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.

ModeratePlan for compliance

Low Cost

Effective:2025-06-20

Enforcing Agencies

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

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.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

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.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsWaller County Municipal Utility District No. 70 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

H.B. 5665

By: Kitzman

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 Waller County for the benefit of certain undeveloped land. H.B. 5665 seeks to provide for the creation of the Waller County Municipal Utility District No. 70.

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

H.B. 5665 amends the Special District Local Laws Code to create the Waller County Municipal Utility District No. 70, 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. 5665 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.

House Authors

Rep. Stan KitzmanRepublican · Primary Author

Senate Sponsor

Sen. Lois KolkhorstRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 5665

AN ACT

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.

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 8019A to read as follows:

CHAPTER 8019A. WALLER COUNTY MUNICIPAL UTILITY DISTRICT NO. 70

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8019A.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 Waller County Municipal

Utility District No. 70.

Sec. 8019A.0102. NATURE OF DISTRICT. The district is a

municipal utility district created under Section 59, Article XVI,

Texas Constitution.

Sec. 8019A.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. 8019A.0104. CONSENT OF MUNICIPALITY REQUIRED. The

temporary directors may not hold an election under Section

8019A.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. 8019A.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. 8019A.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. 8019A.0201. GOVERNING BODY; TERMS. (a) The district

is governed by a board of five elected directors.

(b) Except as provided by Section 8019A.0202, directors

serve staggered four-year terms.

Sec. 8019A.0202. TEMPORARY DIRECTORS. (a) The temporary

board consists of:

(1) Lisa Angell;

(2) Josh Bouquet;

(3) Tyler Nunez;

(4) Steven Tennis; and

(5) Courtney Wilcox.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under

Section 8019A.0103; or

(2) the fourth anniversary of the effective date of

the Act enacting this chapter.

Section 8019A.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 8019A.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. 8019A.0301. GENERAL POWERS AND DUTIES. The district

has the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 8019A.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. 8019A.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. 8019A.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. 8019A.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. 8019A.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. 8019A.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

8019A.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.

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. 8019A.0402. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8019A.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. 8019A.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. 8019A.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. 8019A.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. 8019A.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 Waller County Municipal Utility District

No. 70 initially includes all the territory contained in the

following area:

FIELD NOTES FOR A 209.7636 ACRE TRACT OF LAND OUT OF A

253.5235 ACRE TRACT OF LAND CONTAINING A 26.3883 ACRE TRACT

(RESIDUE OF TRACT 2 BEING CALLED 126.655 ACRES IN VOLUME 880, PAGE

482 OFFICIAL PUBLIC RECORDS) & A 27.1352 ACRE TRACT OF LAND BEING

MADE UP OF A 126.640 ACRE TRACT (CALLED TRACT 1 IN VOLUME 880, PAGE

482 OFFICIAL PUBLIC RECORDS) AND A PORTION OF THE 126.655 ACRE TRACT

(CALLED TRACT 2 IN VOLUME 880, PAGE 482 OFFICIAL PUBLIC RECORDS)

BEING LOCATED IN THE ISAAC DONOHO SURVEY, ABSTRACT 121 AND THE JAMES

BAKER SURVEY, ABSTRACT 11, WALLER COUNTY, TEXAS.

BEGINNING: At a 1/2 inch iron rod found in the East

right-of-way line of Blumberg Road (80 foot width as fenced) for the

Northwest corner of both the herein described tract and of the above

called Tract 1, said point being the Southwest corner of a 5.000

acre tract (Volume 1379, Page 546 Official Public Records);

THENCE: North 86 ° 53' 00" East with the North line of the

herein described tract and the South line of the 5.000 acre tract

and the South line of the residue of a 30.000 acre tract (Volume

562, Page 921 Official Public Records) passing 2 streams at a

distance of 3085.14 feet passing a 1/2 inch iron rod found for

reference and continuing on for a total distance of 3185 .14 feet to

a point in the center line of Clear Creek for the Northeast corner

of the herein described tract and the Southeast corner of the

residue of the 30.000 acre tract;

THENCE: With the center line of Clear Creek for the East line

of the herein described tract the following:

South 05 ° 28' 17" East a distance of 44.69 feet to a point;

South 57 ° 31' 1 O" West a distance of 84.62 feet to a point;

South 49 ° 14' 55" West a distance of 107.95 feet to a point;

South 05 ° 19' 51" East a distance of 139 .80 feet to a point;

South 53 ° 56' 03" East a distance of213.96 feet to a point;

South 04 ° 42' 16" West a distance of 102.65 feet to a point;

South 75 ° 35' 31" West a distance of 134.71 feet to a point;

South 82 ° 11' 12" West a distance of 146.83 feet to a point;

South 15 ° 25' 09" West a distance of 178.19 feet to a point;

South 77 ° 12' 16" West a distance of284.71 feet to a point;

South 14 ° 32' 02" West a distance of 186.43 feet to a point;

South 07 ° 51' 23" West a distance of291.98 feet to a point;

South 21 ° 43' 27" East a distance of 280.63 feet to a point;

South 76 ° 34' 55" East a distance of 131.62 feet to a point;

South 05 ° 17' 05" West a distance of 148.32 feet to a point;

South 64 ° 13' 49" West a distance of 95.23 feet to a point;

South 08 ° 46' 16" East a distance of 290.01 feet to a point;

North 83 ° 17' 03" West a distance of 94.83 feet to a point;

South 51 ° 09' 45" West a distance of 48.57 feet to a point;

South 22 ° 38' 08 11 East a distance of 82.86 feet to a point;

South 47 ° 06' 35" West a distance of 174.53 feet to a point;

South 70 ° 26' 44 11 West a distance of 323.06 feet to a point;

South 03 ° 25' 46 11 East a distance of 104.56 feet to a point;

South 73 ° 58' 49 11 West a distance of 82.53 feet to a point;

South 10 ° 00' 14" West a distance of 149.56 feet to a point;

South 31 ° 36' l 8 11 West a distance of 134.30 feet to a point;

South 30 ° 42' 52 11 East a distance of 193.08 feet to a point;

South 68 ° 06' 52 11 West a distance of 232.04 feet to a point;

South 14 ° 49' 27" West a distance of232.91 feet to a point;

South 05 ° 27' 43 11 East a distance of 223.66 feet to a point;

South 23 ° 20' 42" West a distance of 108.18 feet to a point;

South 09 ° 19' 58 11 East a distance of 220.50 feet to a point;

South 83 ° 24' 4 3" East a distance of 129. 70 feet to a point;

South 10 ° 4 7' 06" East a distance of 212.48 feet to a point

for the Southeast corner of the herein described tract and a

Northeast corner of a called 148.446 acre tract (Volume 569 , Page

202 Official Public Records);

THENCE: South 86 ° 03' 40" West at a distance of 100.00 feet

passing a 1/2 inch iron rod found for reference, continuing on for a

total distance of 1552.29 feet to a 30 inch tree found being the

called deed corner of the 148.446 acre tract for a Southwest corner

of the herein described tract, from said point a concrete monument

found bears South 87 ° 42' 40 11 West a distance of 8.58 feet;

THENCE: North 03 ° 33' 20" West a distance of 1155.65 feet with

the common line of this tract and the 148.446 acre tract to a

concrete monument found for a Northeast corner of the 148.446 acre

tract and an angle point for a West line of the herein described

tract and being the Southeast corner of the residue of the above

253.5235 acre tract;

THENCE: North 03 ° 20' 21 11 West a distance of 134.02 feet

with the West line of the Donoho Survey, Abstract 121 and the East

line of the Baker Survey, Abstract 11, to a 1/2 inch iron rod set for

an interior corner of this tract;

THENCE: North 16 ° 34' 51" West a distance of 1227.60 feet to

a1/2 inch iron rod set for an interior corner of this tract and the

Northeast corner of the residue of the above 253.5235 acre tract;

THENCE: With the common line of this tract and the residue of

the above 253.5235 acre tract the following:

With a curve to the right having a radius of 696.00 feet, a

length of 344.41 feet with a chord bearing of North 72 ° 20' 50" West

a distance of 340.91 feet to a1/2 inch iron rod set at the end of

said curve;

North 58° 10' 16" West a distance of 247.63 feet to a1/2 inch

iron rod set at the beginning of a curve to the left;

With a curve to the left having a radius of 9.00 feet, a

length of 13.92 feet with a chord bearing of South 77° 30' 31" West

with a distance of 12.58 feet to a1/2 inch iron rod set at the end of

said curve;

North 57° 41' 35" West a distance of 16.00 feet to a 1/2 inch

iron rod set in the East line of Blumberg Road for the Westernmost

Southwest corner of the herein described tract and the Northwest

corner of the residue of the above 253.5235 acre tract;

THENCE: With the Southeast line of Blumberg Road and the West

line of the herein described tract the following:

North 33° 11' 18" East a distance of 125.07 feet to a 1/2 inch

iron rod found;

With a curve to the left having a radius of 2730.26 feet, a

length of 697.42 feet with a chord bearing of North 25° 32' 07'' East

and a distance of 695.53 feet to a 1/2 inch iron rod found;

North 18° 31' 13" East a distance of 530.28 feet to the PLACE

OF BEGINNING and containing 209.7636 acres of land.

All bearings recited hereon are based GPS observation, Texas

South-Central Zone.

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

8019A, Special District Local Laws Code, as added by Section 1 of

this Act, is amended by adding Section 8019A.0307 to read as

follows:

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

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:	HB5665 by Kitzman (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.), 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

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about HB5665

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.

Who authored HB5665?

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

When was HB5665 signed into law?

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

Which agencies enforce HB5665?

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

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.

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.

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

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.