H.B. No. 5659 introduces new procedural requirements for interbasin transfers of water involving the Northeast Texas Municipal Water District. The bill adds Sections 17A and 17B to Chapter 78 of the Acts of the 53rd Legislature, which mandate that the Board of Directors of the District must hold a public hearing before entering into any contract for an interbasin transfer or acquiring a permit from the Texas Commission on Environmental Quality. During this hearing, interested individuals will have the opportunity to speak on the proposed transfer, and notice of the hearing must be provided in accordance with existing regulations.

Additionally, the bill stipulates that any contract or authorization related to interbasin transfers can only be approved if a majority of the governing bodies of at least five cities, which have the right to appoint directors to the Board, vote in favor of it. This requirement aims to ensure greater transparency and community involvement in decisions regarding water transfers. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.