Texas 2025 - 89th Regular

Texas House Bill HB5694

Filed
4/29/25  
Out of House Committee
5/12/25  
Voted on by House
5/16/25  
Governor Action
 
Bill Becomes Law
 

Caption

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.

Impact

This legislation allows the Fannin County Improvement District to operate autonomously while still contributing to the broader needs of the county. The district may not diminish the county's existing services but is designed to supplement those services, thus ensuring that local governance can effectively address growth and development. Key provisions also mandate a voter approval process for imposing new taxes, ensuring that the district's residents have a say in financing the improvements affecting their lives.

Summary

House Bill 5694 proposes the establishment of the Fannin County Improvement District No. 1 in Texas. The bill provides the district with various powers, which include the authority to issue bonds and impose assessments, fees, and taxes to fund improvements and services within its jurisdiction. The district aims to enhance employment, commerce, transportation, housing, tourism, and overall public welfare within its defined area. By creating a special district, the bill seeks to stimulate local economic development and provides a framework for infrastructure improvement that supports the needs of the community.

Sentiment

Generally, the sentiment around HB 5694 appears to be favorable, particularly among stakeholders invested in local economic growth and infrastructure improvements. Proponents argue that such districts can catalyze much-needed infrastructure projects that would not be possible without dedicated funding and management. However, some concerns exist regarding the potential burdens of increased local taxes and fiscal accountability of the district's board.

Contention

Notable points of contention include the district's power to impose assessments and taxes without widespread opposition. While the bill is supported as a vehicle for economic progress, there are worries that increased local taxation could disproportionately affect residents. Additionally, transparency and oversight mechanisms may need to be established to ensure the district functions in the public interest and does not become an avenue for mismanagement of funds.

Texas Constitutional Statutes Affected

Water Code

  • Chapter 49. Provisions Applicable To All Districts
    • Section: New Section
    • Section: 004
    • Section: New Section
    • Section: 107
    • Section: 108
    • Section: New Section
    • Section: New Section
    • Section: New Section
  • Chapter 54. Municipal Utility Districts
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: 601
    • Section: 602
    • Section: New Section
    • Section: New Section
  • Chapter 60. Navigation Districts--general Provisions
    • Section: New Section
  • Chapter 62. Article Xvi, Section 59, Navigation Districts
    • Section: New Section

Local Government Code

  • Chapter 375. Municipal Management Districts In General
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: 243
    • Section: New Section
    • Section: New Section
  • Chapter 1. General Provisions
    • Section: New Section
  • Chapter 380. Miscellaneous Provisions Relating To Municipal Planning And Development
    • Section: New Section

Government Code

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

Tax Code

  • Chapter 311. Tax Increment Financing Act
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
  • Chapter 312. Property Redevelopment And Tax Abatement Act
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

TX SB3050

Identical 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.

Similar Bills

TX SB3050

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.

TX SB660

Relating to the creation of the Caldwell County Municipal Utility District No. 1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.

TX HB4725

Relating to the creation of the Caldwell County Municipal Utility District No. 1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.

TX SB624

Relating to the creation of the Montgomery County Municipal Utility District No. 137; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.