Bill > HB5654

This bill creates the Montgomery County Municipal Utility District No. 263, a special district in Texas with several key powers and provisions. The district will be governed by a five-member board of directors, initially with temporary directors appointed by the Texas Commission on Environmental Quality, and will have the authority to provide municipal utility services and develop infrastructure. The district can design, construct, and maintain roads, storm drainage systems, and other public improvements, and may issue bonds and impose taxes after obtaining voter approval. Specifically, the district is limited to issuing road project bonds up to one-fourth of the assessed value of its real property and must comply with municipal and county construction standards. The district requires consent from local municipalities before creation and must hold elections to confirm its establishment, impose taxes, and issue bonds payable from ad valorem taxes. The initial district territory is precisely defined in the bill as an 87.24-acre tract in Montgomery County, and the bill includes a contingency provision that if the act does not receive a two-thirds vote, the district will be prohibited from exercising eminent domain powers. The district is set to become effective on January 1, 2026.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB5654