Relating to the creation of municipal utility districts in the extraterritorial jurisdiction of a municipality.

HB 4978 would have amended Texas law to exclude municipal utility districts from specific provisions requiring municipal consent for new utility districts in areas outside city limits (extraterritorial jurisdiction). The bill would have removed requirements for cities to respond to petitions within 120 days, eliminated the need for city consent to include land in such districts, and excluded these districts from appeals to the Texas Commission on Environmental Quality. This change would have directly affected cities, developers, and landowners seeking to establish utility services in unincorporated areas near cities. The bill was introduced in 2025 but withdrawn from consideration on May 1, 2025, and did not become law.