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Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4894

Regular Session

Relating to the boundaries of, and validating certain acts and proceedings of, the Creedmoor Municipal Utility District.

Government Affairs & Regulatory Compliance Analysis

HB4894: Government Affairs Overview

Effective June 20, 2025, HB4894 codifies expanded boundaries for the Creedmoor Municipal Utility District (MUD) in Travis County and validates all prior District acts. Real estate developers, lenders, and title companies dealing with land near Old Lockhart Road, SH 45, or FM 1327 must immediately update property disclosures and tax records, as these tracts are now subject to MUD taxation and statutory notice requirements.

Rep. Maria Flores·House Bill·Regular Session

Low
Low Cost
Effective:2025-06-20
Enforcing Agencies

Creedmoor Municipal Utility District • Texas Commission on Environmental Quality (TCEQ)

Business Impact

Who HB4894 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-06-20). Review during normal business planning.

💧

Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Vendor/Construction Contracts: No amendment needed. Section 4 of the Act validates prior contracts, curing any potential defects regarding the District's authority at the time of execution.
  • 2Sales Staff: Train sales agents operating in Southeast Travis County to verify MUD status before accepting earnest money.
  • 3Title Officers: Ensure staff are not relying on pre-June 2025 maps. They must reference the metes and bounds in Section 2 of HB4894 for title commitments.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB4894
Relating to the boundaries of, and validating certain acts and proceedings of, the Creedmoor Municipal Utility District.
Low Urgency
Heavily Contested
House Vote103 - 45
YEA
NAY
70% in favor148 voting
Senate Vote28 - 3
YEA
90% in favor31 voting
48
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
Creedmoor Municipal Utility Dist...TCEQ
Primary Author: Rep. Maria Flores
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate effect).
  • Compliance Deadline: Immediate. Any Purchase and Sale Agreement (PSA) executed for affected tracts after June 20, 2025, must include the statutory MUD notice.
  • Agency Rulemaking: None required. The boundaries are set by statute. However, the District will file updated maps with the TCEQ and Travis County Appraisal District for the upcoming tax cycle.

Immediate Action Plan

  • 1. Audit Inventory: Immediately cross-reference land holdings against the metes and bounds in Section 2 of HB4894.
  • 2. Update Templates: Revise all PSA templates for Travis County assets to include the Creedmoor MUD Notice to Purchaser.
  • 3. Adjust Escrows: Notify loan servicing to increase tax escrows for affected tracts to prevent end-of-year shortages.
  • 4. Secure Title: Ensure title commitments issued after June 20, 2025, explicitly list the Creedmoor MUD taxing authority to avoid coverage disputes.

Operational Changes Required

Contracts

  • Purchase and Sale Agreements (PSAs): You must insert the "Notice to Purchaser" required by Texas Water Code § 49.452 into all sales contracts for land within the new boundaries. Failure to do so grants the buyer the right to terminate the contract up to closing or sue for damages post-closing.
  • Vendor/Construction Contracts: No amendment needed. Section 4 of the Act validates prior contracts, curing any potential defects regarding the District's authority at the time of execution.

Hiring/Training

  • Sales Staff: Train sales agents operating in Southeast Travis County to verify MUD status before accepting earnest money.
  • Title Officers: Ensure staff are not relying on pre-June 2025 maps. They must reference the metes and bounds in Section 2 of HB4894 for title commitments.

Reporting & Record-Keeping

  • Geospatial Data: GIS teams must overlay the legislative metes and bounds (approx. 358 acres) onto current asset maps to identify affected inventory.
  • Title Commitments: Must list Creedmoor MUD as a taxing authority in Schedule B exceptions.

Fees & Costs

  • Tax Liability: Accounting must adjust escrow accruals for affected properties to include Creedmoor MUD ad valorem taxes.
  • No New Filing Fees: There are no state filing fees associated with this change, but holding costs for undeveloped land will increase due to the new tax layer.

Strategic Ambiguities & Considerations

  • "Mistake" Interpretation: Section 1(b) states that mistakes in the field notes do not invalidate the District. This creates a potential gap between the legislative text and ground reality. If a survey discrepancy arises, the District’s existence is legally secure, but specific property lines may require boundary agreements or correction deeds. Do not assume the legislative text is geometrically perfect; verify it on the ground.
  • Bonding Capacity: The Act validates the right to issue bonds but does not specify the remaining authorized amount. Developers seeking reimbursement must request a "District Information Form" directly from the MUD to verify available bonding capacity.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 13, 2025
Passed House
May 7, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCreedmoor Municipal Utility DistrictSpecial Districts & AuthoritiesSpecial Districts & Authorities--municipal Utility DistrictsSpecial Districts & Authorities--water & Utility
03

House Authors

Rep. Maria FloresDemocrat · Primary Author

Senate Sponsor

Sen. Judith ZaffiriniDemocrat · Primary Sponsor

Bill Text(with markup)

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Maria Flores

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Related by Topic

View more Creedmoor Municipal Utility District legislation
Quick Reference

Frequently Asked Questions

Common questions about HB4894

Q

What does Texas HB4894 do?

Effective June 20, 2025, HB4894 codifies expanded boundaries for the Creedmoor Municipal Utility District (MUD) in Travis County and validates all prior District acts. Real estate developers, lenders, and title companies dealing with land near Old Lockhart Road, SH 45, or FM 1327 must immediately update property disclosures and tax records, as these tracts are now subject to MUD taxation and statutory notice requirements.

Q

Who authored HB4894?

HB4894 was authored by Texas Representative Maria Flores during the Regular Session.

Q

When was HB4894 signed into law?

HB4894 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4894?

HB4894 is enforced by Creedmoor Municipal Utility District and Texas Commission on Environmental Quality (TCEQ).

Q

How significant are the changes in HB4894?

The regulatory priority for HB4894 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB4894?

The cost impact of HB4894 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB4894 address?

HB4894 addresses topics including creedmoor municipal utility district, special districts & authorities, special districts & authorities--municipal utility districts and special districts & authorities--water & utility.

Q

What are the key dates for HB4894?

Key dates for HB4894: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

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JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026