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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
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.

Government Affairs & Regulatory Compliance Analysis

HB5682: Government Affairs Overview

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.

Rep. Keresa Richardson·House Bill·Regular Session

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

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

Business Impact

Who HB5682 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Agriculture

Affected business types:

  • Farmers
  • Ranchers
  • Agricultural processors
  • Farm equipment dealers
View all agriculture legislation

Key Operational Considerations

  • 1Loan Agreements: Review covenants regarding permitted liens. District assessments hold priority over mortgages; lenders may require new reserve accounts or intercreditor agreements.
  • 2Sales & 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.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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HB5682
Relating to the creation of the Colmena Ranch Municipal Management District No. 1; granting a limited power of eminent domain; providing authority to ...
Low Urgency
Heavily Contested
House Vote83 - 48
YEA
NAY
63% in favor131 voting
Senate Vote27 - 4
YEA
87% in favor31 voting
52
Total Opposition Votes
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
Collin County Commissioners CourtColmena Ranch Municipal Manageme...TCEQ
Primary Author: Rep. Keresa Richardson
89th Texas Legislature
jdkey.com
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.

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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.

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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
Effective
Sep 1, 2025
TopicsColmena Ranch Municipal Management District No. 1Collin CountySpecial Districts & AuthoritiesSpecial Districts & Authorities--miscellaneous
03

House Authors

Rep. Keresa RichardsonRepublican · Primary Author

Senate Sponsor

Sen. Angela PaxtonRepublican · Primary Sponsor

Bill Text(with markup)

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View bill text in multiple formats on Texas Legislature website

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Related by Topic

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

Q

How significant are the changes in HB5682?

The regulatory priority for HB5682 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

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.

Q

What are the key dates for HB5682?

Key dates for HB5682: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB5682?

HB5682 establishes the following penalties: civil penalty of Variable (Assessment amount + interest + collection expenses + attorney's fees) for Non-payment of District assessments results in a first and prior lien against the property, superior to all other liens except ad valorem taxes.. Consult with legal counsel for specific applicability to your situation.

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Legislative data provided by LegiScanLast updated: January 11, 2026