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TexasHB 569589th Legislature Regular SessionHouseWALLET

Relating to the creation of the Sayers Ranch Municipal Utility District; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Sponsored By: Stan Gerdes, Charles Schwertner (Republican)

Became Law

SAYERS RANCH MUNICIPAL UTILITY DISTRICTSpecial 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: 2 benefits, 1 costs, 2 mixed.

District borrowing brings taxes and limits

The district can borrow for authorized projects using property taxes, impact fees, revenue, contract payments, grants, or other district money. Debt backed by non-property-tax revenue or qualifying contract payments needs no election; property taxes and property-tax-backed bonds require voter approval. Property-tax-backed road bonds require approval from two-thirds of voters voting. Total property-tax-backed road debt cannot exceed 25% of district real property’s assessed value; this does not cap individual tax bills. For property-tax-backed bonds, the board must provide an annual property tax without a rate or amount limit until fully repaid.

District property-taking power depends on votes

The law bars district use of eminent domain unless it received two-thirds support from all elected members in each legislative house. Eminent domain is the power to take private property for public use. Without that vote, the law took effect September 1, 2025; with it, the law took effect immediately. The supplied provisions do not report the vote result or establish that the ban applies.

Sayers Ranch gains road-building authority

The district can design, acquire, build, finance, improve, operate, and maintain paved or graveled roads and related drainage. It can transfer these improvements to Texas, a county, or a city for operation and upkeep. Projects must meet applicable construction standards and city rules within city limits or the city’s planning area outside them. County rules apply outside those areas. The Texas Transportation Commission must approve plans when the state will operate and maintain the road.

District voters can authorize additional taxes

District voters can approve a property tax for operations and maintenance; the board cannot exceed the voter-approved rate. The district can also impose a separate tax for contract payments after a majority of voters voting approve the contract terms. The board can change that contract without another vote only when the approved contract allows it. The law sets no tax rate or individual bill amount.

New utility district for Sayers Ranch

The law creates the Sayers Ranch Municipal Utility District, covering 252.94 acres in Bastrop County, to provide utility services. Each city covering district land, including its area outside city limits, must consent before the district-confirmation and permanent-director election. The district must follow applicable city consent terms; its five elected directors serve staggered four-year terms. Temporary directors serve until permanent directors are elected or the law’s fourth anniversary, whichever comes first. If their terms expire first, owners holding most assessed real-property value can petition state environmental regulators for five named replacements. Districts created by dividing this district receive the same powers and duties.

Sponsors & Cosponsors

Sponsors

  • Stan Gerdes

    House

  • Charles Schwertner

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 14 • 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 • 5/16/2025

Record vote

Yes: 0 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • No: 0 • Other: 1

House vote • Unknown

Committee vote: Land & Resource Management

Yes: 8 • 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

    5/31/2025House

  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. Placed on local & uncontested calendar

    5/28/2025Senate

  17. Committee report printed and distributed

    5/23/2025Senate

  18. Recommended for local & uncontested calendar

    5/23/2025Senate

  19. Reported favorably w/o amendments

    5/23/2025Senate

  20. Vote taken in committee

    5/22/2025Senate

  21. Considered in public hearing

    5/22/2025Senate

  22. Scheduled for public hearing on . . .

    5/22/2025Senate

  23. Posting rule suspended

    5/22/2025Senate

  24. Referred to Local Government

    5/21/2025Senate

  25. Read first time

    5/21/2025Senate

Bill Text

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