Relating to the projects undertaken by a public improvement district, municipal management district, water control and improvement district, fresh water supply district, or municipal utility district.
HB 4370 expands the types of projects public improvement districts, municipal management districts, water control districts, fresh water supply districts, and municipal utility districts can fund. It adds specific provisions allowing districts to finance affordable housing development (Section 372.003(b)(15)), geothermal water facility maintenance (Section 372.003(b-2)), and special services like public safety or business recruitment. The bill also clarifies how costs for improvements can be paid, including through combinations of methods for projects benefiting municipalities or approved entities. This policy change directly affects these specialized districts by broadening their authorized project scope under Texas Local Government Code.
Bill status
signed
all 5 stages cleared
Introduction
Apr 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
Jun 2025
Introduced Apr 1, 2025
Signed Jun 20, 2025
Maddy AI version diff · 2 comparisons
What changed between versions
Engrossed
→
Enrolled
·
4 edits
·
Jun 20, 2025
MODERATE
This bill was finalized in its enrolled version with minor formatting cleanup and one substantive addition. The main change is the addition of a new subsection (b-2) in Section 1, which allows districts to use funds for the operation and maintenance of geothermal water conveyance facilities. The bill also adds Chapter 365 and 441 of the Transportation Code to Section 4, expanding the types of districts that can acquire real property for improvements. Several sections were reformatted for clarity, and the effective date was set to September 1, 2025.
Scope change
The bill's scope was slightly expanded by adding Transportation Code chapters to the list of eligible entities that can acquire real property for district improvements, and by explicitly allowing operation and maintenance funding for geothermal water systems.
FISCAL
Added new subsection (b-2) allowing districts to use project funds for operation and maintenance of geothermal water conveyance facilities
ELIGIBILITY
Added Chapter 365 and 441 of the Transportation Code to the list of laws authorizing entities that can acquire real property for district improvements
TECHNICAL
Reformatted text throughout the bill for consistency and clarity, including fixing spacing and line breaks
TIMELINE
Established September 1, 2025 as the effective date for the act
Floor votes · House May 14, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
48
Key actions
16
Committee
11
Jun 20, 2025
Signed into law
Signed by the Governor
executive
May 23, 2025
Upper · Passed
Signed in the Senate
upper
May 23, 2025
Lower · Passed
Signed in the House
lower
May 21, 2025
Lower · Passed
Senate passage reported
lower
May 21, 2025
Upper · Passed
Passed
upper
May 20, 2025
Upper · Passed
Committee report printed and distributed
upper
May 20, 2025
Upper · Passed
Reported favorably w/o amendments
upper
May 19, 2025
Upper · Passed
Vote taken in committee
upper
May 19, 2025
Upper · Passed
Testimony taken in committee
upper
May 15, 2025
Committee
Referred to Local Government
upper
May 15, 2025
Introduced
Read first time
upper
May 14, 2025
Introduced
Received from the House
upper
May 14, 2025
Lower · Passed
Passed
lower
May 13, 2025
Lower · Passed
Passed to engrossment
lower
May 7, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 6, 2025
Lower · Passed
Committee report distributed
lower
Apr 28, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 15, 2025
Lower · Passed
Left pending in committee
lower
Apr 15, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Apr 1, 2025
Committee
Referred to Intergovernmental Affairs
lower
Apr 1, 2025
Introduced
Read first time
lower
6 primary · 3 co-sponsors
Sponsors
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