Texas House Bill HB5658

Texas 2025 - 89th Regular

• Filed: 3/28/25
• Out of House Committee: 4/29/25
• Voted on by House: 5/7/25
• Out of Senate Committee: 5/23/25
• Voted on by Senate: 5/28/25
• Governor Action: 6/20/25

Caption

Relating to the creation of the Craver Ranch Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments and fees; granting a limited power of eminent domain.

Impact

The bill's passage signifies a shift in local governance, as it enables the Craver Ranch Municipal Management District to supplement city services through enhanced funding mechanisms. With the ability to issue bonds without requiring a local tax helps retain economic flexibility and aids in addressing specific local needs. These provisions may also affect other local governance models by establishing a precedent for similar districts to enhance economic capabilities and infrastructure initiatives. However, the limitation of eminent domain raises important discussions surrounding property rights and local expectations.

Summary

House Bill 5658 focuses on the establishment of the Craver Ranch Municipal Management District No. 1 in Denton County, Texas. This special district is tasked with enhancing local economic development by allowing for the issuance of bonds, the imposition of assessments and fees, and granting a limited power of eminent domain. The district aims to promote vital public benefits, including housing, commerce, transportation, tourism, and recreational facilities. Empowering local governance in this manner is seen as crucial for supporting both community welfare and economic vitality in the region.

Sentiment

The discussions surrounding HB 5658 exhibit a generally supportive sentiment among stakeholders who see the potential benefits of fostering economic opportunities through a dedicated management district. Supporters emphasize the necessity of such legislation to tackle community challenges directly while enhancing local infrastructure. Conversely, opponents may express concern over the implications of eminent domain powers and the adequacy of checks and balances in ensuring that such measures truly serve the community's interests rather than broader commercial gains.

Contention

Notable contentions included the extent of the district's powers, particularly regarding the use of eminent domain, which opponents worry could infringe on property rights without sufficient local oversight. The methodology for assessing property to fund district initiatives also brought forth debate, as stakeholders question the fairness of imposing fees on property owners within the district. These points of contention illustrate the broader friction between promoting economic development and protecting individual property rights, a recurring theme in discussions on local governance.

Texas Constitutional Statutes Affected

Water Code

• Chapter 49. Provisions Applicable To All Districts
  • Section: 222
  • Section: New Section
  • Section: 222

• Chapter 54. Municipal Utility Districts
  • Section: New Section

Local Government Code

• Chapter 375. Municipal Management Districts In General
  • Section: 161
  • Section: New Section
  • Section: 161
  • Section: New Section

• Chapter 380. Miscellaneous Provisions Relating To Municipal Planning And Development
  • Section: New Section

Tax Code

• Chapter 311. Tax Increment Financing Act
  • Section: New Section

• Chapter 312. Property Redevelopment And Tax Abatement Act
  • Section: New Section

Government Code

• Chapter 1509. Obligations For Other Municipal Purposes
  • Section: New Section