HB5696

HB5696 creates The Reserve Municipal Management District on a described 173.667-acre area by Matlock Road in Mansfield. It authorizes public improvements and services, including water, wastewater, drainage, roads, recreation and parking. Its project powers expressly include canals, waterways, bulkheads and docks inside or outside its boundaries when serving the stated inland-navigation purposes. District services must supplement—not replace—Mansfield’s existing services.

The district can create a supporting nonprofit corporation and economic-development programs, including loans, grants, personnel and services. It cannot exercise eminent domain. Its five elected directors serve staggered four-year terms. Initial directors Clay Roby, Jimmy O’Neal and Dan White have terms ending June 1, 2027; Joe Smolinski and Jason Moore have terms ending June 1, 2029. Director compensation is capped at $150 per board meeting and $7,200 per year, plus necessary and reasonable expense reimbursement.

Property taxes and property-tax-backed bonds require voter approval. Operating taxes cannot exceed the approved rate; taxes for outstanding tax-backed bonds have no rate or amount limit specified in the act. The first property-tax-backed bond issue requires applicable municipal consent to district creation and land inclusion. Specified revenue- or contract-payment-backed bonds may be issued without an election, subject to the cited contract-payment requirements. The district may also use assessments, impact fees, grants and other authorized money to support obligations.

Financing a service or improvement with assessments requires a petition from owners holding a majority of the assessed real-property value subject to assessment. Assessments can create personal liability and enforceable liens on property. The district may add or exclude land under the cited general laws. Division requires no outstanding bonded debt and no property tax being imposed; resulting 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 first be addressed.

The act became law without the governor’s signature June 20, 2025, effective September 1, 2025. Initial House passage was 87–44, with two present but not voting; concurrence in Senate changes was 99–36, with one present but not voting. The Senate vote was 28–3. Sources: enrolled act and certified votes and official history.