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Signed Into Law
Signed May 27, 2025Effective 2025-09-01
SB250

Regular Session

Relating to municipal annexation of an area adjacent to contiguous or connecting railroad rights-of-way.

Government Affairs & Regulatory Compliance Analysis

SB250: Government Affairs Overview

SB250 removes railroad rights-of-way (ROW) as legal barriers to municipal annexation, effective September 1, 2025. This legislation allows property owners separated from city limits by rail lines to voluntarily petition for annexation, unlocking access to municipal utilities and zoning for previously "landlocked" industrial and residential parcels.

Sen. Peter Flores·Senate Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

Municipalities (City Councils and Planning Departments)

Business Impact

Who SB250 Affects

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

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Estimated Cost Impact

lowMinimal cost impact anticipated.

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SB250
Low
Relating to municipal annexation of an area adjacent to contiguous or connecting railroad rights-of-way.
Low Compliance Urgency
Requires routine attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Municipalities
Primary Author: Sen. Peter Flores
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: Voluntary utilization begins immediately upon the effective date. No retroactive action is required for existing properties unless annexation is desired.
  • Agency Rulemaking: None. This is a statutory amendment to the Local Government Code. Implementation relies on individual Municipal Ordinances and City Council votes, not state agency rulemaking.

Immediate Action Plan

  • Audit Land Holdings (Q2 2025): Identify all owned or optioned parcels currently separated from a municipality by a railroad track.
  • Update Due Diligence (Immediate): Instruct legal and acquisition teams to treat rail-adjacent land as potentially city-contiguous.
  • Draft Consent Templates (August 2025): Prepare irrevocable consent-to-annex forms that reference SB250.
  • Engage Surveyors (August 2025): Commission surveys for target properties that specifically map the geometry of the rail ROW relative to city limits.

Operational Changes Required

Contracts

  • Development Agreements: Draft new Chapter 212 or Chapter 43 agreements that specifically cite Section 43.1057 as the jurisdictional authority. This prevents legal challenges regarding lack of physical contiguity.
  • Utility Agreements: Review existing contracts with Municipal Utility Districts (MUDs) or Water Control and Improvement Districts (WCIDs). Voluntary annexation often triggers termination clauses or infrastructure buyout provisions in these contracts.

Hiring/Training

  • Land Acquisition Teams: Update site selection criteria immediately. Parcels previously rejected due to lack of municipal connectivity (separated by rail) must be re-evaluated as viable acquisition targets.
  • Surveyors: Direct surveying teams to specifically delineate "railroad property" boundaries. They must certify that the ROW is "contiguous and runs parallel" to the municipal boundary to satisfy the statutory requirement.

Reporting & Record-Keeping

  • Affidavits of Consent: You must secure and retain notarized affidavits from property owners agreeing to the annexation. Subsection (a)(2) makes this a condition precedent; without written consent, the municipality lacks jurisdiction.
  • Annexation Petitions: Petitions must bundle the "additional area" (target land) with the "initial area" (rail-adjacent land) in a single filing.

Fees & Costs

  • Tax Liability: Finance departments must adjust pro formas to reflect municipal ad valorem tax rates effective upon the date of annexation.
  • Permitting Fees: Budget for typically higher municipal building permit fees and impact fees compared to county equivalents.

Strategic Ambiguities & Considerations

  • Definition of "Parallel": The statute requires the rail ROW to be "contiguous and run parallel" to the city boundary but does not define the geometric tolerance. A strict municipal interpretation could reject petitions where the rail line diverges slightly from the city limit.
  • "Other Railroad Property": The text applies to a "spur, or other railroad property." It is unclear if abandoned lines, maintenance yards, or leased rail land qualify. Until case law settles this, assume this applies only to active ROWs.
  • Selective Annexation ("Cherry-Picking"): The bill waives Section 43.054 width requirements. This allows municipalities to execute "strip" annexations to reach high-value commercial assets while bypassing residential areas, provided the commercial owner consents.

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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
Nov 12, 2024
Passed Senate
May 7, 2025
Passed House
May 14, 2025
Signed
May 27, 2025
Effective
Sep 1, 2025
TopicsCity GovernmentCity Government--annexationTransportationTransportation--railroads
03

Senate Authors

Sen. Peter FloresRepublican · Primary Author

House Sponsor

Rep. Hillary HicklandRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Peter Flores

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB250

Q

What does Texas SB250 do?

SB250 removes railroad rights-of-way (ROW) as legal barriers to municipal annexation, effective September 1, 2025. This legislation allows property owners separated from city limits by rail lines to voluntarily petition for annexation, unlocking access to municipal utilities and zoning for previously "landlocked" industrial and residential parcels.

Q

Who authored SB250?

SB250 was authored by Texas Senator Peter Flores during the Regular Session.

Q

When was SB250 signed into law?

SB250 was signed into law by Governor Greg Abbott on May 27, 2025.

Q

Which agencies enforce SB250?

SB250 is enforced by Municipalities (City Councils and Planning Departments).

Q

How significant are the changes in SB250?

The regulatory priority for SB250 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB250?

The cost impact of SB250 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB250 address?

SB250 addresses topics including city government, city government--annexation, transportation and transportation--railroads.

Q

What are the key dates for SB250?

Key dates for SB250: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB250?

SB250 primarily affects transportation and logistics companies. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

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