TexasHB 567489th Legislature Regular SessionHouseWALLET

Relating to the creation of the River Ranch Municipal Utility District No. 1; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Sponsored By: Pete Flores (Republican), Terry M. Wilson

Became Law

RIVER RANCH MUNICIPAL UTILITY DISTRICT NO. 1Special Districts & Authorities--Municipal Utility DistrictsSpecial Districts & Authorities--Water & UtilityENVIRONMENTAL QUALITY, TEXAS COMMISSION ON

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 0 costs, 4 mixed.

District Borrowing Carries Property Tax Obligations

The district can borrow for authorized purposes using property taxes, impact fees, revenues, contract payments, grants, or other district funds. Property taxes and tax-backed bonds require voter approval; road tax-backed bonds need two-thirds approval from voters who vote. Total principal for tax-backed road debt cannot exceed 25% of district real property's assessed value when issued. Bonds backed only by non-property-tax revenue or qualifying contract payments need no election. While any tax-backed bonds remain unpaid, annual property taxes are required without a rate or amount limit, subject to Water Code requirements.

New River Ranch District Serves Local Properties

Effective September 1, 2025, the law creates River Ranch Municipal Utility District No. 1 in Williamson County. Legal land descriptions set which properties are inside the district. The district has general water and utility powers and can impose authorized assessments, fees, and taxes. Any new districts formed by legally dividing this district receive the same powers and duties.

Voters Control District Operating And Contract Taxes

The district can tax property for operations and maintenance only after voters approve. The board cannot exceed the tax rate voters approved. A separate property tax can fund contract payments after a majority of voters voting approve the contract terms. Approved terms may let the board change the contract without another vote. The law sets no specific household tax bill.

River Ranch Can Build Local Roads

The district can acquire, build, finance, improve, operate, and maintain roads and related storm drainage. It can transfer these facilities to the state, a county, or a city for operation and maintenance. Projects must meet applicable city construction, zoning, and subdivision rules, including within cities' extended jurisdictions; county rules apply elsewhere. The Texas Transportation Commission must approve plans for roads the state will operate and maintain. The district has no power to take land through eminent domain.

District Elections Follow City Consent

Voters must confirm the district and elect five directors, who serve staggered four-year terms. Each city covering district land, including through its extended jurisdiction, must consent before that election. The district must follow applicable city consent terms and state environmental agency oversight. Owners holding a majority of assessed real property value can petition that agency to appoint five temporary directors. Temporary terms end upon permanent elections or after four years; successor appointments are allowed if permanent directors remain unelected.

Sponsors & Cosponsors

Sponsors

  • Pete Flores

    Republican • Senate

  • Terry M. Wilson

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 13 • No: 0

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

House vote • 5/10/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Land & Resource Management

Yes: 7 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • No: 0 • Other: 1

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House
  2. Filed without the Governor's signature

    6/20/2025House
  3. Sent to the Governor

    5/31/2025House
  4. Signed in the Senate

    5/31/2025Senate
  5. Signed in the House

    5/30/2025House
  6. Reported enrolled

    5/30/2025House
  7. Senate passage reported

    5/29/2025House
  8. Record vote

    5/28/2025Senate
  9. Passed

    5/28/2025Senate
  10. Read 3rd time

    5/28/2025Senate
  11. Record vote

    5/28/2025Senate
  12. Three day rule suspended

    5/28/2025Senate
  13. Vote recorded in Journal

    5/28/2025Senate
  14. Read 2nd time & passed to 3rd reading

    5/28/2025Senate
  15. Laid before the Senate

    5/28/2025Senate
  16. Not again placed on intent calendar

    5/28/2025Senate
  17. Placed on local & uncontested calendar

    5/28/2025Senate
  18. Placed on intent calendar

    5/26/2025Senate
  19. Committee report printed and distributed

    5/23/2025Senate
  20. Recommended for local & uncontested calendar

    5/23/2025Senate
  21. Reported favorably w/o amendments

    5/23/2025Senate
  22. Vote taken in committee

    5/22/2025Senate
  23. Considered in public hearing

    5/22/2025Senate
  24. Scheduled for public hearing on . . .

    5/22/2025Senate
  25. Posting rule suspended

    5/22/2025Senate

Bill Text

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