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

Government Affairs & Regulatory Compliance Analysis

SB3047: Government Affairs Overview

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.

Sen. Judith Zaffirini·Senate Bill·Regular Session

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

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

Business Impact

Who SB3047 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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SB3047
Moderate
Relating to the creation of certain municipal management districts; providing authority to issue bonds; providing authority to impose assessments, fee...
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
Board of Directors: Pura Vida Mu...Board of Directors: Rivers Marke...Board of Directors: Wolf Creek M...TCEQ+1 more
Primary Author: Sen. Judith Zaffirini
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 (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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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
Passed Senate
May 13, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsPura Vida Municipal Management District No. 1Special Districts & AuthoritiesSpecial Districts & Authorities--miscellaneousEnvironmental Quality, Texas Commission On
03

Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Sheryl ColeDemocrat · Primary Sponsor

Bill Text(with markup)

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Judith Zaffirini

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Related by Topic

View more Pura Vida Municipal Management District No. 1 legislation
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.

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

Q

How significant are the changes in SB3047?

The regulatory priority for SB3047 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

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.

Q

What are the key dates for SB3047?

Key dates for SB3047: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB3047?

SB3047 establishes the following penalties: civil penalty of Variable (Amount of unpaid assessment + interest + collection expenses + attorney's fees) for Failure to pay district assessments results in a first and prior lien against the property, superior to most other liens, enforceable via foreclosure.. Consult with legal counsel for specific applicability to your situation.

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Legislative data provided by LegiScanLast updated: January 11, 2026