Bill > HB5650

This bill creates the Travis County Municipal Utility District No. 40 (MUD), a special-purpose local government entity that will serve public purposes in Travis County, Texas. The district will be governed by a five-member board of directors and initially covers approximately 56.62 acres of land divided into three tracts. The MUD has the power to provide municipal utility services, construct and maintain infrastructure like roads and storm drainage, and issue bonds to finance these projects. To establish the district, temporary directors must first obtain consent from local municipalities and hold an election to confirm its creation and elect permanent directors. The district can impose taxes and fees with voter approval, but has restrictions on using ad valorem (property) taxes for road projects, which require a two-thirds voter majority. Importantly, the district's ability to use eminent domain depends on receiving a two-thirds vote in the legislature - if it does not, the bill includes a provision explicitly prohibiting the district from exercising eminent domain powers. The district must comply with local municipal regulations and can issue bonds payable from various sources including taxes, impact fees, and contract payments.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5650