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HB5665

Regular Session

Relating to the creation of the Waller County Municipal Utility District No. 70; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Moderate
Low Cost
Effective:2025-06-20
Enforcing Agencies

Municipalities (with jurisdiction over the District's territory) • Texas Commission on Environmental Quality (TCEQ) • Texas Transportation Commission • Waller County Commissioners Court

HB5665
Relating to the creation of the Waller County Municipal Utility District No. 70; granting a limited power of eminent domain; providing authority to is...
Moderate Urgency
Heavily Contested
House Vote106 - 42
YEA
NAY
72% in favor148 voting
Senate Vote28 - 3
YEA
90% in favor31 voting
45
Total Opposition Votes
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
MunicipalitiesTCEQTexas Transportation CommissionWaller County Commissioners Court
Primary Author: Rep. Stan Kitzman
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Immediate).
  • Compliance Deadline: Immediate. You must update "Notice to Purchasers" forms before the next real estate transaction closes within the District boundaries.
  • Agency Rulemaking: No new state rules are required. However, the District is non-operational for tax purposes until a Confirmation Election is held. If permanent directors are not elected by June 20, 2029, the TCEQ must intervene.

Immediate Action Plan

  • 1. Verify Boundaries: Confirm if your assets fall within the Isaac Donoho or James Baker Surveys (approx. 210 acres) in Waller County.
  • 2. Update Disclosures: Immediately revise all sales contracts to include the statutory MUD tax notice.
  • 3. Convene the Board: Contact the five named temporary directors (Angell, Bouquet, Nunez, Tennis, Wilcox) to hold the organizational meeting.
  • 4. Secure Consent: File a petition for consent with the municipality having ETJ jurisdiction to clear the path for the confirmation election.
  • 5. Draft Reimbursement: Prepare the reimbursement agreement to ensure developer infrastructure costs are legally eligible for future bond repayment.

Operational Changes Required

Contracts

  • Reimbursement Agreements: Developers must execute agreements with the District to define how upfront infrastructure costs will be repaid via bond proceeds.
  • Public Works Bidding: Construction contracts intended for District acquisition or financing must shift from private procurement to public bidding standards (Texas Gov't Code Chapter 2253) and include prevailing wage mandates.
  • Sales Contracts: All real estate purchase agreements within the District must now include the statutory MUD notice (Texas Water Code § 49.452).

Hiring/Training

  • Sales Staff: Train sales teams immediately on the new tax disclosure requirements; failure to provide the correct MUD notice at closing allows the buyer to rescind the contract and sue for damages.
  • Professional Services: The Board must retain specialized bond counsel, a financial advisor, and a District engineer to prepare the bond application report.

Reporting & Record-Keeping

  • Election Results: File confirmation election results with the TCEQ and record them in Waller County land records.
  • Infrastructure Plans: If roads are to be maintained by the state, plans must be submitted to the Texas Transportation Commission for approval *prior* to construction.

Fees & Costs

  • New Tax Liability: The District is authorized to levy an unlimited ad valorem tax rate for water/sewer debt service and a capped rate for road bonds (25% of assessed value).
  • Impact Fees: The Board may adopt resolutions to impose impact fees and assessments on new development.

Strategic Ambiguities & Considerations

  • Municipal Consent & ETJ: The Act prohibits the confirmation election until "each municipality" with jurisdiction consents. If the tract lies within a disputed Extraterritorial Jurisdiction (ETJ) or straddles boundaries, District activation will stall. You must secure a formal resolution from the relevant City Council immediately.
  • Conflicting Engineering Standards: Section 8019A.0304 mandates compliance with municipal standards (if in an ETJ) or county standards (if not). Expect conflicts between City and Waller County drainage/road specs. You must negotiate an interlocal or development agreement to define the controlling standard before design begins to prevent rejection of the finished infrastructure.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Apr 2, 2025
Passed House
May 7, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
TopicsWaller County Municipal Utility District No. 70Special Districts & AuthoritiesSpecial Districts & Authorities--municipal Utility DistrictsSpecial Districts & Authorities--water & Utility
03

House Authors

Rep. Stan KitzmanRepublican · Primary Author

Senate Sponsor

Sen. Lois KolkhorstRepublican · Primary Sponsor

Bill Text(with markup)

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Quick Reference

Frequently Asked Questions

Common questions about HB5665

Q

What does Texas HB5665 do?

HB5665 immediately establishes Waller County Municipal Utility District No. 70, a new political subdivision with the power to levy unlimited ad valorem taxes for utility bonds and exercise eminent domain. Developers and landowners within the defined 210-acre tract must immediately coordinate with appointed temporary directors to initiate infrastructure financing, secure municipal consent, and update real estate sales disclosures to avoid contract rescission.

Q

Who authored HB5665?

HB5665 was authored by Texas Representative Stan Kitzman during the Regular Session.

Q

When was HB5665 signed into law?

HB5665 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB5665?

HB5665 is enforced by Municipalities (with jurisdiction over the District's territory), Texas Commission on Environmental Quality (TCEQ), Texas Transportation Commission and Waller County Commissioners Court.

Q

How urgent is compliance with HB5665?

The compliance urgency for HB5665 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of HB5665?

The cost impact of HB5665 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB5665 address?

HB5665 addresses topics including waller county municipal utility district no. 70, special districts & authorities, special districts & authorities--municipal utility districts and special districts & authorities--water & utility.

Legislative data provided by LegiScanLast updated: November 25, 2025

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