HB 602 revises the qualifications for serving on the board of directors of a Municipal Utility District (MUD), as outlined in Section 54.102 of the Water Code. The bill eliminates the previous option for directors to qualify based solely on being a registered voter in the district and instead requires all directors to own property subject to taxation within the district. Additionally, directors must be at least 18 years old and residents of Texas. This change prioritizes board membership by individuals with a vested financial interest in district matters. Current board members are allowed to finish their terms, with the new qualifications applying only to appointments or elections made after the bill’s effective date.