BILL ANALYSIS Senate Research Center S.B. 1965 89R11630 SCR/JTZ-D By: King Local Government 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT With few exceptions, Texas law requires the creation of a special district to be approved by either the state legislature or the Texas Commission on Environmental Quality (TCEQ). This approval process requires the special district to provide local notice and an opportunity for public participation. Special districts are circumventing these notice and approval requirements by annexing noncontiguous land miles away from the district's established boundaries. When this happens, the special district gains authority over the annexed land to assess taxes, issue bonds, and condemn property, even though the surrounding community may not be aware. S.B. 1965 seeks to solve this problem by prohibiting certain special districts from annexing noncontiguous land located more than 200 feet from the special district's boundaries at the time of the proposed addition. The bill also requires special districts to provide additional notice, by certified mail, of a hearing to consider a petition to annex land. S.B. 1965 applies to municipal utility districts (MUDs), special utility districts (SUDs), municipal management districts (MMDs), water improvement districts (WIDs), and water control and improvement districts (WCIDs). As proposed, S.B. 1965 amends current law relating to the addition of territory to certain special districts. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 375.043(a), Local Government Code, to provide that, in all areas of conflict regarding land annexed by a municipal management district, Section 54.750, Water Code, takes precedence over all prior statutory enactments regarding a district to which Chapter 375 (Municipal Management Districts in General) applies. SECTION 2. Amends Section 51.7131, Water Code, to authorize a water control and improvement district, notwithstanding Subchapter O (Adding and Excluding Territory and Consolidating Districts), to substitute land in the manner provided by certain sections, including Section 54.750. SECTION 3. Amends Subchapter O, Chapter 51, Water Code, by adding Sections 51.715 and 51.7151, as follows: Sec. 51.715. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a water control and improvement district from adding noncontiguous land to the district under this subchapter or Section 49.301 (Adding Land By Petition of Landowner) or 49.302 (Adding Land By Petition of Less Than All the Landowners) if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition. (b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments. Sec. 51.7151. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a water control and improvement district that holds a hearing under Section 49.302 to annex land to the district , in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and a municipality if the municipality's corporate boundaries include or are adjacent to the area proposed to be annexed. SECTION 4. Amends Subchapter H, Chapter 54, Water Code, by adding Sections 54.750 and 54.751, as follows: Sec. 54.750. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a district from adding noncontiguous land to the district under Subchapter (H) (Adding and Excluding Territory; Consolidating and Dissolving Districts) or Section 49.301 or 49.302 if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition. (b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments. Sec. 54.751. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a municipal utility district that holds a hearing under Section 49.302 to annex land to the district, in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and a municipality if the municipality's corporate boundaries include or are adjacent to the area proposed to be annexed. SECTION 5. Amends Subchapter O, Chapter 55, Water Code, by adding Sections 55.701 and 55.702, as follows: Sec. 55.071. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a water improvement district from adding noncontiguous land to the district under Section 49.301 or 49.302 if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition. (b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments. Sec. 55.702. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a water improvement district that holds a hearing under Section 49.302 to annex land to the district, in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and a municipality if the municipality's corporate boundaries include or are adjacent to the area proposed to be annexed. SECTION 6. Amends Subchapter H, Chapter 65, Water Code, by adding Sections 65.701 and 65.702, as follows: Sec. 65.701. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a special utility district from adding noncontiguous land to the district under Section 49.301 or 49.302 if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition. (b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments. Sec. 65.702. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a special utility district that holds a hearing under Section 49.302 to annex land to the district, in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and any municipality that has territory in the area proposed to be annexed. SECTION 7. Makes application of this Act prospective. SECTION 8. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 1965
89R11630 SCR/JTZ-D By: King
Local Government
4/4/2025
As Filed
Senate Research Center
S.B. 1965
89R11630 SCR/JTZ-D
By: King
Local Government
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
With few exceptions, Texas law requires the creation of a special district to be approved by either the state legislature or the Texas Commission on Environmental Quality (TCEQ). This approval process requires the special district to provide local notice and an opportunity for public participation. Special districts are circumventing these notice and approval requirements by annexing noncontiguous land miles away from the district's established boundaries. When this happens, the special district gains authority over the annexed land to assess taxes, issue bonds, and condemn property, even though the surrounding community may not be aware.
S.B. 1965 seeks to solve this problem by prohibiting certain special districts from annexing noncontiguous land located more than 200 feet from the special district's boundaries at the time of the proposed addition. The bill also requires special districts to provide additional notice, by certified mail, of a hearing to consider a petition to annex land.
S.B. 1965 applies to municipal utility districts (MUDs), special utility districts (SUDs), municipal management districts (MMDs), water improvement districts (WIDs), and water control and improvement districts (WCIDs).
As proposed, S.B. 1965 amends current law relating to the addition of territory to certain special districts.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 375.043(a), Local Government Code, to provide that, in all areas of conflict regarding land annexed by a municipal management district, Section 54.750, Water Code, takes precedence over all prior statutory enactments regarding a district to which Chapter 375 (Municipal Management Districts in General) applies.
SECTION 2. Amends Section 51.7131, Water Code, to authorize a water control and improvement district, notwithstanding Subchapter O (Adding and Excluding Territory and Consolidating Districts), to substitute land in the manner provided by certain sections, including Section 54.750.
SECTION 3. Amends Subchapter O, Chapter 51, Water Code, by adding Sections 51.715 and 51.7151, as follows:
Sec. 51.715. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a water control and improvement district from adding noncontiguous land to the district under this subchapter or Section 49.301 (Adding Land By Petition of Landowner) or 49.302 (Adding Land By Petition of Less Than All the Landowners) if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition.
(b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments.
Sec. 51.7151. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a water control and improvement district that holds a hearing under Section 49.302 to annex land to the district , in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and a municipality if the municipality's corporate boundaries include or are adjacent to the area proposed to be annexed.
SECTION 4. Amends Subchapter H, Chapter 54, Water Code, by adding Sections 54.750 and 54.751, as follows:
Sec. 54.750. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a district from adding noncontiguous land to the district under Subchapter (H) (Adding and Excluding Territory; Consolidating and Dissolving Districts) or Section 49.301 or 49.302 if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition.
(b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments.
Sec. 54.751. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a municipal utility district that holds a hearing under Section 49.302 to annex land to the district, in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and a municipality if the municipality's corporate boundaries include or are adjacent to the area proposed to be annexed.
SECTION 5. Amends Subchapter O, Chapter 55, Water Code, by adding Sections 55.701 and 55.702, as follows:
Sec. 55.071. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a water improvement district from adding noncontiguous land to the district under Section 49.301 or 49.302 if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition.
(b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments.
Sec. 55.702. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a water improvement district that holds a hearing under Section 49.302 to annex land to the district, in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and a municipality if the municipality's corporate boundaries include or are adjacent to the area proposed to be annexed.
SECTION 6. Amends Subchapter H, Chapter 65, Water Code, by adding Sections 65.701 and 65.702, as follows:
Sec. 65.701. LIMITATION ON ADDITION OF NONCONTIGUOUS LAND. (a) Prohibits a special utility district from adding noncontiguous land to the district under Section 49.301 or 49.302 if the noncontiguous land is located more than 200 feet from the boundaries of the district at the time of the proposed addition.
(b) Provides that, in all areas of conflict, Subsection (a) takes precedence over all prior statutory enactments.
Sec. 65.702. ADDING LAND BY PETITION OF LESS THAN ALL LANDOWNERS. Requires a special utility district that holds a hearing under Section 49.302 to annex land to the district, in addition to the notice requirements of that section, to provide notice of the hearing by certified mail at least 14 days before the date of the hearing to each landowner in the area proposed to be annexed as shown by the most recent certified tax roll of the central appraisal district of the county or counties in which the area is located and any municipality that has territory in the area proposed to be annexed.
SECTION 7. Makes application of this Act prospective.
SECTION 8. Effective date: September 1, 2025.