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.

LowStandard timeline

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)

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

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

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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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Legislative Timeline

This bill's path through the Texas Legislature

TopicsColmena Ranch Municipal Management District No. 1 Collin County Special Districts & Authorities Special Districts & Authorities--miscellaneous

Official Analysis

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House Authors

Rep. Keresa RichardsonRepublican · Primary Author

Senate Sponsor

Sen. Angela PaxtonRepublican · Primary Sponsor

Bill Text(with markup)

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Related Legislation

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Frequently Asked Questions

Common questions about HB5682

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.

Who authored HB5682?

HB5682 was authored by Texas Representative Keresa Richardson during the Regular Session.

When was HB5682 signed into law?

HB5682 was signed into law by Governor Greg Abbott on June 20, 2025.

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).

How urgent is compliance with HB5682?

The compliance urgency for HB5682 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

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.

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.

Legislative data provided by LegiScanLast updated: November 25, 2025

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