HB 5686 Texas House · 89th Legislature (2025)

Relating to the creation of the Montgomery County Management District No. 3; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

HB 5686 creates Montgomery County Management District No. 3, a new special district in Montgomery County, Texas, primarily affecting property owners within its boundaries. The bill grants the district authority to issue bonds for infrastructure and services, and to impose assessments, fees, and taxes to fund its operations. Its purpose is to promote economic development, housing, tourism, and public welfare while supplementing - rather than replacing - existing county and city services in the district. The district’s activities must align with Texas Constitution provisions supporting economic diversification and public welfare.

Bill status signed all 5 stages cleared

Introduction

Apr 2025

Committee Review

May 2025

House Passage

May 2025

Senate Passage

May 2025

Signed into Law

Jun 2025

Introduced Apr 23, 2025 Signed Jun 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 3 edits · May 27, 2025

MINOR

The bill was converted from an Engrossed version to an Enrolled version, which is the final version ready for the Governor's signature. The substantive policy content of the Montgomery County Management District No. 3 remains unchanged, though formatting was standardized and some text was reorganized for clarity.

TECHNICAL

Formatting and layout were standardized to match the official Enrolled version format, including consistent spacing, numbering, and capitalization throughout the document.

A new header line was added at the top identifying the document as the 'Enrolled version - Bill Text' with the bill number 89(R) HB 5686.

Page number footers and internal tracking codes (like 'JTZ-F') were removed from the final Enrolled version.

Introduced → Engrossed · 8 edits · May 25, 2025

MODERATE

This bill creates a new Montgomery County Management District No. 3 to provide public services and economic development in the area. The text shows formatting changes from an old draft to an engrossed version, but the substantive policy content remains the same. The bill establishes the district's powers, governance structure, funding mechanisms including bonds and taxes, and procedures for adding land or dividing the district.

Scope change

The bill creates a new special district in Montgomery County with powers to issue bonds, impose assessments and taxes, and provide various public services including economic development, infrastructure, and parking facilities.

TECHNICAL

The document shows formatting changes from a draft version to an engrossed version, including header updates, line number removal, and text reorganization for final legislative text.

DEFINITION

Defines key terms including Board (district's board of directors), Commission (Texas Commission on Environmental Quality), County (Montgomery County), Director (board member), and District (Montgomery County Management District No. 3).

GOVERNANCE

Establishes a 5-member board of directors serving staggered 4-year terms, with initial directors appointed for specific positions with expiration dates in 2027 and 2029.

FISCAL

Authorizes the district to issue bonds, impose assessments, levy operation and maintenance taxes, and collect sales and use taxes subject to voter approval.

ELIGIBILITY

Allows the district to be included in tax increment reinvestment zones and tax abatement reinvestment zones under Texas Tax Code chapters 311 and 312.

REQUIREMENT

Requires voter elections for imposing ad valorem taxes and sales/use taxes, and requires written petitions signed by property owners for financing services with assessments.

ENFORCEMENT

Establishes that assessments create first liens on property that are superior to other liens except for county, school district, or municipal ad valorem taxes.

TIMELINE

Sets initial director term expiration dates of June 1, 2027 for positions 1-3 and June 1, 2029 for positions 4-5.

Floor votes · House May 15, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 27, 2025

Upper · Passed

Signed in the Senate

upper

May 27, 2025

Lower · Passed

Signed in the House

lower

May 25, 2025

Lower · Passed

Senate passage reported

lower

May 25, 2025

Upper · Passed

Passed

upper

May 20, 2025

Upper · Passed

Committee report printed and distributed

upper

May 20, 2025

Upper · Passed

Reported favorably w/o amendments

upper

May 19, 2025

Upper · Passed

Vote taken in committee

upper

May 16, 2025

Committee

Referred to Local Government

upper

May 16, 2025

Introduced

Read first time

upper

May 15, 2025

Introduced

Received from the House

upper

May 15, 2025

Lower · Passed

Passed

lower

May 14, 2025

Lower · Passed

Passed to engrossment

lower

May 8, 2025

Lower · Passed

Committee report sent to Calendars

lower

May 8, 2025

Lower · Passed

Committee report distributed

lower

Apr 30, 2025

Lower · Passed

Reported favorably w/o amendment(s)

lower

Apr 29, 2025

Lower · Passed

Left pending in committee

lower

Apr 29, 2025

Lower · Passed

Testimony taken/registration(s) recorded in committee

lower

Apr 24, 2025

Signed into law

Transmitted to the Governor

lower

Apr 23, 2025

Committee

Referred to Intergovernmental Affairs

lower

Apr 23, 2025

Introduced

Read first time

lower

2 primary · 0 co-sponsors