Texas House Bill HB4978

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to the creation of municipal utility districts in the extraterritorial jurisdiction of a municipality.

Impact

By instituting a clearer framework for MUD creation, HB 4978 aims to facilitate economic growth and infrastructure development in Texas. Municipalities will be required to grant or deny consent within a specified timeframe, and if they fail to do so, the Texas Commission on Environmental Quality (TCEQ) may proceed with the approval of the MUD, provided certain conditions are met. This could significantly affect how local governance interacts with development projects, particularly in areas where access to water and wastewater services is critical for residential and commercial growth.

Summary

House Bill 4978 seeks to address the creation of municipal utility districts (MUDs) within the extraterritorial jurisdiction of municipalities. This bill outlines the procedures and requirements that municipalities must follow in order to consent to the establishment of MUDs, which typically provide essential services such as water and wastewater. The intent of the bill is to streamline the process for setting up these districts when municipalities either fail to act or explicitly refuse consent. This change is designed to ensure that development in these areas is not delayed due to administrative hurdles at the city level.

Contention

The bill has generated discussion regarding the balance of power between local governments and state authority. Proponents argue that the bill protects developers and residents who might otherwise face unnecessary delays in obtaining services. However, some critics raise concerns that it undermines local governance by diminishing the authority of municipalities to manage their jurisdictions effectively. They fear that such a move could lead to developments that do not align with community needs or that bypass local environmental and planning regulations.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 42. Extraterritorial Jurisdiction Of Municipalities
  • Section: 042

Water Code

• Chapter 54. Municipal Utility Districts
  • Section: 016
  • Section: New Section

Special District Local Laws Code

• Chapter 8324. Lake Weatherford Municipal Utility District No. 1
  • Section: 107

• Chapter 8325. Lake Weatherford Municipal Utility District No. 2
  • Section: 107