For limited districts whose area voted to disannex.
The bill lets certain neighborhood districts keep working after their area leaves a city. It covers limited districts that were converted from a special district under a city partnership deal and whose area voted to disannex. Those districts can use every power the original special district had by law inside the disannexed area, even if the old city agreement said otherwise.
relating to the authority of a special district to exercise certain
powers and duties following municipal disannexation of certain
areas.
WHAT IT DOES
For limited districts whose area voted to disannex.
The bill lets certain neighborhood districts keep working after their area leaves a city. It covers limited districts that were converted from a special district under a city partnership deal and whose area voted to disannex. Those districts can use every power the original special district had by law inside the disannexed area, even if the old city agreement said otherwise.
CHARGES
[ ] NONE FOUND
TOTAL
No fiscal implication to the State is anticipated.
The bill gives converted limited districts back the full legal powers of the special district they used to be, which overrides any limits in the city agreement after disannexation.
HB 4373 was passed to engrossment by (Record 1698): 137 Yeas, 1 Nays, 1 Present, not voting. (The vote was reconsidered later today, and HB 4373 was postponed until 9 a.m. Saturday, May 10.)
Published stock of positions for this vote, except where marked derived.
Yea: 137 (published)
Nay: 1 (published)
Present, not voting: 1 (published)
Absent: 8 (derived from named list)
Excused: 3 (derived from named list)
House journal. Source snapshot 2026-10-19, Central time.
Witnesses4
For
4
Against
0
On
0
Names
For
Self1 registration
Texas Association of Builders1 registration
Texas Public Policy Foundation1 registration
Texas Water Infrastructure Network (TXWIN)1 registration
Sources
4 parsed registrations across the loaded witness lists.
Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.
89R10534 JBD-F
By: Dean
H.B. No. 4373
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a special district to exercise certain
powers and duties following municipal disannexation of certain
areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 43.1463, Local Government Code, is
amended by adding Subsection (f-1) to read as follows:
(f-1) A limited district that was created by the conversion
of a special district under a strategic partnership agreement and
is located in and serving an area that is disannexed under this
section may exercise all powers and duties granted to the former
special district by law in the portion of the disannexed area
located in the district, notwithstanding the strategic partnership
agreement or other agreement executed by the district and the
disannexing municipality before the disannexation.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
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