Texas 2025 - 89th Regular

Texas House Bill HB5654

Filed
3/24/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the creation of the Montgomery County Municipal Utility District No. 263; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Impact

If enacted, HB5654 will allow the Montgomery County Municipal Utility District No. 263 to operate with specific powers aligned with those specified in Texas state law governing municipal utility districts. This includes the ability to serve a public purpose through the organization and maintenance of utilities and infrastructure that benefit the local community. The bill includes provisions for issuing bonds and collecting taxes without an election under certain conditions, which proponents argue will streamline funding and operational processes.

Summary

House Bill 5654 aims to establish the Montgomery County Municipal Utility District No. 263 and grants it the authority to issue bonds, impose assessments, and levy taxes. The bill outlines the district's creation under Texas law, specifying its governing structure, powers, and initial territory. The legislation is intended to facilitate the administration and maintenance of essential utility services, including water and road improvements, within the specified geographic area of Montgomery County.

Sentiment

The sentiment around HB5654 is generally supportive among local stakeholders and municipal officials who see it as a necessary step for improving utility services and infrastructure in rapid-growth areas within Montgomery County. However, there may be concerns regarding the implications of property assessments and potential tax increases for residents, which could lead to divided opinions among the public. The establishment of such a district raises questions about governance and accountability, especially regarding financial decision-making and the powers granted to the district.

Contention

Notable points of contention include the limited power of eminent domain granted to the district, which may lead to disagreements on property rights and development versus the needs for infrastructure improvements. Some residents may worry about the implications of setting a precedent for increased taxation and additional governmental authority without direct voting mechanisms for future financial obligations. Balancing local governance and community needs against the operational efficiency sought through this bill will likely be a critical focus during discussions and evaluations before the bill can proceed to implementation.

Texas Constitutional Statutes Affected

Water Code

  • Chapter 49. Provisions Applicable To All Districts
    • Section: 004
    • Section: 316
    • Section: 107
    • Section: 108
    • Section: 101
    • Section: 004
  • Chapter 54. Municipal Utility Districts
    • Section: 016
    • Section: 0165
    • Section: 601
    • Section: 602
    • Section: 101
    • Section: New Section

Companion Bills

No companion bills found.

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