HB 5555 — Relating to municipal utility districts; limiting the rate of a tax.

Summary

Relating to municipal utility districts; limiting the rate of a tax.

Bill Text

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 8 section(s) of the Texas statutes: Section 209.00591, Property Code, Section 54.0135, Water Code, Section 54.015, Water Code, Section 54.0161, Water Code, Section 54.022, Water Code, Section 54.102, Water Code.

• Section 209.00591, Property Code

  (a-4) A person may not serve on the board of a property owners' association if the person serves as a director of a municipal utility district under Chapter 54, Water Code.

  amended

• Section 54.0135, Water Code

  Sec. 54.0135. PRE-PETITION NOTICE TO CERTAIN COUNTIES. (a) This section applies only to a proposed district described by Section 54.0161(a). (b) At least 30 days before a petition requesting creation of a proposed district is filed with the commission under Section 54.014, notice must be sent by certified mail to the commissioners court of each county in which the proposed district is to be located. The notice must: (1) be sent to the address of the main county mailbox, and the address of each county commissioner and county judge; (2) generally describe the boundaries of the land to be included in the proposed district, including identifying landmarks such as adjacent streets or geographic features such as rivers or lakes, and if possible, by metes and bounds or by lot and block number if there is a recorded map or plat and survey of the area to be included in the district; and (3) inform the commissioners court of the right to: (A) respond to the notice provided under this section; (B) review the petition requesting creation of the proposed district; and (C) submit a written opinion on the creation of the proposed district under Section 54.0161. (c) Notice under this section must be sent by certified mail at least 30 days before the date a petition requesting creation of the proposed district is filed with the commission under Section 54.014.

  added

• Section 54.015, Water Code

  and → (4) for a district described by Section 54.0161(a), include a copy of the notice described by Section 54.0135.

  amended

• Section 54.0161, Water Code

  only all of which is to be → : (1) partly or wholly , including proposed districts which overlap more than one county; or (2) partly or wholly located inside the extraterritorial jurisdiction of a municipality

  amended

• Section 54.022, Water Code

  (d) Notwithstanding any other subsection, the district shall immediately schedule an election to elect permanent directors once 75 percent of the plots under the district's jurisdiction are leased sold, or conveyed in some manner.

  amended

• Sec. 54.037. REVIEW OF CREATION BY A GROUNDWATER CONSERVATION DISTRICT. (a) This section applies to a proposed district, located in or within five miles of the jurisdiction of a groundwater conservation district, as that term is defined by Chapter 36. (a-1) At least 30 days before a petition requesting creation of a proposed district is filed with the commission under Section 54.014, notice must be sent by certified mail to the groundwater conservation district in which the proposed district is to be located or in proximity to, The notice must: (1) be sent to the mailing address of the groundwater conservation district; (2) generally describe the boundaries of the land to be included in the proposed district, including identifying landmarks such as adjacent streets or geographic features such as rivers or lakes, and if possible, by metes and bounds or by lot and block number if there is a recorded map or plat and survey of the area to be included in the district; and (3) inform the groundwater conservation district of the right to: (A) respond to the notice provided under this section; (B) review the petition requesting creation of the proposed district; and (C) submit a written opinion on the creation of the proposed district under Section 54.0161. (a-2) The groundwater conservation district in which the district is to be located, or in proximity to, may review the petition for creation and other evidence and information relating to the proposed district that the groundwater conservation district consider necessary. Petitioners for the creation of a district shall submit to the groundwater conservation district any relevant information requested by the groundwater conservation district. (b) In the event the groundwater conservation district opts to submit information to the commission or to make a recommendation regarding the creation of the proposed district, the groundwater conservation district shall submit to the commission, at least 10 days before the date set for action on the petition, a written opinion stating: (1) whether the groundwater conservation district recommends the creation of the proposed district; and (2) any findings, conclusions, and other information that the groundwater conservation district thinks would assist the commission in making a final determination on the petition. (c) In passing on a petition subject to this section, the commission shall consider the written opinion submitted by the groundwater conservation district.

  amended

• Section 54.102, Water Code

  (a) (a-1) a minimum of three directors must be qualified voters within the district, and reside within the district. (b) A person is disqualified from serving as a director if that person is serving on the board of a property owners' association under Chapter 209, Property Code.

  amended

• LENGTH OF TERMS FOR DIRECTORS. Notwithstanding any other Chapter, the length of a term for a director shall not exceed four years. This Section does not impose term limits.

  amended

• Section 54.104, Water Code

  (a) Notwithstanding Section 49.062, Water Code or Section 551.043, Government Code, a notice of a meeting of the district's board must be posted in a place readily accessible to the general public at all times for at least three business days before the scheduled date of the meeting, except as provided by Sections 551.044, 551.045, and 551.046, Government Code. (b) If the board of a district conducts meetings at least quarterly, the board shall conduct a meeting at a designated meeting location inside the district or within 10 miles of the boundary of the district at least once per quarter. Notwithstanding Chapter 551, Government Code, a district to which this section applies may satisfy the requirements of this Subsection by conducting quarterly meetings by telephone conference call or video conference call. A meeting to discuss the tax rate of the district must be conducted in person. (d) The notice of a meeting required to be posted under this Section, Sec. 551.043(a), Government Code or Sec. 49.063, Water Code, at which the district's board will discuss or adopt a budget for the district or board must include a physical copy of the budget.

  added

• Section 54.605, Water Code

  Sec. 54.605 APPLICABILITY OF TAX HEARINGS; AUTOMATIC ELECTIONS FOR CERTAIN TAXES; LIMITATIONS ON TAX RATES; GENERAL RULE. (a) For the purposes of providing notice of a tax hearing and automatic elections to approve tax rates under Sections 49.236, 49.23601, 49.23602, and 49.23603, and notwithstanding those sections, a district under this section shall be considered a developed district under Section 49.23602, regardless of whether the district has financed, completed, and issued all bonds to pay for all lands, works, improvements, facilities, plants, equipment, and appliances necessary to serve at least 95 percent of the projected build-out of the district in accordance with the purposes for its creation or the purposes authorized by the constitution, this code, or any other law. (b) For the purposes of providing notice of a tax hearing under Section 49.236, notices shall also apply and include reference to the district's interest and sinking fund rate. (c) For the purposes of an automatic election to approve tax rates under Section 49.23602, the district shall also account for its interest and sinking fund rate under Sec. 49.23602(a)(4) and Sec. 49.23602(c). (d) Notwithstanding any other statutes, the district shall not assess or impose an interest and sinking fund rate in any tax year that exceeds a rate of 50 cents on the $100 of assessed value. (e) Notwithstanding any other statutes, no district shall levy an ad valorem tax rate in excess of One Dollar and Twenty Five Cents ($1.25) on the $100 of assessed valuation in any one tax year for combined district taxes.

  added

Action History

1. May 01, 2025

   Left pending in committee

2. May 01, 2025

   Testimony taken/registration(s) recorded in committee

3. May 01, 2025

   Considered in public hearing

4. May 01, 2025

   Scheduled for public hearing on . . .

5. April 07, 2025

   Referred to Land & Resource Management

6. April 07, 2025

   Read first time

7. March 14, 2025

   Filed

Sponsors

• Erin Zwiener · Primary

Subjects