Transcript Highlights:

• The state of Texas authorized the creation of municipal utility districts, known as MUDs, ...streamline
• In Harris County alone, there are well over 500 municipal utility districts, each with its own taxing
• In fact, Municipal Utility... ...districts are one of the only municipal districts that have never required
• The state also requires that municipal management district directors either own property or have some
• utility districts more in line with the requirements we give to other municipal subdivisions that can

Bills: HB602, HB1322, HB1930, HB2225, HB2304, HB2494, HB3275, HB3810, HB3919

Keywords: affordable housing, land use, zoning, urban planning, community development, housing crisis, mixed-use development, sustainability, municipal utility district, board of directors, qualifications, land ownership, Texas, taxation, residency, municipal approval, subdivision plans, local governance, plats, local government

Transcript Highlights:

• Dallas fully provides municipal...
• Utility District, which was created... by the 86th legislature in 2019 but never fully began operations
• The district no longer has a function or a need, and all parties have agreed. that the district is no
• Parks got baked into municipal codes and are rarely updated.
• You have to live in the district in which you are mud.

Bills: HB602, HB1322, HB1930, HB2225, HB2304, HB2494, HB3275, HB3810, HB3919

Keywords: affordable housing, land use, zoning, urban planning, community development, housing crisis, mixed-use development, sustainability, municipal utility district, board of directors, qualifications, land ownership, Texas, taxation, residency, municipal approval, subdivision plans, local governance, plats, local government

Bills: SB 3038, SB 3045, SB 3065, SB 3069, SB 3071, HB 2025, HB 2149, HB 3370, HB 4205, HB 4506, HB 5424, HB 5652, HB 24, HB 3687

Keywords: Montgomery County, management district, special district, bond issuance, assessments, taxation, public welfare, economic development, nonconforming uses, zoning regulations, land use, property rights, municipal authority, municipal utility district, eminent domain, bonds, taxes, public infrastructure, water supply, zoning

Transcript Highlights:

• Cemeteries require municipal services like street maintenance, utilities, and public safety, but due
• HB 5661 proposes the creation of Fort Bend County Municipal Utility District No. 286.
• HB 5661 proposes the creation of Fort Bend County Municipal Utility District No. 286.
• This is a template bill and uses standard template language for creating a municipal utility district
• This creates a municipal utility district to be known as Fort Bend County Municipal District No. 263

Bills: HB447, HB897, HB993, HB2673, HB3671, HB3680, HB3897, HB4506, HB4753, HB4812, HB4894, HB5148, HB5437, HB5650, HB5652, HB5654, HB5656, HB5661, HB5665

Keywords: traffic impact studies, municipal utility district, bonds, road projects, eminent domain, HB 897, Texas land sale, state property, Austin real estate, Travis County, General Land Office, Texas State Library and Archives Commission, HHSC, Health and Human Services Commission, state records facility, archives building, library funding, capital improvements, lease of state land, public land disposition

Summary: The committee heard testimony and took action on several land use, housing, municipal utility district, and cemetery-related bills. House Bill 447, dealing with transportation impact analysis requirements tied to MUD bond issuance, drew opposition from a witness who argued it would duplicate work, strain agency resources, and delay development; after the sponsor’s closing remarks, the committee substitute was withdrawn and the bill was left pending. Senate Bill 1202, on third-party review of home backup power installations, was substituted and reported favorably to the full House by a unanimous roll call. House Bill 2494, on disannexation for failure to provide municipal services, and House Bill 1835, removing barriers to HUD-code manufactured homes, were also substituted and reported favorably; HB 1835 passed on a 5-1 vote. Senate Bill 15, limiting lot size and density requirements in certain large municipalities, was substituted and reported favorably unanimously. The committee also heard House Bill 897, which would authorize the sale or long-term lease of two state-owned Austin properties used by the Texas State Library and Archives Commission and HHSC. The sponsor said the properties are in poor condition and that proceeds would benefit the state; after questions, the committee substitute was withdrawn and the bill was left pending. Several template MUD bills were then laid out, including HB 5652, HB 5654, HB 5661, and HB 5656, each creating or authorizing municipal utility districts in Montgomery or Fort Bend counties for water, wastewater, drainage, road, and recreational improvements. These bills drew limited testimony in support and were left pending without objection. A major portion of the meeting focused on House Bill 2673, which would repeal last session’s change allowing new cemeteries within certain distances of municipalities and restore the prior rule limiting cemetery placement near growing urban areas. The sponsor and supporters argued the 2023 change created unintended consequences, removed valuable taxable land from future use, and complicated city planning; opponents, including a funeral service industry representative, argued the current law gives communities local control and helps address cemetery land shortages. After extensive testimony, the bill was left pending. The committee also heard HB 4753, a bill allowing a property owner to use a municipal record showing a certificate of occupancy was issued when the original document is lost; it was left pending. Finally, HB 3680, a Cameron County-specific bill modifying subdivision/model rule procedures to reduce replatting burdens while preserving colonia protections, and HB 4812, clarifying that condominiums follow Chapter 82 of the Property Code rather than full subdivision platting, both received supportive testimony and were left pending.

Transcript Highlights:

• Cemeteries require municipal services like street maintenance, utilities, public safety, but due to their
• Lalani and committee members, HB 5661 proposes a creation of Fort Bend County Municipal Utility District
• This is a template bill and uses standard template language for creating a municipal utility district
• This creates the creation of a municipal utility district to be known as Fort Bend County Municipal District
• The bill conforms in all respects to the agreed template for the creation of a municipal district adopted

Bills: HB447, HB897, HB993, HB2673, HB3671, HB3680, HB3897, HB4506, HB4753, HB4812, HB4894, HB5148, HB5437, HB5650, HB5652, HB5654, HB5656, HB5661, HB5665

Keywords: traffic impact studies, municipal utility district, bonds, road projects, eminent domain, HB 897, Texas land sale, state property, Austin real estate, Travis County, General Land Office, Texas State Library and Archives Commission, HHSC, Health and Human Services Commission, state records facility, archives building, library funding, capital improvements, lease of state land, public land disposition

Summary: The committee heard testimony on a series of land use, housing, and local government bills. House Bill 447, relating to TIA requirements for certain MUD bond issuances, drew opposition from a witness who argued it would duplicate work already done, strain agency resources, and delay development; after the author’s closing, the committee substitute was withdrawn and the bill was left pending. The committee then voted out Senate Bill 1202 (third-party review of home backup power installations), House Bill 2494 (disannexation for failure to provide services), House Bill 1835 (removing barriers to HUD co-manufactured homes), and Senate Bill 15 (lot size and density limits in certain municipalities), with House Bill 1835 receiving one no vote and the others passing unanimously. House Bill 897, authorizing sale or lease of two state-owned Austin properties, was laid out and left pending after brief questions and no public testimony. The committee also heard and left pending several MUD creation bills for Montgomery and Fort Bend counties, including House Bills 5652, 5654, 5661, and 5656, each presented as template district bills with local support and no opposition recorded at the table. A major portion of the meeting focused on House Bill 2673, which would restore prior restrictions on new cemeteries near growing urban areas by repealing changes made last session. Representative Lujan and supporters argued the current law created unintended consequences, including loss of developable land, tax-exempt property in urban cores, and conflicts with infrastructure planning; they said cities already have authority to establish their own cemeteries if needed. Opponents, including a funeral services industry representative, argued the 2023 change was intended to let communities decide and that the bill would take local decision-making backward. After extensive testimony from both sides, the bill was left pending. The committee also heard House Bill 3680, which would create a Cameron County-specific process allowing local discretion under the model subdivision rules. Supporters said the bill would preserve colonia protections while reducing costly platting and replatting burdens on families trying to sell or pass down land; county officials and realtors testified in favor. The bill was left pending after closing. House Bill 4812, a clarification to the Texas Uniform Condominium Act to prevent counties from imposing subdivision platting requirements on condominiums, received support from builders and a condominium attorney who said current county practices create duplicative hurdles and higher costs; it too was left pending. Finally, House Bill 5148, which would allow certain single-stair apartment buildings up to six stories, generated the most detailed policy debate. Supporters, including housing advocates and architects, said the bill would lower costs, improve unit design, and expand affordable, family-friendly housing while maintaining safety through sprinklers and other safeguards. Fire officials from Corpus Christi opposed the bill, warning that a single stairwell could hinder firefighting and occupant evacuation, especially if sprinklers fail or smoke spreads. The author said the bill was aimed at new construction only and was part of a broader effort to reduce outdated housing regulations; the committee substitute was withdrawn and the bill was left pending at adjournment.

Transcript Highlights:

• Cemeteries require municipal services like street maintenance, utilities, and public safety, but due
• House Bill 5661 proposes the creation of Fort Bend County Municipal Utility District No. 286.
• This is a template bill and uses standard template language for creating a municipal utility district
• The bill provides financing for water, sewer, ...a municipal utility district, the bill provides financing
• This creates the creation of a municipal utility district to be known as Fort Bend County Municipal Utility

Bills: HB447, HB897, HB993, HB2673, HB3671, HB3680, HB3897, HB4506, HB4753, HB4812, HB4894, HB5148, HB5437, HB5650, HB5652, HB5654, HB5656, HB5661, HB5665

Keywords: traffic impact studies, municipal utility district, bonds, road projects, eminent domain, HB 897, Texas land sale, state property, Austin real estate, Travis County, General Land Office, Texas State Library and Archives Commission, HHSC, Health and Human Services Commission, state records facility, archives building, library funding, capital improvements, lease of state land, public land disposition

Transcript Highlights:

• Utility District.
• House Bill 5665 is a bill to create Water County Municipal Utility District Number 70 in my house district
• It's the Municipal Utility District in Waller County.
• Utility District No. 1.
• One of the key functions of these Municipal Utility Districts...

Bills: HB447, HB897, HB993, HB2673, HB3671, HB3680, HB3897, HB4506, HB4753, HB4812, HB4894, HB5148, HB5437, HB5650, HB5652, HB5654, HB5656, HB5661, HB5665

Keywords: traffic impact studies, municipal utility district, bonds, road projects, eminent domain, HB 897, Texas land sale, state property, Austin real estate, Travis County, General Land Office, Texas State Library and Archives Commission, HHSC, Health and Human Services Commission, state records facility, archives building, library funding, capital improvements, lease of state land, public land disposition

Transcript Highlights:

• HB 5695 proposes to create the Sayers Ranch Municipal Utility District to be located in and incorporated
• Sayers Ranch Municipal Utility District is to be located in the incorporated part of Bastrop County between
• Members, this bill creates the Sayers Ranch Municipal Utility District.
• Members, this bill excludes attractive undeveloped land from Harris County Municipal Utility District
• by the Public Utility Commission.”

Bills: HB5489, HB5695, HB5699, SB291, SB292

Keywords: impact fee, moratorium, local government, Texas legislation, infrastructure funding, municipal utility district, eminent domain, bonds, assessments, infrastructure, Texas Commission on Environmental Quality, Harris County, Municipal Utility District, territory exclusion, debt service taxes, property taxation, condemnation, property acquisition, real property, appraisal reports

Transcript Highlights:

• As you know, members, special utility districts are created to provide utility services like water, wastewater
• HB 5671 allows the Johnson County Special Utility District to issue bonds.
• When a utility district the size of adjacent, they do all their engineering in-house, and so they can
• I'll just give a little bit of background on Johnson County Special Utility District.
• Current law allows municipally owned utility district customers who are outside city limits to appeal

Bills: HB3115, HB5671, HB5693, SB790, SB1055, SB1302, SB1504, SB1625, SB1663, SB2692

Keywords: Cow Creek Groundwater Conservation District, groundwater, water wells, domestic well, livestock well, exempt well, metering device, well meter, groundwater conservation district, Special District Local Laws Code, Water Code, Section 36.117, groundwater regulation, water rights, aquifer management, municipal utility, retail public utility, groundwater export, water supply contract, election

Summary: The Committee on Natural Resources heard testimony on a series of water, utility, and groundwater-related bills. Early items included HB 5693, which would let Drainage District 7 hold board elections in November of odd-numbered years when a countywide election is occurring, and HB 5671, which would update the Johnson County Special Utility District by clarifying board eligibility, allowing bond issuance, and removing redundant TCEQ approval language to reduce costs and delays. Both bills were left pending after brief testimony from bill sponsors and local witnesses. The committee also heard SB 1504, which would update the Gulf Coast Authority to allow video-conference participation in meetings, and SB 1302, aimed at closing a TCEQ permitting loophole that allowed dischargers with prior denials or suspensions to reapply through an automated process without meaningful review. SB 2692 drew substantial discussion: it would change the signature threshold for outside-city-limits customers appealing municipal utility rates to the PUC by customer class. Valero supported the bill as a way to avoid requiring large-volume users to gather signatures from unrelated residential customers, while the City of Corpus Christi opposed it, arguing that lowering the threshold to one customer could trigger expensive appeals costing $500,000 to $1 million. A PUC witness said such cases are increasing and that the agency would need additional staff under the fiscal note. SB 790, creating a simplified PUC complaint process for small water and wastewater billing disputes, and SB 1663, expanding TCEQ notice requirements for nearby residents when groundwater contamination is discovered, were also heard and left pending. Additional bills included HB 3115, clarifying that the Cow Creek Groundwater Conservation District cannot require meters on exempt domestic or livestock wells; SB 1055, raising the Southeast Texas Groundwater Conservation District’s production fee cap from 1 cent to 7 cents per 1,000 gallons; and SB 1625, requiring private water and wastewater utilities to report cybersecurity incidents to TCEQ and DIR. The committee then took up pending business and adopted a substitute for SB 7, which made several changes to water fund use, eminent domain coordination, and EDAP-related provisions, and voted 10-0 to report it favorably. The committee also adopted a substitute for HB 2347, a county water conservation program bill, and reported it favorably 9-1. HB 5675 and SB 2476 were each reported favorably 10-0. The meeting concluded with adjournment.

Bills: HB3115, HB5671, HB5693, SB790, SB1055, SB1302, SB1504, SB1625, SB1663, SB2692

Keywords: Cow Creek Groundwater Conservation District, groundwater, water wells, domestic well, livestock well, exempt well, metering device, well meter, groundwater conservation district, Special District Local Laws Code, Water Code, Section 36.117, groundwater regulation, water rights, aquifer management, municipal utility, retail public utility, groundwater export, water supply contract, election

Transcript Highlights:

• However, in some cities, municipally owned utilities adopt increased rates charged to tax-exempt entities
• House Bill 685 keeps a municipality from adopting an increased rate for water or sewer utility service
• Currently, the municipality may petition the Public Utility Commission to decertify a portion of a retail
• water utility certificate of convenience and necessity after the municipality has annexed the area.
• the territory are transferred to the municipality, and the rural water utility receives just compensation

Bills: HB630, HB685, HB1318, HB2692

Keywords: outboard motors, certificate of title, vessel regulation, Texas Parks and Wildlife Code, marine documentation, HB 685, municipal utility rates, water rates, sewer rates, local government code, rate discrimination, tax-exempt entities, sales tax exemption, ad valorem tax exemption, nonprofit organizations, charitable organizations, municipal water service, municipal sewer service, utility billing, public utilities

Summary: The Senate Committee on Water, Agriculture, and Rural Affairs met with no quorum at the start, but later reached quorum and took up several bills. House Bill 2692, codifying the San Antonio River Authority’s enabling legislation and making non-substantive modernization changes, received brief supportive testimony from the River Authority and was left pending before later being voted out favorably. House Bill 685, which would prevent municipalities from charging higher water or sewer rates to tax-exempt entities than comparable customers, also drew support and was reported favorably. House Bill 1318, clarifying compensation issues when a municipality decertifies part of a retail water utility’s service area, was heard without opposition and passed out of committee. House Bill 630, exempting certain older outboard motors from title requirements, likewise passed and was placed on the local and uncontested calendar. The committee spent the most time on Senate Bill 2497, relating to filtration systems for certain public drinking water systems. Senator Zaffirini described the bill as a response to ongoing secondary water quality complaints, while TCEQ testified that such contaminants are aesthetic rather than health-based and that the water remains safe to drink if primary standards are met. The Texas Rural Water Association opposed the bill as written, arguing filtration may not solve most water quality problems and could be costly for small systems, while a consumer witness from Floresville supported it and described repeated rate increases and brown water after a filtration system was removed. Members discussed narrowing the bill through a committee substitute and emphasized the need for flexibility and technical expertise; the committee substitute was adopted and the bill was reported favorably, with Senator Kolkhorst later asking to be recorded as voting no. The committee also heard Senate Bill 2850, which would create a pollinator task force to study habitat loss, public education, and best practices for protecting bees and other pollinators. Senator Menendez and invited witness Erica Thompson of Texas BeeWorks highlighted major colony losses and the economic importance of pollinators to Texas agriculture, and Environment Texas and the Texas Beekeepers Association supported the measure. Members discussed monarch butterflies, native grasses, milkweed, and conservation efforts, and the bill was reported favorably and sent to the local and uncontested calendar. After testimony, the committee also voted out several pending items, including House Bill 5560 with a committee substitute addressing water-loss penalties and infrastructure improvements, and then recessed subject to the call of the chair.

Transcript Highlights:

• Next, Fortner Walker County Hospital District.
• Walker County Hospital District effectively reorg bill. Any questions? All right, great.

Bills: HB 148, HB 334, HB 554, HB 762, HB 1520, HB 1593, HB 3526, HB 3810, HB 5092, SB 2215, HB 2607

Keywords: family leave, leave pool, county employee, sick leave, vacation leave, family care, pandemic, guardianship, HB 554, fireworks, Juneteenth, Juneteenth holiday, retail fireworks permit, Texas Occupations Code, Local Government Code, county commissioners court, drought conditions, Texas A&M Forest Service, fire safety, holiday sales

Transcript Highlights:

• However, in some cities, municipally owned utilities adopt increased rates charged to tax-exempt entities
• This occurred in what was once my district, but is now Senator Kocour's district in the City of Magnolia
• House Bill 685 prevents a municipality from increasing the rate for water or sewer utility service on
• Currently, the municipality may petition the Public Utility Commission to decertify a portion of a retail
• water utility certificate of convenience and... necessity document after the municipality has annexed

Bills: HB630, HB685, HB1318, HB2692

Keywords: outboard motors, certificate of title, vessel regulation, Texas Parks and Wildlife Code, marine documentation, HB 685, municipal utility rates, water rates, sewer rates, local government code, rate discrimination, tax-exempt entities, sales tax exemption, ad valorem tax exemption, nonprofit organizations, charitable organizations, municipal water service, municipal sewer service, utility billing, public utilities

Transcript Highlights:

• However, in some cities, municipally owned utilities adopt increased rates charged to tax exempt entities
• House Bill 685 would prohibit a municipality from adopting an increased rate for water or sewer utility
• Uh, I manage the municipally owned electric, water, and wastewater utilities, uh, in San Marcos.
• Will be placed on the utility.
• So the investor-owned utilities are, are, are, um, a private company versus a municipally owned utility

Bills: HB 29, HB 685, HB 1633, HB 1689, HB 1690, HB 1918, HB 2010, HB 2500, HB 2608, HB 2626

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• San Antonio Water System requires that these municipally owned utilities who exceed the water loss threshold
• If anything, we'd suggest that more municipalities that are a little bit lower or utilities that cover
• Members of the committee, as you know, water districts, including municipal utility districts. ... a
• Therefore, at any moment, they could exercise their authority under that municipal utility district without
• utility district.

Bills: HB29, HB685, HB1633, HB1689, HB1690, HB1918, HB2010, HB2500, HB2608, HB2626, HB29

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• However, in some cities, municipally-owned utilities adopt increased rates charged to tax-exempt entities
• I manage the municipally owned electric, water, and wastewater utilities in San Marcos.
• Rate cases are a vital part of utility regulation that allow a utility to seek.
• The distinction between investor-owned utilities and municipally owned or other water supply corporations
• are a part of that. private company versus a municipally owned utility, where it's envisioned for the

Bills: HB29, HB685, HB1633, HB1689, HB1690, HB1918, HB2010, HB2500, HB2608, HB2626, HB29

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• Members, this bill provides for the dissolution of the Rose City Municipal Utility District.
• utility districts, or MUDs, accessibility and...
• in the district. district, is that correct?
• District.
• Some are municipal utility districts, or MUDs; there are about 3,000 water districts, and they also vary

Bills: HB1835, HB2561, HB3630

Keywords: manufactured housing, HUD-code, zoning, local government regulations, installation permits, municipal utility district, board meetings, public access, meeting location, transparency, fire prevention, agriculture, local government, fire safety, regulations, 1184, house, all

Transcript Highlights:

• type draft into a legislative council draft and adds clarity to those. affected or aggrieved by a municipality
• providing a clear and unambiguous explanation. waiver of immunity for claims brought against the municipality
• as a criminal county attorney for a number of counties in the name of the state of Texas against municipal
• I don’t see a Municipal League or anybody that represents the city of San Antonio.
• clinic on undeveloped district land.

Bills: HB148, HB334, HB554, HB762, HB1520, HB1593, HB3526, HB3810, HB5092, SB2215, HB2607, HB148

Keywords: family leave, leave pool, county employee, sick leave, vacation leave, family care, pandemic, guardianship, HB 554, fireworks, Juneteenth, Juneteenth holiday, retail fireworks permit, Texas Occupations Code, Local Government Code, county commissioners court, drought conditions, Texas A&M Forest Service, fire safety, holiday sales

Transcript Highlights:

• Next is the Warner-Walker County Hospital District.
• All right, Walker County Hospital District, effectively reorganizational bill. Any questions?

Bills: HB148, HB148, HB334, HB554, HB762, HB1520, HB1593, HB3526, HB3810, HB5092, SB2215, HB2607

Keywords: HB 148, Texas Education Code, Texas Education Agency, TEA, artificial intelligence, AI, machine learning, automated scoring, constructed response, open-ended answers, student assessments, state testing, standardized tests, public schools, education policy, assessment instruments, school accountability, test scoring, 2026-2027 school year, family leave

Transcript Highlights:

• No, this is the electronic delivery of municipal zoning changes if the resident opts in.

Bills: SB3038, SB3045, SB3065, SB3069, SB3071, HB2025, HB2149, HB3370, HB4205, HB4506, HB5424, HB5652, HB24, HB3687

Keywords: Fort Bend County, Municipal Utility District, MUD, special district, Rosenberg, Texas Commission on Environmental Quality, TCEQ, ad valorem tax, bond issuance, assessments, fees, taxes, eminent domain, road district, storm drainage, infrastructure financing, development agreement, municipal consent, temporary directors, public utility district

Summary: The Senate Committee on Local Government met with a quorum and took up a series of pending bills, mostly local-government measures. Early action included final committee approval of Senate Bill 1633 and S.J.R. 60, followed by Senate Bill 3038 and Senate Bill 3045, both reported favorably and placed on the local and uncontested calendar. The committee also considered House Bill 24, adopted a committee substitute, and reported the substitute version favorably; House Bill 2025 was likewise reported favorably and sent to the local and uncontested calendar. Members then handled several companion and local bills, including House Bill 2713 as the companion to Senate Bill 1331, which was reported favorably and placed on the local and uncontested calendar. House Bill 3348, House Bill 3370, House Bill 3505, and House Bill 4506 were each reported favorably, with no objections to local-and-uncontested placement. House Bill 5424 passed on a 6-1 vote, and House Bill 5652 passed with one present-not-voting, both also sent to the local and uncontested calendar. The committee also adopted substitutes and reported House Bill 3687 and House Bill 4205, though both were later reconsidered because the wrong script had been read. After reconsideration, House Bill 3687 and House Bill 4205 were each re-voted and reported favorably to the full Senate, with both placed on the local and uncontested calendar. Senate Bill 3071 was also reported out on a 5-2 vote after adoption of a committee substitute. The meeting ended with no further business and the committee standing at recess subject to the call of the chair.