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HB 5695

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.

89th Legislature (2025) Introduced by Stan Gerdes and 1 co-sponsor

Texas creates Sayers Ranch Municipal Utility District with authority to levy taxes, issue bonds, and use eminent domain to build water infrastructure on September 1, 2025.

Effective on 9/1/25
#environmentalquality #texascommissionon(v0334) #sayersranchmunicipalutilitydistrict(da48s) #specialdistricts&authorities--municipalutilitydistricts(i0009) #specialdistricts&authorities--water&utility(i0755)
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Bill Summary · HB 5695

Legislative bill overview

HB 5695 establishes the Sayers Ranch Municipal Utility District in Texas, a new special-purpose governmental entity authorized to provide water, wastewater, and related utility services to a defined area. The district receives powers to acquire property through eminent domain (with limitations), issue bonds for infrastructure financing, and levy assessments, fees, and taxes on property within its boundaries.

Why is this important

Municipal utility districts are common mechanisms in Texas for funding and managing water infrastructure in developing areas without relying on general municipal budgets. This creates a dedicated revenue stream for utility expansion but also imposes new financial obligations on property owners in the district through assessments and taxes that persist independently of other municipal governance.

Potential points of contention

  • Property owner costs: Residents and landowners in the district automatically become subject to new assessments, fees, and taxes with limited opt-out mechanisms, potentially increasing property expenses significantly
  • Eminent domain scope: While "limited," the power to seize private property for utility infrastructure purposes can conflict with property rights concerns, even with legal restrictions in place
  • Governance accountability: Special utility districts often operate with less direct voter oversight than traditional municipalities, raising questions about transparency and responsiveness to constituent concerns

Compiled from official sources — confirm details with the bill’s official record.

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