All Roll Calls
Yes: 14 • No: 0
TexasSB 305089th Legislature Regular SessionSenateWALLET
Relating to the creation of the Fannin County Improvement District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.
Sponsored By: Bryan Hughes (Republican), Shelley Luther
Became Law
FANNIN COUNTY IMPROVEMENT DISTRICT NO. 1Special Districts & Authorities--Miscellaneous
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 4 benefits, 2 costs, 3 mixed.
District assessments create property owner debts
The district can charge assessments on some or all district property. Funding a service or improvement requires a written petition from owners holding a majority of the property value being assessed. That value comes from the county’s latest certified appraisal roll. Assessments, penalties, interest, collection costs, and reasonable lawyer fees become owners’ personal debts and liens enforceable like property-tax liens. Only county, school district, and city property-tax liens rank ahead, even when owners are not named in assessment proceedings. The board can correct or delete assessments without added notice or a hearing when a parcel’s charge does not increase.
District borrowing can bring lasting taxes
The district can borrow for authorized projects using taxes, assessments, impact fees, revenue, contract payments, grants, or other district money. Bonds backed only by sources other than property taxes need no election; contract-backed bonds must meet Water Code Section 49.108. Property-tax-backed bonds require voter approval. Before their first issuance, every municipality containing district land within its city limits or extraterritorial jurisdiction must approve district creation and land inclusion. Once tax-backed bonds are issued, the district must levy a yearly property tax while any portion remains outstanding. Unlike the operating tax, this bond tax has no rate or amount limit.
District cannot forcibly take private property
The district cannot use eminent domain to take private property. This protects property owners from forced acquisition by this district. It does not limit any separate eminent domain power held by another government body.
New improvement district for Fannin County
The law creates Fannin County Improvement District No. 1, initially covering 337.65 acres. It adds a local body to support improvements without replacing county services. The county cannot cut services below their level on the act’s effective date. The district can add or remove land through the procedures in the Texas Water Code. Creating the district and setting its boundary do not themselves impose a household charge.
Paid local board leads the district
A five-member voting board leads the district, with staggered four-year terms. The board can appoint nonvoting directors. Owners holding a majority of district property’s assessed value can petition the state environmental agency to appoint temporary directors. Temporary directors serve until permanent directors are elected, or for up to four years. Voting directors receive fees and repayment of actual expenses under state law; the act sets no payment amount.
New support options for district businesses
The district can offer public-money loans, grants, staff, and services to support business activity and economic development. The law sets no funding amounts or individual recipients. All or part of the district can also join tax increment or tax abatement reinvestment zones. Zone creation and any tax breaks require separate steps; this law does not grant them automatically.
District property tax requires voter approval
The district can impose an operation and maintenance property tax only after a majority voting in a district election approves it. The board sets the rate, but cannot exceed the voter-approved limit. The tax can pay for district operations, maintenance, construction, property purchases, and services. The law sets no specific tax rate or household bill.
Owners can seek district shutdown
Owners can require district dissolution through a written petition representing at least two-thirds of property value subject to district taxes or assessments. Values come from the county’s latest certified property-tax rolls. The board can also vote to dissolve by a majority. Dissolution must wait until bonds are paid or legally secured for repayment and contractual payment obligations are fully paid. Another party must agree to take responsibility for district public works before the district closes.
Local projects and services with fees
The district can build, maintain, and fund roads, water systems, wastewater systems, drainage, walkways, and recreation projects. It can own parking lots and garages or lease them to private operators. Navigation projects, including canals and docks, can be inside or outside the district when they serve its navigation purposes. The district can hire public or private partners, including qualified law enforcement providers for a fee. It can charge parking, service, facility-use, and impact fees; the law sets no specific projects or prices.
Sponsors & Cosponsors
Sponsors
Bryan Hughes
Republican • Senate
Shelley Luther
House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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
Effective on 9/1/25
6/20/2025HouseFiled without the Governor's signature
6/20/2025HouseSent to the Governor
6/1/2025HouseSigned in the House
6/1/2025HouseSigned in the Senate
5/31/2025SenateReported enrolled
5/29/2025SenateHouse passage reported
5/29/2025SenateNonrecord vote recorded in Journal
5/28/2025HouseStatement(s) of vote recorded in Journal
5/28/2025HouseRecord vote (RV#3832)
5/28/2025HousePassed
5/28/2025HouseRead 3rd time
5/28/2025HouseNonrecord vote recorded in Journal
5/28/2025HousePassed to 3rd reading
5/28/2025HouseRead 2nd time
5/28/2025HousePlaced on Local, Consent, and Res. Calendar
5/28/2025HouseConsidered in Local & Consent Calendars
5/27/2025HouseComm. report sent to Local & Consent Calendar
5/25/2025HouseCommittee report distributed
5/23/2025HouseComte report filed with Committee Coordinator
5/23/2025HouseReported favorably w/o amendment(s)
5/21/2025HouseRecommended to be sent to Local & Consent
5/21/2025HouseConsidered in formal meeting
5/21/2025HouseReferred to Intergovernmental Affairs
5/16/2025HouseRead first time
5/16/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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