BILL ANALYSIS

Senate Research Center	H.B. 5668
89R12397 SCF-F	By: Spiller (Parker)
	Local Government
	5/18/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The bill author has informed the committee that under current law, municipal utility districts are generally limited by statutory requirements that apply minimum acreage thresholds and contiguity standards when establishing defined areas for purposes of bond issuance and taxation. These limitations may prevent districts from structuring financing to match the location and scope of specific developments that are geographically separated. H.B. 5668 applies to the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties and authorizes the district to designate defined areas or specific properties�including noncontiguous tracts� for purposes of issuing bonds and levying taxes to fund infrastructure, facilities, or services that primarily benefit those areas. The bill provides the district with additional flexibility to structure financing in accordance with existing authority under Subchapter J, Chapter 54 of the Water Code. 

H.B. 5668 amends current law relating to the powers and duties of the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties and provides authority to impose a tax and issue bonds.

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 Subchapter B, Chapter 8011, Special District Local Laws Code, by adding Section 8011.055, as follows:

Sec. 8011.055. AUTHORITY TO ESTABLISH DEFINED AREAS OR DESIGNATED PROPERTY. Authorizes the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties (district), notwithstanding the acreage requirement under Section 54.801(a) (relating to authorizing certain districts to define areas or designate certain property of the district to pay for certain services), Water Code, to define areas or designate certain property of the district and impose taxes and issue bonds in the defined area or designated property as provided by Subchapter J (Services for Certain Defined Areas and Designated Property), Chapter 54 (Municipal Utility Districts), Water Code, to pay for improvements, facilities, or services that primarily benefit that area or property and do not generally and directly benefit the district as a whole. Authorizes a defined area, notwithstanding any other provision of law, to include a noncontiguous tract.

SECTION 2. Provides that the district retains all rights, powers, privileges, authority, duties, and functions that it had before the effective date of this Act.

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