Relating to the boundaries of, and validating certain acts and proceedings of, the Creedmoor Municipal Utility District.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Creedmoor Municipal Utility District • Texas Commission on Environmental Quality (TCEQ)
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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.
During the 87th Regular Legislative Session, the Legislature enacted H.B. 4646, which created the Creedmoor Municipal Utility District (MUD) in Travis County that was initially approximately 212 acres. The bill author has informed the committee that there is a project within the Creedmoor Municipal Utility District called Willow Springs that is currently proposed to be primarily residential but with approximately 10 acres of commercial that will be near the highway. The bill author has also informed the committee that since the district was created, it has annexed five tracts of land, which totals approximately 145 acres. H.B. 4894 seeks to redefine the boundaries of the Creedmoor Municipal Utility District to reflect the annexation.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 4894 amends the Special District Local Laws Code and Chapter 762, Acts of the 87th Legislature, Regular Session, 2021, to change the boundaries of the Creedmoor Municipal Utility District.
H.B. 4894 provides for the validation and confirmation of certain district actions, elections, and proceedings taken before the bill's effective date. The bill establishes that this provision does not apply to any matter that on the bill's effective date is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment or has been held invalid by a final court judgment.
H.B. 4894 establishes that all applicable requirements relating to the following have been fulfilled and accomplished with respect to the bill:
·the legal notice of intention to introduce;
·governor action;
·Texas Commission on Environmental Quality recommendations; and
·the state constitution and laws and legislative rules and procedures.
H.B. 4894 repeals Section 2, Chapter 762, Acts of the 87th Legislature, Regular Session, 2021.
EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
Honorable Gary Gates, Chair, House Committee on Land & Resource Management
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4894 by Flores (Relating to the boundaries of, and validating certain acts and proceedings of, the Creedmoor Municipal Utility District.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
The fiscal implications to the district cannot be determined due to the net effect of altering the district boundaries being unknown. No fiscal implication to other units of local government is anticipated.
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Related Legislation
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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. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect).
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 urgent is compliance with HB4894?
The compliance urgency for HB4894 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
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.
Legislative data provided by LegiScanLast updated: November 25, 2025
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