BILL ANALYSIS

Senate Research Center	H.B. 5656
89R17789 SCR-F	By: Lalani (Kolkhorst)
	Local Government
	5/14/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Continuing development and growth in Fort Bend County has created the need for permanent improvements such as water supply and distribution facilities, wastewater collection and treatment facilities, drainage projects, road facilities, and recreational facilities.

Pursuant to Article XVI, Section 59, and Article III, Section 52, of the Texas Constitution, and subject to the continuing supervisory jurisdiction of the Texas Commission on Environmental Quality, this bill seeks to create a municipal utility district to be known as Fort Bend County Municipal Utility District No. 263 over an approximate 1,617-acre tract of land located within the extraterritorial jurisdiction of the City of Richmond, Texas, to provide for the construction and financing of infrastructure improvements.

The district is to be created under Water Code provisions applicable to all water districts and to municipal utility districts and under constitutional provisions relating to conservation and reclamation districts. The district will have standard road powers and must comply with all applicable road standards. The district will have the authority to issue tax-exempt bonds to purchase, acquire, or construct facilities. It is also necessary to empower the district with authority to impose a tax and to grant the district a limited power of eminent domain. This bill provides for the creation, administration, powers, duties, operation, and financing of the district.

H.B. 5656 amends current law relating to the creation of the Fort Bend County Municipal Utility District No. 263, grants a limited power of eminent domain, provides authority to issue bonds and, provides authority to impose assessments, fees, and taxes.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 8018A, as follows:

CHAPTER 8018A.� FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 263

Sets forth standard language for the creation of the Fort Bend County Municipal Utility District (district). Sets forth standards, procedures, requirements, and criteria for:

Creation, purpose, and approval of the district (Sections 8018A.0101-8018A.0106);

Size, composition, and election of the board of directors of the district, including the appointment of temporary directors (Sections 8018A.0201-8018A.0202);

Power and duties of the district (Sections 8018A.0301-8018A.0306); and

General financial provisions and authority to impose taxes and issue bonds and other obligations for the district (Sections 8018A.0401-8018A.0503).

SECTION 2. Sets forth the initial boundaries of the district.

SECTION 3. Provides that all requirements of the constitution and the laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act are fulfilled and accomplished.

SECTION 4.� (a) Provides that, if this Act does not receive a two-thirds vote of all the members elected to each house, Subchapter C, Chapter 8018A, Special District Local Laws Code, as added by Section 1 of this Act, is amended by adding Section 8018A.0307, as follows:

Sec. 8018A.0307.� NO EMINENT DOMAIN POWER. Prohibits the district from exercising the power of eminent domain.

(b) Provides that this section is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c) (relating to authorizing the legislature

to enact a certain law granting the power of eminent domain to an entity only on a two-thirds vote of all the members elected to each house), Article I (Bill of Rights), Texas Constitution.

SECTION 5. Effective date: upon passage or September 1, 2025.