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.

ModeratePlan for compliance

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)

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

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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Legislative Timeline

This bill's path through the Texas Legislature

Filed

Filed

TopicsPura Vida Municipal Management District No. 1 Special Districts & Authorities Special Districts & Authorities--miscellaneous Environmental Quality, Texas Commission On

Official Analysis

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Senate Authors

Sen. Judith ZaffiriniDemocrat · Primary Author

House Sponsor

Rep. Sheryl ColeDemocrat · Primary Sponsor

Bill Text(with markup)

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More from Sen. Judith Zaffirini

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Frequently Asked Questions

Common questions about SB3047

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).

Who authored SB3047?

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

When was SB3047 signed into law?

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

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).

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.

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.

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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