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SB3047

Regular Session

Relating to the creation of certain municipal management districts; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.

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

Texas Commission on Environmental Quality (TCEQ) • Board of Directors: Pura Vida Municipal Management District No. 1 • Board of Directors: Wolf Creek Municipal Management District No. 1 • Board of Directors: Rivers Market Place Municipal Management District • Texas Comptroller of Public Accounts (regarding Sales Tax for Pura Vida MMD)

01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025 (Standard effective date; immediate if 2/3 legislative vote was achieved).
  • Compliance Deadline: Q4 2025. Majority landowners must petition the TCEQ for temporary director appointments immediately upon the effective date to ensure board control.
  • Agency Rulemaking: The TCEQ does not need to write new rules, but the District Boards will begin passing orders and calling elections in Q1 2026. Monitor District Board agendas for tax rate adoption and bond elections.

Immediate Action Plan

  • 1. Geospatial Audit: Immediately overlay the metes and bounds of Pura Vida (Travis), Wolf Creek (Hunt), and Rivers Market Place (Bastrop) against your real estate portfolio.
  • 2. Control the Board: If you are the majority landowner, draft and submit the petition to TCEQ to appoint your preferred Temporary Directors on September 1, 2025.
  • 3. Update Disclosures: Revise standard real estate sales contracts for any assets within these zones to include the statutory MMD notice.
  • 4. Lender Notification: Notify lenders of the new district status to determine if they will require additional escrow reserves for district assessments.

Operational Changes Required

Contracts

  • Real Estate Purchase & Sale Agreements (PSAs): You must update seller disclosures immediately. Failure to disclose that a property is located within a Municipal Management District (MMD) with assessment authority allows buyers to terminate contracts and sue for damages.
  • Commercial Leases (NNN): Review "Operating Expense" definitions. Landlords must ensure language permits the pass-through of "special district assessments" and "district ad valorem taxes." If your lease is silent or refers only to "municipal taxes," you may be unable to recover these specific district costs from tenants.

Hiring/Training

  • Accounts Payable: Train staff to segregate District Assessments from standard county property taxes. These assessments are often not escrowed by lenders. Failure to pay results in a foreclosure-eligible lien.
  • Point of Sale (Pura Vida Only): Retailers in the Pura Vida MMD must prepare POS systems to accommodate a new district sales tax layer, effective on the first day of the first calendar quarter after the Comptroller receives notice of voter approval.

Reporting & Record-Keeping

  • Lien Monitoring: Title companies and in-house counsel must track the "Assessment Roll" created by the District Board. The Board may correct this roll without a hearing; you must monitor it proactively to ensure your property value and classification are accurate.
  • Petitions: Retain certified copies of any petitions submitted to TCEQ regarding board appointments or service requests.

Fees & Costs

  • Ad Valorem Tax: The Board is authorized to set a tax rate (unlimited cap) subject to voter approval.
  • Infrastructure Assessments: The Board may impose assessments for improvements. These are mandatory personal liabilities of the owner.
  • Sales Tax (Pura Vida Only): Up to 2% (capped by the combined local rate maximum).

Strategic Ambiguities & Considerations

  • Eminent Domain "Poison Pill": The district’s power to condemn land is conditional. If the final legislative vote count was less than two-thirds in either chamber, the eminent domain provision is void. Legal counsel must verify the Senate and House Journals before conceding condemnation authority.
  • The "Majority Rules" Assessment: The statute allows the Board to levy assessments if petitioned by owners of a majority of the assessed value. If you are a minority landowner (by value), the majority owner can effectively force an uncapped financial assessment onto your property without your consent.
  • Sales Tax Compression (Pura Vida): The district sales tax is limited by the statutory 2% local cap. If the overlapping City or County increases their sales tax, the District’s ability to levy tax is compressed. This creates revenue volatility and potential budget shortfalls the District may attempt to cover via higher property taxes.

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02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Passed Senate
May 13, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
TopicsPura Vida Municipal Management District No. 1Special Districts & AuthoritiesSpecial Districts & Authorities--miscellaneousEnvironmental Quality, Texas Commission On
03

Official Analysis

View HRO AnalysisView All Bill Documents

BILL ANALYSIS

Senate Research Center

S.B. 3047

89R12621 JXC-F

By: Zaffirini

Local Government

5/2/2025

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The establishment of the Pura Vida Municipal Management District (MMD) No. 1 is necessary to facilitate further development of the City of Mustang Ridge in Travis County, as there is no existing special district serving the property.

S.B. 3047 would create the Pura Vida MMD No. 1 within the City of Mustang Ridge, subject to voter approval. This district would enable financing for essential utility, roadway improvements, and public services necessary for housing development in the Austin area. The legislation would grant the district powers to levy taxes, impose assessments, and issue bonds for improvements, with financial actions contingent on landowner or voter approval. What's more, the district would have limited eminent domain powers and the ability to contract with local taxing authorities.

S.B. 3047 would help address the area's infrastructure needs, supporting the development of housing while ensuring local consent and accountability in the financing process. The bill follows the standard municipal management district template.

As proposed, S.B. 3047 amends current law relating to the creation of the Pura Vida Municipal Management District No. 1, provides authority to issue bonds, provides authority to impose assessments, fees, and taxes, and grants a limited power of eminent domain.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle C, Title 4, Special District Local Laws Code, by adding Chapter 4013, as follows:

CHAPTER 4013. PURA VIDA MUNICIPAL MANAGEMENT DISTRICT NO. 1

Sets forth standard language for the creation of the Pura Vida Municipal Management District No. 1 (district) in the city of Mustang Ridge. Sets forth standards, procedures, requirements, and criteria for:

Creation and approval of the district (Sections 4013.0101-4013.0108);

Size, composition, election, and terms of the board of directors of the district (Sections 4013.0201-4013.0203);

Powers and duties of the district (Sections 4013.0301-4013.0311);

General financial provisions and authority to impose taxes and issue bonds and obligations for the district (Sections 4013.0401-4013.0802); and

Dissolution of the district by the city (Section 4013.0901).

Authorizes the district to exercise the power of eminent domain in the manner provided by Section 49.222 (Eminent Domain), Water Code.

SECTION 2. Sets forth the initial boundaries of the district.

SECTION 3. Provides that all requirements of the constitution and the laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 4. (a) Provides that Section 4013.0311, Special District Local Laws Code, as added by Section 1 of this Act, takes effect only if this Act receives a two-thirds vote of all the members elected to each house.

(b) Provides that if this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 4013, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 4013.0311, as follows:

Sec. 4013.0311. NO EMINENT DOMAIN POWER. Prohibits the district from exercising the power of eminent domain.

SECTION 5. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Sheryl ColeDemocrat · Primary Sponsor

Bill Text(with markup)

S.B. No. 3047
relating to the creation of certain municipal management districts;
providing authority to issue bonds; providing authority to impose
assessments, fees, and taxes; granting a limited power of eminent
domain.
       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 4013 to read as follows:
CHAPTER 4013. PURA VIDA MUNICIPAL MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 4013.0101.  DEFINITIONS.  In this chapter:
(1)  "Board" means the district's board of directors.
(2)  "City" means the City of Mustang Ridge.
(3)  "Director" means a board member.
(4)  "District" means the Pura Vida Municipal
Management District No. 1.
Sec. 4013.0102.  NATURE OF DISTRICT. The Pura Vida
Municipal Management District No. 1 is a special district created
under Section 59, Article XVI, Texas Constitution.
Sec. 4013.0103.  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 the city and
other 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 city 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 city services provided in the
district.
Sec. 4013.0104.  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. 4013.0105.  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 tax; or
(4)  legality or operation.
Sec. 4013.0106.  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. 4013.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 4013.0108.  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. 4013.0201.  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. 4013.0202.  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. 4013.0203.  TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, the owner or owners
of a majority of the assessed value of the real property in the
district according to the most recent certified county tax
appraisal roll may submit a petition to the Texas Commission on
Environmental Quality requesting that the commission appoint as
temporary directors the five persons named in the petition.  The
commission shall appoint as temporary directors the five persons
named in the petition.
(b)  The temporary or successor temporary directors shall
hold an election to elect five permanent directors as provided by
Section 4013.0201.
(c)  Temporary directors serve until the earlier of:
(1)  the date permanent directors are elected under
Subsection (b); or
(2)  the fourth anniversary of the effective date of
the Act enacting this chapter.
(d)  If permanent directors have not been elected under
Subsection (b) and the terms of the temporary directors have
expired, successor temporary directors shall be appointed or
reappointed as provided by Subsection (e) to serve terms that
expire on the earlier of:
(1)  the date permanent directors are elected under
Subsection (b); or
(2)  the fourth anniversary of the date of the
appointment or reappointment.
(e)  If Subsection (d) applies, the owner or owners of a
majority of the assessed value of the real property in the district
according to the most recent certified county tax appraisal roll
may submit a petition to the Texas Commission on Environmental
Quality requesting that the commission appoint as successor
temporary directors the five persons named in the petition.  The
commission shall appoint as successor temporary directors the five
persons named in the petition.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 4013.0301.  GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 4013.0302.  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. 4013.0303.  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. 4013.0304.  LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the city, to provide additional law enforcement services
in the district for a fee.
Sec. 4013.0305.  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. 4013.0306.  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. 4013.0307.  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. 4013.0308.  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. 4013.0309.  ADDING OR EXCLUDING LAND. Except as
provided by Section 4013.0310, 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. 4013.0310.   DIVISION OF DISTRICT. (a) The district may
be divided into two or more new districts only if the district:
(1)  has no outstanding bonded debt; and
(2)  is not imposing ad valorem taxes.
(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.
(g)  Any new district created by the division of the district
must hold an election as required by this chapter to obtain voter
approval before the district may impose a maintenance tax or issue
bonds payable wholly or partly from ad valorem taxes.
(h)  Municipal consent to the creation of the district and to
the inclusion of land in the district granted under Section
4013.0506 acts as municipal consent to the creation of any new
district created by the division of the district and to the
inclusion of land in the new district.
Sec. 4013.0311.  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. 4013.0401.  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 county tax appraisal roll.
Sec. 4013.0402.  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 the
board 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. TAXES AND BONDS
Sec. 4013.0501.  TAX ELECTION REQUIRED. (a)  The district
must hold an election in the manner provided by Chapter 49,

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
May 2, 2025

TO:
Honorable Paul Bettencourt, Chair, Senate Committee on Local Government
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB3047 by Zaffirini (Relating to the creation of the Pura Vida Municipal Management District No. 1; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes; granting a limited power of eminent domain.), 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 SB3047

Q

What does Texas SB3047 do?

SB3047 creates three quasi-governmental Municipal Management Districts (Pura Vida, Wolf Creek, and Rivers Market Place) in Travis, Hunt, and Bastrop counties with the authority to levy unlimited ad valorem taxes, impose assessments, and potentially exercise eminent domain. Property owners and businesses within these specific boundaries face immediate financial exposure through new tax layers and super-priority liens that supersede mortgage interests. Implementation Timeline Effective Date: September 1, 2025 (Standard effective date; immediate if 2/3 legislative vote was achieved).

Q

Who authored SB3047?

SB3047 was authored by Texas Senator Judith Zaffirini during the Regular Session.

Q

When was SB3047 signed into law?

SB3047 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB3047?

SB3047 is enforced by Texas Commission on Environmental Quality (TCEQ), Board of Directors: Pura Vida Municipal Management District No. 1, Board of Directors: Wolf Creek Municipal Management District No. 1, Board of Directors: Rivers Market Place Municipal Management District and Texas Comptroller of Public Accounts (regarding Sales Tax for Pura Vida MMD).

Q

How urgent is compliance with SB3047?

The compliance urgency for SB3047 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB3047?

The cost impact of SB3047 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB3047 address?

SB3047 addresses topics including pura vida municipal management district no. 1, special districts & authorities, special districts & authorities--miscellaneous and environmental quality, texas commission on.

Legislative data provided by LegiScanLast updated: November 25, 2025

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