HB5650

HB5650 creates Travis County Municipal Utility District No. 40 with general municipal-utility-district powers and authority for roads and related drainage. Its initial territory is three specifically described tracts totaling about 56.62 acres in the Augustus Kincheloe Survey near FM1327, U.S.183 and Tom Sassman Road. The statutory boundary description controls; this is not a countywide district.

Creation must be confirmed by district voters, who also elect five permanent directors. Before that election, every municipality whose boundaries or extraterritorial jurisdiction includes district land must give the required consent. Owners representing a majority of assessed real-property value may petition the Texas Commission on Environmental Quality to appoint five named temporary directors. Permanent directors have staggered four-year terms. Road projects must meet applicable city or county requirements; state-maintained roads require Texas Transportation Commission approval.

Property taxes and property-tax-backed bonds need voter approval. Road bonds backed by property taxes require approval by two-thirds of voters participating, and their principal at issuance may not exceed one-fourth of assessed real-property value. Revenue-backed or specified contract-payment bonds can be issued without a bond election, but the underlying contract tax needs its own voter approval. The operating-tax rate cannot exceed the approved rate; the separate continuing tax for outstanding tax-backed debt has no statutory rate or amount limit in this act.

The bill became law without the governor’s signature on June 20, 2025, effective immediately. Its two-thirds legislative vote condition was met (House102–46; Senate27–4), so the fallback provision denying eminent-domain power did not take effect. This does not exempt the district from applicable general-law limits on taking property. Sources: final law, including boundaries and votes and history.