Q
What does Texas HB5654 do?
HB5654 establishes Montgomery County Municipal Utility District No. 263, transforming an 87. 24-acre tract into a political subdivision with eminent domain and taxation authority.
HB5654
Regular Session
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.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
Texas Commission on Environmental Quality (TCEQ) • Texas Transportation Commission • Montgomery County Commissioners Court • City of Conroe (or applicable municipality with ETJ)
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Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
- Effective Date: June 20, 2025 (Immediate due to supermajority vote).
- Compliance Deadline: January 1, 2026. This is the earliest date landowners may file the petition with TCEQ to appoint temporary directors (Section 8016A.0202).
- Agency Rulemaking: No new rulemaking required. However, the District is subject to existing TCEQ rules (Title 30, Texas Administrative Code) regarding bond feasibility and director appointments.
Immediate Action Plan
- 1. Freeze Petition Filing: Do not attempt to file the petition for temporary directors with TCEQ before January 1, 2026; it will be rejected as statutorily premature.
- 2. Initiate Municipal Consent: Open negotiations with the City of Conroe (or relevant ETJ authority) immediately to secure the Consent Resolution.
- 3. Audit Engineering Plans: Review all current civil engineering plans against the specific road and utility standards of the consenting municipality to ensure future reimbursability.
- 4. Vet Directors: Select five temporary directors and ensure they meet eligibility requirements (residency or land ownership) to avoid delays in Q1 2026.
Operational Changes Required
Contracts
- Reimbursement Agreements: Developers must draft agreements stipulating that infrastructure costs incurred now will be reimbursed by the District later. Warning: Ensure these contracts align with TCEQ allowable cost rules; non-compliant costs will be rejected during the bond application process.
- Municipal Consent Agreement: You must negotiate and execute a consent agreement with the City of Conroe (or applicable municipality) prior to the confirmation election. This agreement typically imposes stricter development standards than county code.
- Public Works Transition: Future construction contracts funded by the District must include statutory requirements for public works, including prevailing wage rates, payment bonds, and performance bonds.
Hiring/Training
- Director Appointments: You must identify five qualified temporary directors. These individuals must be prepared to execute $10,000 faithful performance bonds and take the oath of office immediately upon TCEQ appointment in 2026.
- Professional Services: Retain Bond Counsel and a District Engineer immediately to prepare the creation petition and consent negotiations.
Reporting & Record-Keeping
- Petition for Creation: Prepare a petition detailing the holders of a majority of the assessed value of the land. This document must be ready for filing on January 2, 2026.
- Road Standards Verification: Per Section 8016A.0304, you must document that all road projects meet the construction standards of the municipality (if in ETJ) or county (if outside). Obtain written approval from the Texas Transportation Commission if state roads are involved.
Fees & Costs
- Ad Valorem Taxes: The District is authorized to levy operation and maintenance (O&M) taxes and unlimited contract taxes, subject to voter approval.
- Bond Issuance: The District may issue tax-exempt bonds. Note: Road bonds are strictly capped at 25% of the assessed value of real property in the district at the time of issuance.
Strategic Ambiguities & Considerations
- The "Governance Gap": The District exists legally as of June 20, 2025, but has no Board until 2026. Any infrastructure built during this interim period is at the developer's risk. If construction standards do not match what the future Board (and municipality) requires, the District cannot purchase the assets.
- Assessed Value vs. Bond Capacity: The 25% cap on road bonds creates a financing lag. You cannot issue significant road debt until vertical development creates sufficient tax base value.
Need Help Understanding Implementation?
Our government affairs experts can walk you through this bill's specific impact on your operations.
Schedule ConsultationInformation 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.
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Legislative Timeline
This bill's path through the Texas Legislature
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Official Analysis
BILL ANALYSIS |
| H.B. 5654 |
| By: Metcalf |
| Land & Resource Management |
| Committee Report (Unamended) |
| BACKGROUND AND PURPOSE The bill author has informed the committee of the need for a municipal utility district to be created in Montgomery County for the benefit of certain undeveloped land. H.B. 5654 seeks to provide for the creation of the Montgomery County Municipal Utility District No. 263.
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| CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
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| RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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| ANALYSIS H.B. 5654 amends the Special District Local Laws Code to create the Montgomery County Municipal Utility District No. 263, subject to applicable municipal consent and voter approval at a confirmation election. The bill, among other provisions, grants the district the power to undertake certain road projects and provides for the district's division. The bill authorizes the district, subject to certain requirements, to issue obligations and impose property, operation and maintenance, and contract taxes. The bill expressly prohibits the district from exercising the power of eminent domain if the bill does not receive a two-thirds vote of all the members elected to each house and establishes that this provision is not intended to be an expression of a legislative interpretation of the requirements of Section 17(c), Article I, Texas Constitution. H.B. 5654 establishes that all applicable requirements relating to the following have been fulfilled and accomplished with respect to the bill: ·the legal notice of intention to introduce; ·governor action; ·Texas Commission on Environmental Quality recommendations; and ·the state constitution and laws and legislative rules and procedures.
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| EFFECTIVE DATE January 1, 2026.
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House Authors
Senate Sponsor
Bill Text(with markup)
| H.B. No. 5654 | ||
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| 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. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle F, Title 6, Special District Local Laws | ||
| Code, is amended by adding Chapter 8016A to read as follows: | ||
| CHAPTER 8016A. MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT | ||
| NO. 263 | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 8016A.0101. DEFINITIONS. In this chapter: | ||
| (1) "Board" means the district's board of directors. | ||
| (2) "Commission" means the Texas Commission on | ||
| Environmental Quality. | ||
| (3) "Director" means a board member. | ||
| (4) "District" means the Montgomery County Municipal | ||
| Utility District No. 263. | ||
| Sec. 8016A.0102. NATURE OF DISTRICT. The district is a | ||
| municipal utility district created under Section 59, Article XVI, | ||
| Texas Constitution. | ||
| Sec. 8016A.0103. CONFIRMATION AND DIRECTOR ELECTION | ||
| REQUIRED. The temporary directors shall hold an election to | ||
| confirm the creation of the district and to elect five permanent | ||
| directors as provided by Section 49.102, Water Code. | ||
| Sec. 8016A.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
| temporary directors may not hold an election under Section | ||
| 8016A.0103 until each municipality in whose corporate limits or | ||
| extraterritorial jurisdiction the district is located has | ||
| consented by ordinance or resolution to the creation of the | ||
| district and to the inclusion of land in the district as required by | ||
| applicable law. | ||
| Sec. 8016A.0105. FINDINGS OF PUBLIC PURPOSE AND BENEFIT. | ||
| (a) The district is created to serve a public purpose and benefit. | ||
| (b) The district is created to accomplish the purposes of: | ||
| (1) a municipal utility district as provided by | ||
| general law and Section 59, Article XVI, Texas Constitution; and | ||
| (2) Section 52, Article III, Texas Constitution, that | ||
| relate to the construction, acquisition, improvement, operation, | ||
| or maintenance of macadamized, graveled, or paved roads, or | ||
| improvements, including storm drainage, in aid of those roads. | ||
| Sec. 8016A.0106. INITIAL DISTRICT TERRITORY. (a) The | ||
| district is initially composed of the territory described by | ||
| Section 2 of the Act enacting this chapter. | ||
| (b) The boundaries and field notes contained in Section 2 of | ||
| the Act enacting this chapter form a closure. A mistake made in the | ||
| field notes or in copying the field notes in the legislative process | ||
| does not affect the district's: | ||
| (1) organization, existence, or validity; | ||
| (2) right to issue any type of bond for the purposes | ||
| for which the district is created or to pay the principal of and | ||
| interest on a bond; | ||
| (3) right to impose a tax; or | ||
| (4) legality or operation. | ||
| SUBCHAPTER B. BOARD OF DIRECTORS | ||
| Sec. 8016A.0201. GOVERNING BODY; TERMS. (a) The district | ||
| is governed by a board of five elected directors. | ||
| (b) Except as provided by Section 8016A.0202, directors | ||
| serve staggered four-year terms. | ||
| Sec. 8016A.0202. TEMPORARY DIRECTORS. (a) On or after | ||
| January 1, 2026, the owner or owners of a majority of the assessed | ||
| value of the real property in the district may submit a petition to | ||
| the commission requesting that the commission appoint as temporary | ||
| directors the five persons named in the petition. The commission | ||
| shall appoint as temporary directors the five persons named in the | ||
| petition. | ||
| (b) Temporary directors serve until the earlier of: | ||
| (1) the date permanent directors are elected under | ||
| Section 8016A.0103; or | ||
| (2) January 1, 2030. | ||
| (c) If permanent directors have not been elected under | ||
| Section 8016A.0103 and the terms of the temporary directors have | ||
| expired, successor temporary directors shall be appointed or | ||
| reappointed as provided by Subsection (d) to serve terms that | ||
| expire on the earlier of: | ||
| (1) the date permanent directors are elected under | ||
| Section 8016A.0103; or | ||
| (2) the fourth anniversary of the date of the | ||
| appointment or reappointment. | ||
| (d) If Subsection (c) applies, the owner or owners of a | ||
| majority of the assessed value of the real property in the district | ||
| may submit a petition to the commission requesting that the | ||
| commission appoint as successor temporary directors the five | ||
| persons named in the petition. The commission shall appoint as | ||
| successor temporary directors the five persons named in the | ||
| petition. | ||
| SUBCHAPTER C. POWERS AND DUTIES | ||
| Sec. 8016A.0301. GENERAL POWERS AND DUTIES. The district | ||
| has the powers and duties necessary to accomplish the purposes for | ||
| which the district is created. | ||
| Sec. 8016A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND | ||
| DUTIES. The district has the powers and duties provided by the | ||
| general law of this state, including Chapters 49 and 54, Water Code, | ||
| applicable to municipal utility districts created under Section 59, | ||
| Article XVI, Texas Constitution. | ||
| Sec. 8016A.0303. AUTHORITY FOR ROAD PROJECTS. Under | ||
| Section 52, Article III, Texas Constitution, the district may | ||
| design, acquire, construct, finance, issue bonds for, improve, | ||
| operate, maintain, and convey to this state, a county, or a | ||
| municipality for operation and maintenance macadamized, graveled, | ||
| or paved roads, or improvements, including storm drainage, in aid | ||
| of those roads. | ||
| Sec. 8016A.0304. ROAD STANDARDS AND REQUIREMENTS. (a) A | ||
| road project must meet all applicable construction standards, | ||
| zoning and subdivision requirements, and regulations of each | ||
| municipality in whose corporate limits or extraterritorial | ||
| jurisdiction the road project is located. | ||
| (b) If a road project is not located in the corporate limits | ||
| or extraterritorial jurisdiction of a municipality, the road | ||
| project must meet all applicable construction standards, | ||
| subdivision requirements, and regulations of each county in which | ||
| the road project is located. | ||
| (c) If the state will maintain and operate the road, the | ||
| Texas Transportation Commission must approve the plans and | ||
| specifications of the road project. | ||
| Sec. 8016A.0305. COMPLIANCE WITH MUNICIPAL CONSENT | ||
| ORDINANCE OR RESOLUTION. The district shall comply with all | ||
| applicable requirements of any ordinance or resolution that is | ||
| adopted under Section 54.016 or 54.0165, Water Code, and that | ||
| consents to the creation of the district or to the inclusion of land | ||
| in the district. | ||
| Sec. 8016A.0306. DIVISION OF DISTRICT. This chapter | ||
| applies to any new district created by the division of the district | ||
| under Section 49.316, Water Code, and a new district has all the | ||
| powers and duties of the district. | ||
| SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS | ||
| Sec. 8016A.0401. ELECTIONS REGARDING TAXES OR BONDS. (a) | ||
| The district may issue, without an election, bonds and other | ||
| obligations secured by: | ||
| (1) revenue other than ad valorem taxes; or | ||
| (2) contract payments described by Section | ||
| 8016A.0403. | ||
| (b) The district must hold an election in the manner | ||
| provided by Chapters 49 and 54, Water Code, to obtain voter approval | ||
| before the district may impose an ad valorem tax or issue bonds | ||
| payable from ad valorem taxes. | ||
| (c) The district may not issue bonds payable from ad valorem | ||
| taxes to finance a road project unless the issuance is approved by a | ||
| vote of a two-thirds majority of the district voters voting at an | ||
| election held for that purpose. | ||
| Sec. 8016A.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
| authorized at an election held under Section 8016A.0401, the | ||
| district may impose an operation and maintenance tax on taxable | ||
| property in the district in accordance with Section 49.107, Water | ||
| Code. | ||
| (b) The board shall determine the tax rate. The rate may not | ||
| exceed the rate approved at the election. | ||
| Sec. 8016A.0403. CONTRACT TAXES. (a) In accordance with | ||
| Section 49.108, Water Code, the district may impose a tax other than | ||
| an operation and maintenance tax and use the revenue derived from | ||
| the tax to make payments under a contract after the provisions of | ||
| the contract have been approved by a majority of the district voters | ||
| voting at an election held for that purpose. | ||
| (b) A contract approved by the district voters may contain a | ||
| provision stating that the contract may be modified or amended by | ||
| the board without further voter approval. | ||
| SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS | ||
| Sec. 8016A.0501. AUTHORITY TO ISSUE BONDS AND OTHER | ||
| OBLIGATIONS. The district may issue bonds or other obligations | ||
| payable wholly or partly from ad valorem taxes, impact fees, | ||
| revenue, contract payments, grants, or other district money, or any | ||
| combination of those sources, to pay for any authorized district | ||
| purpose. | ||
| Sec. 8016A.0502. TAXES FOR BONDS. At the time the district | ||
| issues bonds payable wholly or partly from ad valorem taxes, the | ||
| board shall provide for the annual imposition of a continuing | ||
| direct ad valorem tax, without limit as to rate or amount, while all | ||
| or part of the bonds are outstanding as required and in the manner | ||
| provided by Sections 54.601 and 54.602, Water Code. | ||
| Sec. 8016A.0503. BONDS FOR ROAD PROJECTS. At the time of | ||
| issuance, the total principal amount of bonds or other obligations | ||
| issued or incurred to finance road projects and payable from ad | ||
| valorem taxes may not exceed one-fourth of the assessed value of the | ||
| real property in the district. | ||
| SECTION 2. The Montgomery County Municipal Utility District | ||
| No. 263 initially includes all the territory contained in the | ||
| following area: | ||
| BEING a 87.24 acre tract of land in the John Corner Survey, | ||
| Abstract 8, Montgomery County, Texas, and being all of a called | ||
| 6.795 acre tract of land as recorded in Montgomery County Clerk's | ||
| File No. 2016-115162, all of a called 2.538 acre tract as recorded | ||
| under Montgomery County Clerk's File No. 2017-004689, all of a | ||
| called 3.874 acre tract as recorded in Montgomery County Clerk's | ||
| File No. 9810532, all of a called 51.052 acre tract as recorded in | ||
| County Clerk's File No. 2016-053457, a portion of a called 7.03 | ||
| acre tract of land as recorded in County Clerk's File | ||
| No. 2021-055312, and a portion of a called 26.11 acre tract of land | ||
| as recorded in County Clerk's File No. 2020-099492. Said 87.24 acre | ||
| tract being more particularly described as follows, with all | ||
| bearings and grid coordinates referenced to NAD '83 Texas Central | ||
| Zone | ||
| COMMENCING at a 5/8" iron rod found { N: 10134219.32, E: | ||
| 3770074.82} on the southerly Right of Way of State Highway 105, for | ||
| the northwesterly corner of the JW Jolene Subdivision as recorded | ||
| in Cabinet Z Sheet 6077 of the County Map Records, also being the | ||
| northeasterly corner of the said 26.11 acre tract | ||
| THENCE S 09deg 54'13" W a distance of 807.15 feet along the | ||
| westerly line of the JW Jolene Subdivision to a 5/8" iron rod found | ||
| for the southwesterly corner of JW Jolene Subdivision and the POINT | ||
| OF BEGINNING of the herein described tract; | ||
| THENCE S 79deg 28'19" E a distance of 321.02 feet along the | ||
| southerly line of the JW Jolene Subdivision, to a 5/8" iron rod | ||
| found for the southeasterly corner of the said JW Jolene | ||
| Subdivision, also being the southwesterly corner of a called 3.50 | ||
| acre tract of land as recorded in County Clerk's File No. 9356111; | ||
| THENCE S 79deg 46'38" E a distance of 189.11 feet along the | ||
| southerly line of the said 3.50 acre tract, to a 5/8" iron rod found | ||
| on the westerly line of Roman Hills Subdivision, Section 1 as | ||
| recorded in Cabinet A, Sheet 81 of the County Map Records; | ||
| THENCE along the westerly line of Roman Hills Subdivision | ||
| Section 1 the following: | ||
| THENCE S 52deg 21'56" W a distance of 32.70 feet; | ||
| THENCE S 21deg 37'14" W a distance of 369.55 feet; | ||
| THENCE S 56deg 37'54" W a distance of 1220.44 feet; | ||
| THENCE N 80deg 51'39" W a distance of 9.37 feet to the | ||
| southeasterly corner of a called 11.06 acre tract of land as | ||
| recorded in County Clerk's File No. 2020-142820 | ||
| THENCE N 09deg 54'13" E a distance of 794.76 feet along the | ||
| easterly line of the said 11.06 acre tract to a 5/8" iron rod found | ||
| for the northeasterly corner of the said 11.06 acre tract; | ||
| THENCE N 80deg 05'47" W a distance of 600.00 feet to a 5/8" | ||
| iron rod found for the northwesterly corner of the said 11.06 acre | ||
| tract; | ||
| THENCE S 09deg 54'12" W a distance of 812.79 feet along the | ||
| westerly line of the said 11.06 to a 1/2" iron rod for the | ||
| southwesterly corner of the said 11.06 acre tract, on the northerly | ||
| line of a called 104.5 acre tract of land as recorded in County | ||
| Clerk's File No. 2022-122722; | ||
| THENCE N 80deg 07'54" W a distance of 1075.26 feet along the | ||
| northerly line of the said 104.5 acre tract to a 5/8" iron rod found | ||
| for the southwesterly corner of the said 51.052 acre tract; | ||
| THENCE N 09deg 54'32" E a distance of 416.02 feet along the | ||
| westerly line of the said 51.052 acre tract to the southeasterly | ||
| corner of the said 3.874 acre tract; | ||
| THENCE N 80deg 07'20" W a distance of 10.57 feet to a 60' Right | ||
| of Way known as Club Drive and recorded in County Clerk's File | ||
| No. 9219822; | ||
| THENCE along the northeasterly line of Club Drive the | ||
| following: | ||
| THENCE N 09deg 52'40" E a distance of 204.93 feet; | ||
| THENCE with a curve turning to the left with an arc length of | ||
| 1042.73', with a radius of 1082.90', with a chord bearing of N 17deg | ||
| 42'39" W, with a chord length of 1002.91'; | ||
| THENCE N 45deg 10'35" W a distance of 458.77 feet; | ||
| THENCE with a curve turning to the right with an arc length of | ||
| 322.04', with a radius of 337.41', with a chord bearing of N 17deg | ||
| 51'07" W, with a chord length of 309.95' to the southerly Right of | ||
| Way of State Highway No. 105 and being the northwesterly corner of | ||
| the herein described tract; | ||
| THENCE along the southerly line of State Highway No 105 the | ||
| following: | ||
| THENCE S 80deg 28'30" E a distance of 43.41 feet; | ||
| THENCE S 80deg 27'13" E a distance of 649.95 feet; | ||
| THENCE S 83deg 59'40" E a distance of 151.78 feet; | ||
| THENCE S 83deg 46'05" E a distance of 150.43 feet; | ||
| THENCE S 80deg 12'35" E a distance of 306.70 feet; | ||
| THENCE S 69deg 41'13" E a distance of 216.36 feet; | ||
| THENCE N 19deg 48'21" E a distance of 40.00 feet; | ||
| THENCE S 80deg 07'48" E a distance of 550.86 feet to the | ||
| northwesterly corner of a called 3.948 acre tract of land as | ||
| recorded in County Clerk's File No. 2016-102606; | ||
| THENCE S 09 deg 57'38" W a distance of 867.19 feet to the | ||
| southwesterly corner of the said 3.948 acre tract; | ||
| THENCE S 80deg 05'47" E a distance of 200.00 feet to the | ||
| southeasterly corner of the said 3.948 acre tract; | ||
| THENCE N 09deg 54'13" E a distance of 50.68 feet to a point | ||
| along the easterly line of the said 3.948 acre tract; | ||
| THENCE S 79deg 28'19" E a distance of 885.05 across the said | ||
| 7.03 acre tract and the said 26.11 acre tract, to the POINT OF | ||
| BEGINNING, and containing 87.24 acres of land, more or less. | ||
| SECTION 3. (a) The legal notice of the intention to | ||
| introduce this Act, setting forth the general substance of this | ||
| Act, has been published as provided by law, and the notice and a | ||
| copy of this Act have been furnished to all persons, agencies, | ||
| officials, or entities to which they are required to be furnished | ||
| under Section 59, Article XVI, Texas Constitution, and Chapter 313, | ||
| Government Code. | ||
| (b) The governor, one of the required recipients, has | ||
| submitted the notice and Act to the Texas Commission on | ||
| Environmental Quality. | ||
| (c) The Texas Commission on Environmental Quality has filed | ||
| its recommendations relating to this Act with the governor, the | ||
| lieutenant governor, and the speaker of the house of | ||
| representatives within the required time. | ||
| (d) All requirements of the constitution and laws of this | ||
| state and the rules and procedures of the legislature with respect | ||
| to the notice, introduction, and passage of this Act are fulfilled | ||
| and accomplished. | ||
| SECTION 4. (a) If this Act does not receive a two-thirds | ||
| vote of all the members elected to each house, Subchapter C, Chapter | ||
| 8016A, Special District Local Laws Code, as added by Section 1 of | ||
| this Act, is amended by adding Section 8016A.0307 to read as | ||
| follows: | ||
| Sec. 8016A.0307. NO EMINENT DOMAIN POWER. The district may | ||
| not exercise the power of eminent domain. | ||
| (b) This section is not intended to be an expression of a | ||
| legislative interpretation of the requirements of Section 17(c), | ||
| Article I, Texas Constitution. | ||
| SECTION 5. This Act takes effect January 1, 2026. | ||
| TO: | Honorable Gary Gates, Chair, House Committee on Land & Resource Management |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB5654 by Metcalf (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.), As Introduced |
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
The fiscal implications of the bill to the district cannot be determined due to the circumstances relating to the district's exercise of eminent domain power, issuance of bonds, or imposition of assessments, fees, and taxes being unknown. No fiscal implication to other units of local government is anticipated.
| Source Agencies: |
| LBB Staff: | JMc, SZ, BC, CWi |
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Quick Reference
Frequently Asked Questions
Common questions about HB5654
Q
Who authored HB5654?
HB5654 was authored by Texas Representative William Metcalf during the Regular Session.
Q
When was HB5654 signed into law?
HB5654 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB5654?
HB5654 is enforced by Texas Commission on Environmental Quality (TCEQ), Texas Transportation Commission, Montgomery County Commissioners Court and City of Conroe (or applicable municipality with ETJ).
Q
How urgent is compliance with HB5654?
The compliance urgency for HB5654 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB5654?
The cost impact of HB5654 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB5654 address?
HB5654 addresses topics including montgomery county municipal utility district no. 263, 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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