Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, House Bill 5659 strips the Northeast Texas Municipal Water District (NETMWD) Board of its unilateral authority to approve interbasin water transfers. Power has shifted to the member cities; you must now secure affirmative votes from at least five member city councils and hold a mandatory public hearing before any contract is valid.
Rep. Jay Dean·House Bill·Regular Session
Governing bodies of the Member Cities of NETMWD (City Councils) • Northeast Texas Municipal Water District (NETMWD) Board of Directors
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-06-22). Review with your legal and compliance teams to understand implications.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Existing executed contracts remain valid. However, all pending negotiations must be paused. Future Water Supply Agreements and Master Service Agreements must include a Condition Precedent clause, stating the agreement is not effective until the District provides certified resolutions from five member cities.
Government Relations and Legal teams must pivot strategy. You can no longer rely solely on relationships with the NETMWD Board. Your team must be prepared to lobby and present before the City Councils of the member cities (e.g., Marshall, Jefferson, Avinger).
Closing binders for water transactions must now contain:
While there are no new statutory fees, businesses must budget for a 90 to 120-day delay in project timelines to accommodate the notice period and the scheduling of five separate city council votes. Legal and lobbying costs will increase commensurate with this expanded political scope.
The statute forbids the District to "acquire a permit" without city approval but does not specify if this approval is required *before filing* the application with TCEQ or *before final issuance*.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a 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.
This bill's path through the Texas Legislature
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Common questions about HB5659
Effective immediately, House Bill 5659 strips the Northeast Texas Municipal Water District (NETMWD) Board of its unilateral authority to approve interbasin water transfers. Power has shifted to the member cities; you must now secure affirmative votes from at least five member city councils and hold a mandatory public hearing before any contract is valid.
HB5659 was authored by Texas Representative Jay Dean during the Regular Session.
HB5659 was signed into law by Governor Greg Abbott on June 22, 2025.
HB5659 is enforced by Governing bodies of the Member Cities of NETMWD (City Councils) and Northeast Texas Municipal Water District (NETMWD) Board of Directors.
The regulatory priority for HB5659 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB5659 is estimated as "low". This may vary based on industry and implementation requirements.
HB5659 addresses topics including special districts & authorities, special districts & authorities--municipal utility districts, special districts & authorities--water & utility, northeast texas municipal water district and public notice.
Key dates for HB5659: Effective date is 2025-06-22. Consult with legal counsel regarding applicability.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
