HB5682

HB5682 creates Colmena Ranch Municipal Management District No. 1 in Collin County. Its five described tracts total 2,450.793 acres around FM 543, the Collin County Outer Loop and Honey Creek. The statutory descriptions determine which properties are included; this is not an independent survey or ownership determination.

The district can finance and provide public improvements and services such as water, wastewater, drainage, roads, recreation and parking. It can contract for law enforcement, establish a nonprofit corporation to assist with projects, and support economic development through loans, grants, personnel and services. District services must supplement—not replace—the county’s existing services. Eligibility for tax-increment or tax-abatement zones does not itself establish those zones.

The district cannot impose property taxes, but that does not make its services free. It may impose assessments and fees and issue obligations backed by assessments, impact fees, revenue, contract payments, grants or other district money. An assessment-financed service or improvement requires a petition from owners representing a majority of assessed property value subject to assessment. Assessments can become personal liabilities and property liens. The usual Chapter 375 exemption for certain residential property does not apply, so homeowners cannot assume that exemption protects them from assessments or impact fees.

Before issuing bonds, notes or other obligations under its financing subchapter, the district must have a contract providing adequate supplemental police, fire and emergency services. Collin County’s commissioners court must review and approve the adequacy of those services. The contract may also condition effectiveness on district-voter approval; the act does not mandate that extra election for every such contract. Specified revenue- or contract-payment-backed bonds may be issued without an election. A separate assessment-backed financing route is available for improvements to be conveyed to or operated and maintained by a municipality or retail utility provider under a prior agreement.

Initial directors Eric Burton, Mike Alley and Jacob Thompson have terms ending June 1, 2027; Rodney Price and David Medis have terms ending June 1, 2029. The five elected directors serve staggered four-year terms. Compensation is capped at $150 per board meeting and $7,200 per director per year, plus necessary and reasonable expense reimbursement. The district can add or exclude land under the cited general laws and may divide only without outstanding bonded debt. New districts cannot initially extend outside the act’s territory. Dissolution can follow a board vote or a qualifying two-thirds property-owner petition, but debts, contractual payments and responsibility for public facilities must be addressed first.

The act became law without the governor’s signature June 20, 2025, effective September 1, 2025. The district cannot use eminent domain: the House’s 82–53 concurrence vote was below the two-thirds threshold, activating the prohibition rather than the conditional grant. Initial House passage was 83–48 and Senate passage was 27–4. Sources: enrolled act and certified votes and official history and effective-date remarks.