Texas House bill by Rep. Schofield allows Harris County MUD 405 to exclude certain undeveloped properties

Passed bill authored by State Rep. Mike Schofield seeks to allow Harris County Municipal Utility District No. 405 to exclude certain undeveloped properties through agreements with owners while maintaining debt obligations and tax responsibilities during the exclusion period, according to the Texas Legislature website.

In the House, 50 Democrats and 81 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the Senate, 11 Democrats and 17 Republicans voted in favor, while three Republicans voted against it.

Mike Schofield introduced the bill in the Texas House on Thursday, May 1, during the 89th regular legislative session.

Schofield graduated from Rutgers University with a BS and again from Louisiana State University with a JD.

Schofield, a Republican, was elected to the Texas State House in 2021 to represent the state’s 132nd House district, replacing previous state representative Gina Calanni.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the authority of the Harris County Municipal Utility District No. 405 to exclude territory; validating and confirming all previous acts of the district’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill allows the Harris County Municipal Utility District No. 405 to exclude certain undeveloped properties from the district through a written agreement with property owners. The district may exclude properties upon fulfillment of contract terms deemed beneficial by its board of directors. Excluded properties remain liable for their share of the district’s existing debt, secured by statutory liens, until fully paid. Debt service taxes will continue to be collected on excluded properties at the same rate as other district properties to meet this obligation, and bondholder rights are preserved. The district may issue additional voter-approved debt without conducting a new election for properties excluded. Upon full payment of their debt share, excluded properties are released from district tax obligations and service entitlements. The Act takes effect immediately if it receives the necessary votes; otherwise, it becomes effective Sept. 1, 2025.

The bill received its final legislative approval on Tuesday, May 27, and was filed without the Governor’s signature on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.