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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
HB5668

Regular Session

Relating to the powers and duties of the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties; providing authority to impose a tax and issue bonds.

Government Affairs & Regulatory Compliance Analysis

HB5668: Government Affairs Overview

HB5668 authorizes Far North Fort Worth Municipal Utility District No. 1 (Tarrant and Wise Counties) to designate "defined areas" within its boundaries to impose additional taxes and issue separate bonds. This creates a tiered taxation structure; developers and landowners within this District must now verify if specific parcels are subject to higher tax rates than the general District rate to avoid closing delays and statutory disclosure violations.

Rep. David Spiller·House Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

Far North Fort Worth Municipal Utility District No. 1 • Texas Commission on Environmental Quality

Business Impact

Who HB5668 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

💧

Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Closing Officers: Title review protocols must be updated to flag tax certificates that show differential rates within the same MUD.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB5668
Relating to the powers and duties of the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties; providing authority to im...
Low Urgency
Heavily Contested
House Vote82 - 46
YEA
NAY
64% in favor128 voting
Senate Vote27 - 4
YEA
87% in favor31 voting
50
Total Opposition Votes
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Far North Fort Worth Municipal U...Texas Commission on Environmenta...
Primary Author: Rep. David Spiller
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025 (All real estate contracts executed on or after this date must reflect accurate tax disclosures).
  • Agency Rulemaking: No state-level rulemaking required. However, the District Board of Directors will adopt orders designating defined areas on a case-by-case basis.

Immediate Action Plan

  • Audit Land Holdings: Immediately map all assets in Tarrant and Wise Counties against the boundaries of Far North Fort Worth MUD No. 1.
  • Update PSA Templates: Draft a specialized "Notice to Purchaser" for this jurisdiction that includes placeholders for "Defined Area" tax rates.
  • Flag Title Systems: Instruct title partners to verify "Defined Area" status on all tax certificates for this MUD starting September 1, 2025.
  • Monitor Board Dockets: Assign a government affairs representative to review MUD Board agendas for "designation of defined areas" or "bond elections for defined areas."

Operational Changes Required

Contracts

  • Purchase and Sale Agreements (PSAs): You must amend the statutory "Notice to Purchaser" (Texas Water Code § 49.452) for transactions in this District. Standard templates citing the general District tax rate are legally insufficient if the property sits within a "defined area." You must disclose the *specific* defined area tax rate and bonding authority.
  • Reimbursement Agreements: Developers petitioning for defined areas must restructure agreements to ensure reimbursement is tied specifically to bond proceeds from that defined area, not general District funds.

Hiring/Training

  • Land Acquisition Teams: Train staff to identify "Far North Fort Worth MUD No. 1" immediately during site selection. They must query whether the target tract is part of a "defined area" or if the seller has a petition pending.
  • Closing Officers: Title review protocols must be updated to flag tax certificates that show differential rates within the same MUD.

Reporting & Record-Keeping

  • Board Minutes Monitoring: You must track District Board meeting minutes for public hearings regarding the creation of defined areas. This is your only early warning system for potential tax hikes on your inventory.
  • Tax Certificates: Ensure tax certificates explicitly state the rate for the *specific parcel*, not just the general jurisdiction.

Fees & Costs

  • Variable Tax Liability: There is no fixed fee increase. The cost impact is the potential for a significantly higher ad valorem tax rate on specific parcels to fund localized infrastructure (roads, drainage) that benefits that specific area.

Strategic Ambiguities & Considerations

  • "Primarily Benefit" Standard: The law allows the District to tax a defined area for improvements that "primarily benefit" that area. This is subjective. The District may attempt to classify general infrastructure projects as "primarily benefiting" a commercial zone to justify higher taxes on business assets.
  • Noncontiguous Tracts: The District may form a defined area from noncontiguous tracts. You cannot assume your property is safe from a new taxing layer simply because it does not border an area currently under development.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Apr 9, 2025
Passed House
May 10, 2025
Passed Senate
May 22, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsFar North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise CountiesSpecial Districts & AuthoritiesSpecial Districts & Authorities--municipal Utility DistrictsSpecial Districts & Authorities--water & UtilityTarrant CountyWise County
03

House Authors

Rep. David SpillerRepublican · Primary Author

Senate Sponsor

Sen. Tan ParkerRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. David Spiller

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Related by Topic

View more Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties legislation
Quick Reference

Frequently Asked Questions

Common questions about HB5668

Q

What does Texas HB5668 do?

HB5668 authorizes Far North Fort Worth Municipal Utility District No. 1 (Tarrant and Wise Counties) to designate "defined areas" within its boundaries to impose additional taxes and issue separate bonds. This creates a tiered taxation structure; developers and landowners within this District must now verify if specific parcels are subject to higher tax rates than the general District rate to avoid closing delays and statutory disclosure violations.

Q

Who authored HB5668?

HB5668 was authored by Texas Representative David Spiller during the Regular Session.

Q

When was HB5668 signed into law?

HB5668 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB5668?

HB5668 is enforced by Far North Fort Worth Municipal Utility District No. 1 and Texas Commission on Environmental Quality.

Q

How significant are the changes in HB5668?

The regulatory priority for HB5668 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB5668?

The cost impact of HB5668 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB5668 address?

HB5668 addresses topics including far north fort worth municipal utility district no. 1 of tarrant and wise counties, special districts & authorities, special districts & authorities--municipal utility districts, special districts & authorities--water & utility and tarrant county.

Q

What are the key dates for HB5668?

Key dates for HB5668: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

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.

Legislative data provided by LegiScanLast updated: January 11, 2026