H.B. No. 5654 establishes the Montgomery County Municipal Utility District No. 263, granting it limited powers of eminent domain and the authority to issue bonds, impose assessments, fees, and taxes. The bill introduces Chapter 8016A to the Special District Local Laws Code, detailing the governance structure of the district, which includes a board of five elected directors serving staggered four-year terms. The district's creation requires consent from municipalities within its jurisdiction and is intended to serve public purposes such as the construction and maintenance of roads. Financial provisions allow the district to issue bonds and impose taxes, including an operation and maintenance tax, contingent upon voter approval, while specifying that certain bonds related to road projects require a two-thirds majority vote.

A significant aspect of the bill is the introduction of Section 8016A.0307, which explicitly states that the district may not exercise the power of eminent domain, thereby protecting property rights within the district by preventing the acquisition of private property for public use without the owner's consent. The bill also outlines procedural steps for compliance with legal requirements, including the publication of a legal notice and submission to the Texas Commission on Environmental Quality. The Act is set to take effect on January 1, 2026, unless it fails to receive a two-thirds vote from all members elected to each house, in which case the new section regarding eminent domain would still be added to the law.

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()