HB5661

Regular Session

Relating to the creation of the Fort Bend County Municipal Utility District No. 286; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

ModeratePlan for compliance

High Cost

Effective:2025-06-20

Enforcing Agencies

Texas Commission on Environmental Quality (TCEQ) • City of Rosenberg (Municipal Consent & Development Agreement) • Texas Transportation Commission (Road project approval if state-maintained)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Law is currently active due to 2/3 vote passage).
Compliance Deadline: Immediate. Temporary Directors must convene for an organizational meeting. The Development Agreement must be executed prior to the confirmation election.
Agency Rulemaking: No new state agency rules required. However, the District Board must immediately adopt internal orders to govern elections and taxation.

Immediate Action Plan

Convene the Board: Hold the organizational meeting of the Temporary Directors immediately to elect officers.
Engage the City: Initiate formal negotiations with the City of Rosenberg regarding the Development Agreement and annexation timeline.
Launch Transparency Portal: Activate the District website to satisfy Tax Code transparency requirements.
Secure Insurance: Purchase D&O liability insurance and execute Director bonds.

Operational Changes Required

Contracts

Mandatory Development Agreement: You must negotiate and execute a tri-party agreement between the District, the City of Rosenberg, and majority landowners. This contract is a condition precedent for all future financing.
Reimbursement Agreements: Developers advancing infrastructure funds must execute agreements with the District that strictly adhere to TCEQ rules to ensure future repayment eligibility from bond proceeds.
Construction Contracts: Contracts for road projects must specify adherence to City of Rosenberg or Fort Bend County construction standards to ensure future conveyance.

Hiring/Training

Board Organization: The five named Temporary Directors (Arce, Moarefi, Aussenberg, Chun, Olsen) must execute $10,000 performance bonds and obtain Directors & Officers (D&O) liability insurance immediately.
Consultant Retention: The Board must appoint legal counsel, a financial advisor, and a district engineer to prepare the Bond Application Report for the TCEQ.

Reporting & Record-Keeping

Website Compliance: You must immediately launch a publicly accessible website containing tax rates, financial data, and board information to comply with Tax Code Sec. 26.18.
Jurisdictional Filings: The District must file a copy of HB5661 and a boundary map with the TCEQ and the Fort Bend County Clerk.

Fees & Costs

Unlimited Tax Liability: The District is authorized to impose unlimited ad valorem taxes to secure bond payments, subject to voter approval.
Maintenance Budgeting: Until roads are formally accepted by the City or County, the District must budget for ongoing road maintenance.

Strategic Ambiguities & Considerations

Municipal Veto Power: The statute requires a "mutually approved" Development Agreement but does not compel the City of Rosenberg to sign. The City holds effective veto power; if they refuse terms, the District is legally frozen and cannot issue bonds.
Road Acceptance Risk: While the District is authorized to convey roads to the state, county, or municipality, acceptance is not automatic. If the receiving entity declines the infrastructure, the District retains long-term maintenance liability, which will impact the operating tax rate.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsFort Bend County Municipal Utility District No. 286 Special Districts & Authorities Special Districts & Authorities--municipal Utility Districts Special Districts & Authorities--water & Utility

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

C.S.H.B. 5661

By: Gates

Land & Resource Management

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee of the need for a municipal utility district to be created in Fort Bend County for the benefit of certain undeveloped land. C.S.H.B. 5661 seeks to provide for the creation of the Fort Bend County Municipal Utility District No. 286.

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.

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.

ANALYSIS

C.S.H.B. 5661 amends the Special District Local Laws Code to create the Fort Bend County Municipal Utility District No. 286, subject to applicable municipal consent, a certain development agreement, 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 and for a district website with certain public tax information. The bill authorizes the district, subject to certain requirements, to issue obligations and impose a property tax. 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.

C.S.H.B. 5661 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.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 5661 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the substitute provides for a development agreement between the district, the City of Rosenberg, and the owner or owners of a majority of the assessed value of real property in the district, the introduced provided for a development and operating agreement between those entities and contained a specification, which the substitute omits, that such agreement include any limitations imposed by the city.

Whereas the introduced provided for the appointment of temporary directors by landowner petition, the substitute names the temporary directors.

The introduced and the substitute differ with respect to the district's boundaries.

House Authors

Rep. Gary GatesRepublican · Primary Author

Senate Sponsor

Sen. Joan HuffmanRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 5661

AN ACT

relating to the creation of the Fort Bend County Municipal Utility

District No. 286; 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 8017A to read as follows:

CHAPTER 8017A. FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT

NO. 286

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8017A.0101. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Rosenberg, Texas.

(3) "Commission" means the Texas Commission on

Environmental Quality.

(4) "Director" means a board member.

(5) "District" means the Fort Bend County Municipal

Utility District No. 286.

Sec. 8017A.0102. NATURE OF DISTRICT. The district is a

municipal utility district created under Section 59, Article XVI,

Texas Constitution.

Sec. 8017A.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. 8017A.0104. CONSENT OF MUNICIPALITY AND DEVELOPMENT

AGREEMENT REQUIRED. (a) The temporary directors may not hold an

election under Section 8017A.0103 or to authorize the issuance of

bonds until:

(1) the governing body of the city by ordinance or

resolution consents to the creation of the district and to the

inclusion of land in the district; and

(2) the district, the city, and the owner or owners of

a majority of the assessed value of real property in the district

negotiate and execute a mutually approved and accepted development

agreement.

(b) The city's consent under Subsection (a) must be granted

in the manner provided by Section 54.016, Water Code, for including

land within the corporate limits or extraterritorial jurisdiction

of a city.

Sec. 8017A.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. 8017A.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. 8017A.0201. GOVERNING BODY; TERMS. (a) The district

is governed by a board of five elected directors.

(b) Except as provided by Section 8017A.0202, directors

serve staggered four-year terms.

Sec. 8017A.0202. TEMPORARY DIRECTORS. (a) The temporary

board consists of:

(1) Mark Arce;

(2) Houyshar Moarefi;

(3) Neil Aussenberg;

(4) Russell Chun; and

(5) Kelsey Olsen.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under

Section 8017A.0103; or

(2) the fourth anniversary of the effective date of

the Act enacting this chapter.

Section 8017A.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 8017A.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. 8017A.0301. GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 8017A.0302. MUNICIPAL UTILITY DISTRICT POWERS AND

DUTIES. The district has the powers and duties provided by the

general law of this state, including Section 52, Article III, Texas

Constitution, and Chapters 49 and 54, Water Code, applicable to

municipal utility districts created under Section 59, Article XVI,

Texas Constitution.

Sec. 8017A.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. 8017A.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.

Texas Transportation Commission must approve the plans and

specifications of the road project.

Sec. 8017A.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. 8017A.0306. PUBLIC INFORMATION. (a) The district

shall maintain an Internet website.

(b) The board shall make available on the district's

Internet website the information required under Section 26.18, Tax

Code.

Sec. 8017A.0307. 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. BONDS AND OTHER OBLIGATIONS

Sec. 8017A.0401. 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. 8017A.0402. 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.

SECTION 2. The Fort Bend County Municipal Utility District

No. 286 initially includes all the territory contained in the

following area:

Being a 97.5629 acres (4,249,840 square feet) of land situated in

the H&TC RR CO Survey, A-208 of Fort Bend County, Texas and being

all of Two (2) 48.650 acre tracts of land as described in on

instrument to

Alexander E. Brodsky by Warranty Deed with Vendors Lien, recorded

in Volume 598, Page 885 of the Deed Records of Fort Bend County,

Texas (D.R.F.B.C.T.),said 97.5629 acre tract of land described by

metes and bounds as follows:

COMMENCING of a 1/2 inch iron pipe found lying in the northeast line

of a called 16.511 acre tract of land as described in an instrument

to David Waddell Vogelsang Trust by General Warranty Deed recorded

under Clerk's File Number (C.F.N.) 2012033682 of the Official

Public Records of Fort Bend County, Texas (O.P.R. F.B.C.T), being

the most westerly corner of a called 47.72 acre tract of land as

described in an instrument to James White, recorded under C.F.N.

9715442 of the 0.P.R.F.B.C.T. and the most southerly corner of

called 80 acre tract of land as described in an instrument to Rhonda

Rand Hill, as Trustee of The Rhonda Rand Hill Revocable Living Trust

by Special Warranty Deed recorded under C.F.N. 2016036341 O.P.R.

F.B.C.T.;

THENCE North 47° 46' 10" West, along and with the northeast line of

said 16.511 acre tract, a called 50.11 acre tract of land as

described in an instrument to Richard Lee Carney, recorded under

C.F.N. 2017019399 of the O.P.R. F.B.C.T., a distance of 977.00 feet

to a 5/8 inch iron rod with cap stamped "FULCRUM LAND SURVEYING",

for the most northerly corner of said 50.11 acre tract of land, most

easterly corner of said 48.650 acre tract and POINT OF BEGINNING of

the herein described tract;

THENCE South 42° 11' 52" West, along and with the north line of said

50.11 acre tract of land, a distance of 2635.73 feet to a PK-Nail

set, being in the centerline of Blase Road, a Public Asphalt Road,

for the most southerly corner of said 48.650 acre and herein

described tract;

THENCE North 47° 52' 22" West, along and with said Blase Road

centerline, a distance of 1667.62 feet to a PK-Nail set, being the

centerline intersection of said Blase Road and Zunker Road, a 60'

Public asphalt Road, for the most westerly corner of said 48.650

acre and herein described tract;

THENCE North 42° 16' 26" East, along and with said Zunker Road

centerline, a distance of 2320.07 feet to a PK-Nail set, for the

most westerly corner of a called 3.293 acre tract of land as

described in an Instrument to Randall R. Schmidt by General

Warranty Deed with Vendors Lien recorded under C.F.N. 2001022111 of

the O.P.R. F.B.C.T.;

THENCE South 47° 46' 10" East, along and with the southwest line of

said 3.293 acre tract of land, passing a 1/2 inch pipe found for a

distance of 40.27 feet, being the apparent right of way line of

Zunker Road, and continuing for a total distance of 450.29 feet to a

1/2 inch pipe found, marking the most southerly corner of said 3.293

acre tract of land;

THENCE North 42° 13' 20" East, along and with the southeast line of

said 3.293 acre tract of land, a distance of 318.67 feet to a 5/8

inch iron rod with cap found, for the most easterly corner of said

3.293 acre tract of land, being the southwest line of said 80 acre

tract of land;

THENCE South 47° 46' 10" East, along and with the southwest line of

said 80 acre tract of land, a distance of 1214.11 feet to the POINT

OF BEGINNING and containing a computed 97.5629 acres (4,249,840

square feet) of land.

Being a 79.5635 acres (3,465,787 square feet) of land situated in

the H&TC RR CO Survey, A-208 of Fort Bend County, Texas and being

all of a called 80 acre tract of land as described in an instrument

to Rhonda Rand Hill, as Trustee of The Rhonda Rand Hill Revocable

Living Trust, recorded under Clerks File Number (C.F.N.) 2016036341

of the Official Public Records of Fort Bend County, Texas (O.P.R.

F.B.C.T), said 79.5635 acre tract of land described by metes and

bounds as follows:

BEGINNING at a 1/2 inch iron pipe found lying in the northeast line

of a called 16.511 acre tract of land as described in an instrument

to Christian James Garcia, recorded under C.F.N. 2012033682 of the

O.P.R. F.B.C.T., being the most easterly corner of a called 47.72

acre tract of land as described in an instrument to James White,

recorded under C.F.N. 9715442 of the O.P.R. F.B.C.T. and the most

southerly corner of said 80 acre tract of land and herein described

tract;

THENCE North 47°46'10" West, along and with the northeast line of

said 16.511 acre tract, a called 50.11 acre tract of land as

described in an instrument to Richard Lee Carney, recorded under

C.F.N. 2017019399 of the O.P.R. F.B.C.T., a called Two 48.650 acre

tracts of land as described in an instrument to Alexander E.

Brodsky, recorded in Volume 598, Page 885 of the Deed Records of

Fort Bend County, Texas (D.R. F.B.C.T.), and a called 3.293 acre

tract of land as described in an instrument to Randall R. Schmidt,

recorded under C.F.N. 2001022111 of the O.P.R. F.B.C.T., passing a

distance of 21291.12 feet for a 5/8 inch iron rod with cap found for

the most easterly corner of said 3.293 acre tract of land, passing a

distance of 2601.00 feet for a 5/8 inch iron rod with cap found

being the apparent right of way line of Zunker Road, a 60' public

asphalt road, for a total distance of 2641.12 feet to center of

Zunker Road;

THENCE North 42°13'20" East, along and with the center line of

Zunker Road, a distance of 1315.06 feet to a 60-D Nail set for the

most westerly corner of a called 2.471-acre tract of land as

described in an instrument to Christian James Garcia, recorded

under C.F.N. 202121913 of the O.P.R. F.B.C.T. and the most

northerly corner of said 80 acre tract of land and the herein

described tract, being the centerline intersection of said Zunker

Road and Twin Lane, a 60' public asphalt road;

THENCE South 47°44'39" East, along and with the centerline of said

Twin Lane and southwest line of said 2.471 acre tract of land, a

called 3.552 acre tract of land as described in an instrument to

Kenneth K. Sugawara Jr. and Laura J. Sugawara, recorded under

C.F.N. 2005155829 of the O.P.R. F.B.C.T., a called 2.50 acre tract

of land as described in an instrument to Guidroz Family Living

Trust, recorded under C.F.N. 2009129064 of the O.P.R. F.B.C.T., a

called 1.6273 acre tract of land as described in an instrument to

Benjamin Castillo, recorded under C.F.N. 201709579 of the O.P.R.

F.B.C.T., a called 2.17 acre tract of land as described in an

instrument to James Respondek and wife, Anna Barbara Respondek,

recorded under C.F.N. 79097662 of the O.P.R. F.B.C.T., a called

4.082 acre tract of land as described in an instrument to Bruce

Conrad Stewart Jr. and Bonnie Marie Stewart, recorded under C.F.N.

2021194577 of the O.P.R. F.B.C.T., and a called 1.25 acre tract of

land as described in an instrument to Cheyl Davis, recorded under

C.F.N. 2019138340 of the O.P.R. F.B.C.T., passing a distance of

1831.47 feet for a Mag Nail found, marking the most northerly corner

of said 1.25 acre tract of land, for a total distance of 2632.13

feet to a point, being in the northwest line said 47.72 acre tract

of land and the most easterly corner of said 80 acre tract of land

and herein described tract, from which a 5/8 inch iron rod found,

bears South 47°42'09" East, a distance of 1.84 feet;

THENCE South 41°49'49" West, along and with the northwest line of

said 47.72-acre tract of land, a distance of 1313.93 feet to the

POINT OF BEGINNING and containing a computed 79.5635 acres

(3,465,787 square feet) of land.

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.

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

8017A, Special District Local Laws Code, as added by Section 1 of

this Act, is amended by adding Section 8017A.0308 to read as

follows:

Sec. 8017A.0308. 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 immediately if it receives

a vote of two-thirds of all the members elected

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Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 16, 2025

TO:	Honorable Gary Gates, Chair, House Committee on Land & Resource Management

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB5661 by Gates (Relating to the creation of the Fort Bend County Municipal Utility District No. 286; 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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Frequently Asked Questions

Common questions about HB5661

What does Texas HB5661 do?

HB5661 immediately establishes Fort Bend County Municipal Utility District No. 286, creating a new political subdivision with the power to levy unlimited ad valorem taxes, issue bonds, and exercise eminent domain. Landowners and developers within the defined 177-acre tract must secure a Development Agreement with the City of Rosenberg; without this specific contract, the District is statutorily blocked from holding a confirmation election or issuing bonds.

Who authored HB5661?

HB5661 was authored by Texas Representative Gary Gates during the Regular Session.

When was HB5661 signed into law?

HB5661 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB5661?

HB5661 is enforced by Texas Commission on Environmental Quality (TCEQ), City of Rosenberg (Municipal Consent & Development Agreement) and Texas Transportation Commission (Road project approval if state-maintained).

How urgent is compliance with HB5661?

The compliance urgency for HB5661 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB5661?

The cost impact of HB5661 is estimated as "high". This may vary based on industry and implementation requirements.

What topics does HB5661 address?

HB5661 addresses topics including fort bend county municipal utility district no. 286, 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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