TX HB4978

Requires municipalities to provide explicit written consent by resolution or ordinance for the creation of any municipal utility district (MUD) within their corporate limits or extraterritorial jurisdiction, including districts created by local law

Eliminates the provision allowing automatic municipal consent after 120 days of inaction on a petition for MUD creation, and removes the option for landowners to petition the Texas Commission on Environmental Quality (TCEQ) to override municipal refusal

Mandates that when a municipality approves a MUD in its extraterritorial jurisdiction, the district, municipality, and county must enter into a memorandum of understanding detailing how water and road services will be provided

Removes the distinction between "city service districts" and "noncity service districts" and repeals related provisions governing conditions municipalities could place on non-city service district creation

Applies only to MUD creation petitions filed on or after September 1, 2025, with pending petitions governed by prior law