BILL ANALYSIS

Senate Research Center	H.B. 5658
89R13212 MCF-F	By: Patterson (Hagenbuch)
	Local Government
	5/21/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The bill author has informed the committee that an area located within Denton County would benefit from the creation of a management district. H.B. 5658 seeks to provide for the creation of such a district. 

H.B. 5658 amends current law relating to the creation of the Craver Ranch Municipal Management District No. 1, provides authority to issue bonds, provides authority to impose assessments and fees, 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 4020, as follows:

CHAPTER 4020. CRAVER RANCH MUNICIPAL MANAGEMENT DISTRICT NO. 1

Sets forth standard language for the creation of the Craver Ranch Municipal Management District No. 1 (district) in the City of Denton. Sets forth standards, procedures, requirements, and criteria for:

General provisions, creation, purpose, and approval of the district (Sections 4020.0101-4020.0109);

Size, composition, appointment, compensation, and terms of the board of directors of the district (board), including the naming of the initial directors (Sections 4020.0201-4020.0203);

Powers and duties of the district (Sections 4020.0301-4020.0312);

General financial provisions and authority to impose a tax and issue bonds and obligations for the district (Sections 4020.0401-4020.0503); and

Dissolution of the district by the board (Section 4020.0901).

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 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 4020.0312, 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 (Powers and Duties), Chapter 4020, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 4020.0312, as follows:

Sec. 4020.0312. NO EMINENT DOMAIN POWER. Prohibits the district from exercising the power of eminent domain.

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