H.B. No. 5650 establishes the Travis County Municipal Utility District No. 40, granting it limited powers such as the ability to exercise eminent domain, issue bonds, and impose assessments, fees, and taxes. The bill introduces Chapter 8014A to the Special District Local Laws Code, which includes governance provisions like the election of a board of directors and the requirement for municipal consent prior to elections. The district is created to facilitate the construction and maintenance of roads and related improvements, with powers and duties that align with existing laws for municipal utility districts in Texas.

The bill specifies that the district can issue bonds without an election for certain revenue sources but mandates elections for ad valorem taxes and specific bond issuances. It defines the initial territory of the district, detailing specific tracts of land in Travis County, including a 20.79-acre tract and smaller tracts. Importantly, the bill includes a new section, 8014A.0306, which explicitly states that the district may not exercise the power of eminent domain, clarifying limitations on property acquisition. The bill will take effect immediately with a two-thirds vote from both houses or on September 1, 2025, if not passed.

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