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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB3052

Regular Session

Relating to the powers and duties and validating certain acts and proceedings of the Cole Ranch Improvement District No. 1 of Denton County, Texas.

Government Affairs & Regulatory Compliance Analysis

SB3052: Government Affairs Overview

SB3052 imposes a strict statutory debt ceiling on the Cole Ranch Improvement District No. 1, limiting bond principal to 10% of the assessed value of real property. This legislation immediately alters the financing landscape for developers and bondholders within the District by capping leverage and retroactively validating prior District proceedings to secure legal stability.

Sen. Tan Parker·Senate Bill·Regular Session

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

Cole Ranch Improvement District No. 1 Board of Directors • Texas Attorney General (Public Finance Division)

Business Impact

Who SB3052 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

  • 1Finance Team Briefing: Financial analysts and bond counsel must update feasibility models to include the "10% Test" for both Ad Valorem and Contract Revenue bonds.
  • 2No New Certifications: No new personnel certifications are required.

Estimated Cost Impact

lowMinimal cost impact anticipated.

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SB3052
Low
Relating to the powers and duties and validating certain acts and proceedings of the Cole Ranch Improvement District No. 1 of Denton County, Texas.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Cole Ranch Improvement District ...Texas Attorney General
Primary Author: Sen. Tan Parker
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 (Assuming standard voting thresholds).
  • Compliance Deadline: September 1, 2025. Any bond issuance closing on or after this date must comply with the 10% cap.
  • Agency Rulemaking: No formal rulemaking required. However, the Texas Attorney General’s Public Finance Division will enforce these caps during the bond transcript review process immediately upon effectiveness.

Immediate Action Plan

  • Audit Debt Capacity: Immediately calculate the current debt-to-assessed-value ratio for the District using the most recent Denton Central Appraisal District data.
  • Accelerate Pending Issuances: If the District is currently over the 10% threshold or near it, accelerate any planned bond closings to finalize before September 1, 2025.
  • Litigation Review: If you are currently engaged in litigation challenging District procedural acts, consult counsel immediately; Section 2 of the bill likely renders those challenges moot unless a final judgment is imminent.
  • Update Disclosure Documents: Ensure future Offering Memorandums explicitly disclose the statutory 10% cap as a material limitation on future indebtedness.

Operational Changes Required

Contracts

  • Master Development Agreements (MDAs): Legal counsel must review existing MDAs. Reimbursement obligations contingent on bond proceeds are now legally subordinate to the 10% assessed value cap. If current values do not support the debt, reimbursement timelines must be extended.
  • Inter-local Agreements: Contracts involving revenue bonds supported by multiple districts must be audited. The 10% cap applies to the *aggregate* assessed value of all districts obligated to make payments.

Hiring/Training

  • Finance Team Briefing: Financial analysts and bond counsel must update feasibility models to include the "10% Test" for both Ad Valorem and Contract Revenue bonds.
  • No New Certifications: No new personnel certifications are required.

Reporting & Record-Keeping

  • Deal Binders: Bond transcripts submitted to the Attorney General must now include a specific certification or schedule demonstrating that the principal amount does not exceed 10% of the *certified* assessed value.
  • Aggregate Debt Schedules: For contract revenue bonds, maintain a consolidated debt schedule for all participating districts to prove aggregate compliance.

Fees & Costs

  • No New Statutory Fees: The bill does not impose new filing fees.
  • Financing Liquidity: Developers may face delayed liquidity if assessed values are insufficient to support the desired bond issuance under the new cap.

Strategic Ambiguities & Considerations

  • "Assessed Value" Definition: The statute does not explicitly distinguish between *preliminary* and *certified* tax rolls. The Attorney General typically requires Certified Rolls for strict compliance. Relying on preliminary estimates to push a deal under the 10% cap carries significant risk of rejection or future litigation.
  • Scope of "Contract Payments": The definition of contracts subject to the revenue bond cap (referencing Section 3981.0504(2)) may be subject to interpretation. If a contract is for services rather than debt support, its inclusion in the cap calculation is a gray area requiring a formal legal opinion.

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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 14, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsCole Ranch Improvement District No. 1 of Denton CountySpecial Districts & AuthoritiesSpecial Districts & Authorities--miscellaneousBonds
03

Senate Authors

Sen. Tan ParkerRepublican · Primary Author

House Sponsor

Rep. Richard HayesRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Tan Parker

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Related by Topic

View more Cole Ranch Improvement District No. 1 of Denton County legislation
Quick Reference

Frequently Asked Questions

Common questions about SB3052

Q

What does Texas SB3052 do?

SB3052 imposes a strict statutory debt ceiling on the Cole Ranch Improvement District No. 1, limiting bond principal to 10% of the assessed value of real property. This legislation immediately alters the financing landscape for developers and bondholders within the District by capping leverage and retroactively validating prior District proceedings to secure legal stability.

Q

Who authored SB3052?

SB3052 was authored by Texas Senator Tan Parker during the Regular Session.

Q

When was SB3052 signed into law?

SB3052 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB3052?

SB3052 is enforced by Cole Ranch Improvement District No. 1 Board of Directors and Texas Attorney General (Public Finance Division).

Q

How significant are the changes in SB3052?

The regulatory priority for SB3052 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB3052?

The cost impact of SB3052 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB3052 address?

SB3052 addresses topics including cole ranch improvement district no. 1 of denton county, special districts & authorities, special districts & authorities--miscellaneous and bonds.

Q

What are the key dates for SB3052?

Key dates for SB3052: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026