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.
HB 5654 creates Montgomery County Municipal Utility District No. 263, a new entity to provide water, sewer, and other utility services in a designated area of Montgomery County. The bill grants the district limited authority to take private property (eminent domain) for infrastructure, issue bonds for funding, and impose property assessments, fees, and taxes to cover costs. This directly affects property owners within the district's boundaries, who will be subject to these new financial obligations. The bill was signed into law in June 2025 and takes effect January 1, 2026.
Bill status
signed
all 5 stages cleared
Introduction
Apr 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
Jun 2025
Introduced Apr 7, 2025
Signed Jun 20, 2025
Maddy AI version diff · 2 comparisons
What changed between versions
Engrossed
→
Enrolled
·
5 edits
·
May 31, 2025
MODERATE
This bill creates a new municipal utility district in Montgomery County, Texas, to manage road infrastructure and storm drainage. The Enrolled version includes additional provisions ensuring the district cannot exercise eminent domain power unless it receives a two-thirds legislative vote, and adds detailed requirements for road project standards and compliance with local municipal ordinances.
Scope change
The bill's scope expanded to include explicit road project standards and requirements, compliance with municipal consent ordinances, and a specific limitation on eminent domain powers that requires supermajority legislative approval.
REQUIREMENT
Added Section 8016A.0307 which prohibits the district from exercising eminent domain power unless the Act receives a two-thirds vote from both legislative chambers.
Added detailed road project standards requiring compliance with municipal construction standards, zoning, and subdivision requirements in Section 8016A.0304.
Added requirement for the district to comply with all applicable municipal ordinance or resolution requirements when creating the district or including land in it.
TIMELINE
Confirmed the bill takes effect on January 1, 2026, with temporary directors serving until permanent directors are elected or January 1, 2030.
TECHNICAL
Changed formatting from draft version to enrolled version with proper legislative signatures and certification of passage by House and Senate.
Floor votes · House May 7, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history
Actions timeline
Total actions
48
Key actions
14
Committee
10
May 31, 2025
Upper · Passed
Signed in the Senate
upper
May 30, 2025
Lower · Passed
Signed in the House
lower
May 29, 2025
Lower · Passed
Senate passage reported
lower
May 28, 2025
Upper · Passed
Passed
upper
May 22, 2025
Upper · Passed
Committee report printed and distributed
upper
May 22, 2025
Upper · Passed
Reported favorably w/o amendments
upper
May 22, 2025
Upper · Passed
Vote taken in committee
upper
May 21, 2025
Committee
Referred to Local Government
upper
May 21, 2025
Introduced
Read first time
upper
May 8, 2025
Introduced
Received from the House
upper
May 7, 2025
Lower · Passed
Passed
lower
May 7, 2025
Lower · Passed
Passed to engrossment
lower
Apr 29, 2025
Lower · Passed
Committee report distributed
lower
Apr 24, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
Apr 24, 2025
Committee
Recommended to be sent to Local & Consent
lower
Apr 17, 2025
Lower · Passed
Left pending in committee
lower
Apr 17, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Apr 7, 2025
Committee
Referred to Land & Resource Management
lower
Apr 7, 2025
Introduced
Read first time
lower
Mar 24, 2025
Signed into law
Transmitted to the Governor
lower
2 primary · 0 co-sponsors
Sponsors
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