HB 3605

84(R) - 2015
Senate Intergovernmental Relations
Senate Intergovernmental Relations

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


DeWayne Burns

Bill Caption

Relating to the creation of the Joshua Farms Municipal Management District No. 2; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose an ad valorem tax, assessments, or fees.

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

HB 3605 seeks to create the Joshua Farms Municipal Management District No. 2 to: further the public purposes of developing and diversifying the economy of the state; eliminate unemployment and underemployment; develop or expand transportation and commerce; promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public; provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a community and business center; and promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty.

The district would not be able to impose an ad valorem tax. 

The district could not establish, operate, maintain, or finance a police or fire department without the consent of the city by ordinance or resolution.

The addition or removal of district territory would need to be approved by the city.

The district would not be authorized to construct, acquire, maintain, or operate a toll road.

The district would have eminent domain authority. 

The district would be allowed to undertake an improvement project or service that confers a special benefit on a definable area in the district and levy and collect a special assessment on benefited property in the district. 

the district may borrow money for a district purpose, including the acquisition or construction of improvement projects authorized by this chapter and the reimbursement of a person who develops or owns an improvement project authorized by this chapter, by issuing bonds, notes, time warrants, or other obligations, or by entering into a contract or other agreement payable wholly or partly from an assessment, a contract payment, a grant, revenue from a zone created under Chapter 311 or 312, Tax Code, other district revenue, or a combination of these sources.

The district would be allowed to impose an assessment on property in the district to pay for an obligation or an authorized improvement project.

Single-family detached residential property, duplexes, triplexes, and fourplexes would not be exempt from assessments, taxes, or other requirement for payment, construction, alteration, or dedication.

Vote Recommendation Notes

HB 3605 would give this new management district authority allowing it to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district

The Joshua Farms Municipal Management District No. 2 would be a part of a broader class of special districts known as Municipal Management Districts (MMD). This bill would grant municipal-type authority to a non-municipal entity, essentially creating a city within a city that lacks true accountability, which does not bode well towards supporting our liberty principles.

For these reasons, we oppose HB 3605 because it is not the proper role of government to spur economic growth development. The idea that government can and should play such a role in the economy has always been an insidious backdoor towards more government which distorts the marketplace, picks economic winners and losers, and infringes on individual liberty. For these reasons we oppose HB 3605.

The second chamber sponsor is Senator Birdwell.