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HB 5650

Relating to the creation of the Travis County Municipal Utility District No. 40; 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 Judith Zaffirini

Creates Travis County MUD No. 40 with authority to levy taxes, issue bonds, and exercise eminent domain to develop water and wastewater infrastructure in the district.

Effective immediately
#specialdistricts&authorities--municipalutilitydistricts(i0009) #specialdistricts&authorities--water&utility(i0755) #traviscountymunicipalutilitydistrictno.40(dr2ee)
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Bill Summary · HB 5650

Legislative bill overview

HB 5650 establishes Travis County Municipal Utility District No. 40, a new special-purpose governmental entity authorized to provide water, wastewater, and drainage services to a defined area. The bill grants this district powers including limited eminent domain authority, the ability to issue bonds for infrastructure projects, and authority to impose assessments, fees, and taxes on property within its jurisdiction.

Why is this important

The creation of a new MUD enables infrastructure development and utility services in an area of Travis County that may lack adequate water and wastewater systems. However, it also creates a new taxing entity that can impose financial obligations on property owners within the district boundaries, affecting property values and operating costs for affected landowners.

Potential points of contention

  • Eminent domain authority: The district's power to seize private property (with compensation) for utility projects may concern property owners concerned about takings for public infrastructure
  • Tax burden on residents: New assessment, fee, and tax authority creates additional financial obligations for properties within the district, potentially increasing the cost of property ownership
  • Governance and accountability: As an appointed or elected special district board, questions may arise about transparency, public participation in decision-making, and how effectively residents can influence the district's priorities and spending

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

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