read 2nd time

    5/28/2025House
  16. Placed on Local, Consent, and Res. Calendar

    5/28/2025House
  17. Considered in Local & Consent Calendars

    5/27/2025House
  18. Comm. report sent to Local & Consent Calendar

    5/25/2025House
  19. Committee report distributed

    5/23/2025House
  20. Comte report filed with Committee Coordinator

    5/23/2025House
  21. Reported favorably w/o amendment(s)

    5/21/2025House
  22. Recommended to be sent to Local & Consent

    5/21/2025House
  23. Considered in formal meeting

    5/21/2025House
  24. Referred to Intergovernmental Affairs

    5/16/2025House
  25. Read first time

    5/16/2025House

Bill Text

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