Bill > HB5555

This bill modifies various regulations concerning municipal utility districts (MUDs) in Texas, introducing several key changes. The bill prohibits a person from serving on both an MUD board and a property owners' association board simultaneously, and establishes new pre-petition notice requirements for proposed districts, mandating that county commissioners and groundwater conservation districts be notified at least 30 days before a district creation petition is filed. The bill also sets new director qualifications, requiring at least three directors to be qualified voters residing within the district and limiting director terms to a maximum of four years. Additionally, the bill imposes significant tax rate restrictions, capping the interest and sinking fund rate at 50 cents per $100 of assessed value and limiting the total ad valorem tax rate to $1.25 per $100 of assessed valuation in any tax year. The legislation also introduces more stringent meeting and budget transparency requirements, such as posting meeting notices for at least three business days and including a physical copy of the budget with meeting notices. These changes aim to increase accountability, transparency, and governance standards for municipal utility districts in Texas, with the provisions set to take effect on September 1, 2025.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5555