TexasHB 568889th Legislature Regular SessionHouseWALLET

Relating to the creation of the San Benito 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: Adam Hinojosa (Republican), Janie Lopez

Became Law

SAN BENITO MUNICIPAL UTILITY DISTRICT NO. 1Special Districts & Authorities--Municipal Utility DistrictsSpecial Districts & Authorities--Water & Utility

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

San Benito district cannot seize property

Beginning September 1, 2025, the district cannot take private property through eminent domain under this law. This ban applies because the act did not receive a two-thirds vote of all elected members in each legislative house.

District property taxes need voter approval

Beginning September 1, 2025, the district can tax property for operating and maintenance costs only after voters approve. The board sets the rate, but cannot exceed the voter-approved rate. A separate tax can pay district contracts after a majority of voters voting at a special-purpose election approve the contract. That contract can let the board change its terms without another vote. These taxes can raise property owners’ bills, but the law sets no rate or household bill amount.

District borrowing brings tax safeguards and risks

Beginning September 1, 2025, the district can issue bonds for authorized projects, using property taxes, impact fees, revenues, contract payments, or grants. Bonds backed by non-property-tax revenues or qualifying contract payments need no election; property taxes and property-tax-backed bonds require voter approval. Tax-backed road bonds require approval from two-thirds of voters voting, and total tax-backed road debt cannot exceed 25% of assessed real property value. Once bonds backed partly or fully by property taxes are issued, the district must provide an annual tax until they are repaid. That continuing tax has no limit on its rate or total amount; the law sets no household bill.

New San Benito district gets elected leadership

Beginning September 1, 2025, the law creates San Benito Municipal Utility District No. 1, covering about 228.77 acres in Cameron County. Each municipality with district land in its city limits or surrounding jurisdiction must consent before the confirmation election. Voters then decide whether to confirm the district and elect three directors, who serve staggered four-year terms. Temporary directors serve until permanent directors are elected or the law’s fourth anniversary; successors can be appointed afterward. If owners representing a majority of assessed real property value petition for five named successors, the state environmental agency must appoint them.

San Benito district can build roads

Beginning September 1, 2025, the district can acquire, build, finance, improve, operate, and maintain roads and related storm drainage. It can transfer these improvements to the state, a county, or a municipality. Projects must meet applicable local construction, zoning, subdivision, and regulatory rules, plus municipal consent conditions. The Texas Transportation Commission must approve plans for roads the state will operate and maintain. The law does not require a particular project or set its cost.

Sponsors & Cosponsors

Sponsors

  • Adam Hinojosa

    Republican • Senate

  • Janie Lopez

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 120 • No: 16

Senate vote • 5/25/2025

Record vote

Yes: 27 • No: 4

Senate vote • 5/25/2025

Record vote

Yes: 27 • No: 4

Senate vote • 5/25/2025

Record vote

Yes: 27 • No: 4

Senate vote • 5/25/2025

Record vote

Yes: 27 • No: 4

House vote • 5/10/2025

Record vote

Yes: 0 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 5 • No: 0 • Other: 1

House vote • Unknown

Committee vote: Land & Resource Management

Yes: 7 • No: 0

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

    5/28/2025House
  4. Signed in the Senate

    5/27/2025Senate
  5. Signed in the House

    5/27/2025House
  6. Reported enrolled

    5/26/2025House
  7. Senate passage reported

    5/26/2025House
  8. Record vote

    5/25/2025Senate
  9. Passed

    5/25/2025Senate
  10. Read 3rd time

    5/25/2025Senate
  11. Record vote

    5/25/2025Senate
  12. Three day rule suspended

    5/25/2025Senate
  13. Record vote

    5/25/2025Senate
  14. Read 2nd time & passed to 3rd reading

    5/25/2025Senate
  15. Record vote

    5/25/2025Senate
  16. Rules suspended-Regular order of business

    5/25/2025Senate
  17. Placed on intent calendar

    5/25/2025Senate
  18. Committee report printed and distributed

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

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

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

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

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

    5/22/2025Senate
  24. Posting rule suspended

    5/22/2025Senate
  25. Referred to Local Government

    5/21/2025Senate

Bill Text

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