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HB5682

Regular Session

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

Low
Medium Cost
Effective:2025-09-01
Enforcing Agencies

Colmena Ranch Municipal Management District No. 1 Board of Directors • Collin County Commissioners Court (Oversight of emergency services contracts) • Texas Commission on Environmental Quality (TCEQ)

01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: September 1, 2025 (Sellers must provide Notice to Purchasers immediately upon effectiveness; Assessment liability attaches upon Board resolution).
  • Agency Rulemaking: The District Board of Directors will convene shortly after September 1, 2025, to adopt resolutions defining assessment methodologies and rates. There is no set deadline for these resolutions, creating a "regulatory gray zone" where liability exists but costs are undefined.

Immediate Action Plan

  • 1. Geospatial Audit: Immediately overlay the HB5682 metes and bounds against your land bank to identify affected parcels in Collin County.
  • 2. Update Templates: Insert the "Notice to Purchaser" language into all purchase and sale agreements for affected inventory effective 9/1/2025.
  • 3. Lender Notification: proactively contact lenders holding liens on affected property to discuss the new superior lien status of future assessments.
  • 4. Monitor Board Formation: Assign a representative to attend the first Board of Directors meeting (post-Sept 1) to influence the assessment rate structure.

Operational Changes Required

Contracts

  • Real Estate Sales Contracts: You must amend sales templates to include the statutory Notice to Purchaser (Texas Water Code § 49.452). Failure to provide this notice prior to execution allows the buyer to terminate the contract at closing or sue for damages post-closing.
  • Commercial Leases (NNN): Revise "Operating Expense" definitions in new and renewal leases. Explicitly categorize "District Assessments and Impact Fees" as recoverable CAM or tax expenses to ensure these costs can be passed through to tenants.
  • Loan Agreements: Review covenants regarding permitted liens. District assessments hold priority over mortgages; lenders may require new reserve accounts or intercreditor agreements.

Hiring/Training

  • Sales & Closing Teams: Train staff to verify if a property falls within the District's metes and bounds (approx. 2,400 acres in Collin County) to ensure the correct statutory notices are issued.
  • Accounts Payable: Establish workflows to identify and pay District Assessment invoices, which may be billed separately from standard Collin County ad valorem tax bills.

Reporting & Record-Keeping

  • Lien Releases: Implement a tracking system to secure and record lien releases immediately upon full payment of any District assessment to ensure clear title for future transactions.
  • Petition Tracking: If requesting improvements (roads/utilities), retain certified copies of the owner petitions (requires majority of assessed value) and resulting Board orders.

Fees & Costs

  • District Assessments: Prepare for new annual assessments. The amount is currently undefined but will be set by the Board to cover infrastructure and service costs.
  • Impact Fees: Anticipate one-time impact fees for new developments connecting to District infrastructure.
  • Legal Costs: Budget for outside counsel to review the District's initial "Service Plan" and assessment methodology once published.

Strategic Ambiguities & Considerations

  • Assessment Methodology: The statute authorizes assessments for "any purpose" but does not dictate the formula (e.g., per acre vs. per square foot vs. property value). The Board has broad discretion here. Businesses must monitor the initial Board meetings to advocate for a favorable methodology.
  • "Adequate" Emergency Services: The District cannot issue bonds until Collin County approves its contract for police/fire services. The definition of "adequate" services is subjective; disputes between the District and the County could delay infrastructure reimbursement indefinitely.
  • District Division: The Board can split the District into multiple new districts without further legislative oversight. This creates uncertainty regarding future assessment rates, as one sub-district could carry a significantly higher debt load than another.

Need Help Understanding Implementation?

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Apr 17, 2025
Passed House
May 16, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
TopicsColmena Ranch Municipal Management District No. 1Collin CountySpecial Districts & AuthoritiesSpecial Districts & Authorities--miscellaneous
03

Official Analysis

View HRO AnalysisView All Bill Documents

BILL ANALYSIS

H.B. 5682

By: Richardson

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that an area located within Collin County would benefit from the creation of a management district. H.B. 5682 seeks to provide for the creation of such a district.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 5682 amends the Special District Local Laws Code to create the Colmena Ranch Municipal Management District No. 1 to provide certain improvements, projects, and services for public use and benefit. The bill provides for, among other provisions, law enforcement services, disbursements and transfers of money, adding or excluding land, the division of the district, the non-exemption of certain residential property, and the dissolution of the district. The district's powers and duties include, subject to certain requirements, including a requirement for a petition for financing services and improvements with assessments, and to a condition precedent to issuing obligations, the authority to impose assessments and liens for assessments and to borrow money and to issue bonds and other obligations, including bonds secured by revenue or contract payments. The bill prohibits the district from imposing property taxes. The bill does the following:

·if the bill receives a two-thirds vote of all the members elected to each house, authorizes the district to exercise the power of eminent domain in the manner provided under statutory provisions applicable to water districts generally; and

·expressly prohibits the district from exercising that power if the bill does not receive the necessary vote.

H.B. 5682 establishes that all applicable requirements relating to the following have been fulfilled and accomplished with respect to the bill:

·the legal notice of intention to introduce;

·governor action;

·Texas Commission on Environmental Quality recommendations; and

·the state constitution and laws and legislative rules and procedures.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

House Authors

Rep. Keresa RichardsonRepublican · Primary Author

Senate Sponsor

Sen. Angela PaxtonRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 5682
relating to the creation of the Colmena Ranch Municipal Management
District No. 1; granting a limited power of eminent domain;
providing authority to issue bonds; providing authority to impose
assessments and fees.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 4019 to read as follows:
CHAPTER 4019. COLMENA RANCH MUNICIPAL MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 4019.0101.  DEFINITIONS.  In this chapter:
(1)  "Board" means the district's board of directors.
(2)  "County" means Collin County.
(3)  "Director" means a board member.
(4)  "District" means the Colmena Ranch Municipal
Management District No. 1.
Sec. 4019.0102.  NATURE OF DISTRICT. The Colmena Ranch
Municipal Management District No. 1 is a special district created
under Section 59, Article XVI, Texas Constitution.
Sec. 4019.0103.  PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter.
(b)  By creating the district and in authorizing political
subdivisions to contract with the district, the legislature has
established a program to accomplish the public purposes set out in
Section 52-a, Article III, Texas Constitution.
(c)  The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(d)  This chapter and the creation of the district may not be
interpreted to relieve the county from providing the level of
services provided as of the effective date of the Act enacting this
chapter to the area in the district. The district is created to
supplement and not to supplant county services provided in the
district.
Sec. 4019.0104.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) All land and other property included in the district will
benefit from the improvements and services to be provided by the
district under powers conferred by Sections 52 and 52-a, Article
III, and Section 59, Article XVI, Texas Constitution, and other
powers granted under this chapter.
(b)  The district is created to serve a public use and
benefit.
(c)  The creation of the district is in the public interest
and is essential to further the public purposes of:
(1)  developing and diversifying the economy of the
state;
(2)  eliminating unemployment and underemployment; and
(3)  developing or expanding transportation and
commerce.
(d)  The district will:
(1)  promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2)  provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center;
(3)  promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty;
and
(4)  provide for water, wastewater, drainage, road, and
recreational facilities for the district.
(e)  Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(f)  The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 4019.0105.  INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b)  The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1)  organization, existence, or validity;
(2)  right to issue any type of bonds for the purposes
for which the district is created or to pay the principal of and
interest on the bonds;
(3)  right to impose or collect an assessment; or
(4)  legality or operation.
Sec. 4019.0106.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1)  a tax increment reinvestment zone created under
Chapter 311, Tax Code; or
(2)  a tax abatement reinvestment zone created under
Chapter 312, Tax Code.
Sec. 4019.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 4019.0108.  CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 4019.0201.  GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors who serve staggered
terms of four years.
(b)  Directors are elected in the manner provided by
Subchapter D, Chapter 49, Water Code.
Sec. 4019.0202.  COMPENSATION; EXPENSES. (a) The district
may compensate each director in an amount not to exceed $150 for
each board meeting. The total amount of compensation for each
director in one year may not exceed $7,200.
(b)  A director is entitled to reimbursement for necessary
and reasonable expenses incurred in carrying out the duties and
responsibilities of the board.
(c)  Sections 375.069 and 375.070, Local Government Code, do
not apply to the board.
Sec. 4019.0203.  INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No. Name of Director
1 Eric Burton
2 Mike Alley
3 Jacob Thompson
4 Rodney Price
5 David Medis
(b)  Of the initial directors, the terms of directors
appointed for positions one through three expire June 1, 2027, and
the terms of directors appointed for positions four and five expire
June 1, 2029.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 4019.0301.  GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 4019.0302.  IMPROVEMENT PROJECTS AND SERVICES. (a) The
district, using any money available to the district for the
purpose, may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service authorized under this chapter or Chapter 375, Local
Government Code.
(b)  The district may contract with a governmental or private
entity to carry out an action under Subsection (a). 
(c)  The implementation of a district project or service is a
governmental function or service for the purposes of Chapter 791,
Government Code.
Sec. 4019.0303.  NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b)  The nonprofit corporation:
(1)  has each power of and is considered to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2)  may implement any project and provide any service
authorized by this chapter.
(c)  The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 4019.0304.  LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or a municipality with territory in the
district, to provide law enforcement services in the district for a
fee.
Sec. 4019.0305.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
The district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 4019.0306.  ECONOMIC DEVELOPMENT PROGRAMS. (a) The
district may engage in activities that accomplish the economic
development purposes of the district.
(b)  The district may establish and provide for the
administration of one or more programs to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1)  make loans and grants of public money; and
(2)  provide district personnel and services.
(c)  The district may create economic development programs
and exercise the economic development powers provided to
municipalities by:
(1)  Chapter 380, Local Government Code; and
(2)  Subchapter A, Chapter 1509, Government Code.
Sec. 4019.0307.  PARKING FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain parking facilities or a system of parking
facilities, including lots, garages, parking terminals, or other
structures or accommodations for parking motor vehicles off the
streets and related appurtenances.
(b)  The district's parking facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c)  The district's parking facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(d)  The development and operation of the district's parking
facilities may be considered an economic development program.
Sec. 4019.0308.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 4019.0309.  ADDING OR EXCLUDING LAND. Except as
provided by Section 4019.0310, the district may add or exclude land
in the manner provided by Subchapter J, Chapter 49, Water Code, or
by Subchapter H, Chapter 54, Water Code.
Sec. 4019.0310.   DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if the district has
no outstanding bonded debt.
(b)  This chapter applies to any new district created by the
division of the district, and a new district has all the powers and
duties of the district.
(c)  Any new district created by the division of the district
may not, at the time the new district is created, contain any land
outside the area described by Section 2 of the Act enacting this
chapter.
(d)  The board, on its own motion or on receipt of a petition
signed by the owner or owners of a majority of the assessed value of
the real property in the district, may adopt an order dividing the
district.
(e)  An order dividing the district must:
(1)  name each new district;
(2)  include the metes and bounds description of the
territory of each new district;
(3)  appoint initial directors for each new district;
and
(4)  provide for the division of assets and liabilities
between or among the new districts.
(f)  On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the Texas Commission on Environmental Quality and record the
order in the real property records of each county in which the
district is located.
Sec. 4019.0311.  CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.  
Section 375.161, Local Government Code, does not apply to the
district.
Sec. 4019.0312.  NO AD VALOREM TAX.  The district may not
impose an ad valorem tax.
Sec. 4019.0313.  EMINENT DOMAIN. Subject to the limitations
provided by Section 54.209, Water Code, the district may exercise
the power of eminent domain in the manner provided by Section
49.222, Water Code.
SUBCHAPTER D. ASSESSMENTS
Sec. 4019.0401.  PETITION REQUIRED FOR FINANCING SERVICES
AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b)  A petition filed under Subsection (a) must be signed by
the owners of a majority of the assessed value of real property in
the district subject to assessment according to the most recent
certified tax appraisal roll for the county.
Sec. 4019.0402.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b)  An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1)  are a first and prior lien against the property
assessed;
(2)  are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3)  are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c)  The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that a
taxing unit, as that term is defined by Section 1.04, Tax Code, may
enforce an ad valorem tax lien against real property.
(d)  The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
SUBCHAPTER E. BONDS
Sec. 4019.0501.  AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
terms determined by the board.
(b)  The district may issue, by public or private sale,
bonds, notes, or other obligations payable wholly or partly from
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
(c)  The district may issue, by public or private sale,
bonds, notes, or other obligations payable wholly or partly from
assessments in the manner provided by Subchapter A, Chapter 372,
Local Government Code, if the improvement financed by the
obligation issued under this section will be conveyed to or
operated and maintained by a municipality or other retail utility
provider pursuant to an agreement with the district entered into
before the issuance of the obligation.
Sec. 4019.0502.  BONDS SECURED BY REVENUE OR CONTRACT
PAYMENTS. The district may issue, without an election, bonds
secured by:
(1)  revenue, including contract revenues; or
(2)  contract payments, provided that the requirements
of Section 49.108, Water Code, have been met.
Sec. 4019.0503.  CONDITION PRECEDENT TO ISSUING

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View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 25, 2025

TO:
Honorable Cecil Bell, Chair, House Committee on Intergovernmental Affairs
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5682 by Richardson (Relating to the creation of the Colmena Ranch Municipal Management District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments and fees.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

The fiscal implications of the bill to the district cannot be determined due to the circumstances relating to the district's exercise of eminent domain power, issuance of bonds, or imposition of assessments, fees, and taxes being unknown. No fiscal implication to other units of local government is anticipated.


Source Agencies:
LBB Staff:
JMc, SZ, BC, CWi

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Quick Reference

Frequently Asked Questions

Common questions about HB5682

Q

What does Texas HB5682 do?

HB5682 establishes the Colmena Ranch Municipal Management District No. 1 in Collin County, granting it authority to levy assessments and impact fees that function as superior liens on real property, effective September 1, 2025. While the District lacks eminent domain and ad valorem taxing authority due to insufficient legislative votes, developers and landowners within the District must immediately account for new assessment costs in pro formas and integrate statutory notices into sales contracts to prevent transaction failures.

Q

Who authored HB5682?

HB5682 was authored by Texas Representative Keresa Richardson during the Regular Session.

Q

When was HB5682 signed into law?

HB5682 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB5682?

HB5682 is enforced by Colmena Ranch Municipal Management District No. 1 Board of Directors, Collin County Commissioners Court (Oversight of emergency services contracts) and Texas Commission on Environmental Quality (TCEQ).

Q

How urgent is compliance with HB5682?

The compliance urgency for HB5682 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB5682?

The cost impact of HB5682 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does HB5682 address?

HB5682 addresses topics including colmena ranch municipal management district no. 1, collin county, special districts & authorities and special districts & authorities--miscellaneous.

Legislative data provided by LegiScanLast updated: November 25, 2025

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