Relating to the boundaries of, and validating certain acts and proceedings of, the Driftwood Conservation District.
LowStandard timeline
Low Cost
Effective:2025-09-01
Enforcing Agencies
Driftwood Conservation District Board of Directors • Texas Commission on Environmental Quality (TCEQ)
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
*Note:* Any real estate transaction closing on or after this date involving the newly included tracts must contain updated district disclosures.
Agency Rulemaking: None.
*Note:* The legislation is self-executing based on the metes and bounds descriptions provided in the bill.
Immediate Action Plan
1.Map the Boundaries: Immediately task surveyors with plotting the Section 1 field notes against your current inventory in the Driftwood area.
2.Update Title Plants: Ensure title databases reflect the new taxing jurisdiction effective September 1, 2025.
3.Audit Pending Closings: Review all open escrows scheduled to close after September 1. If the land is in the new boundary, issue the amended Water Code Notice to Purchaser immediately.
4.Verify Service Agreements: Confirm if the boundary shift triggers new water/wastewater service obligations under existing Utility Service Agreements.
Operational Changes Required
Contracts
Purchase and Sale Agreements (PSAs): You must audit all pending PSAs for land within the Freelove Woody Survey No. 23. If the property is newly included in the District, you must amend the contract to include the statutory Notice to Purchaser required by Texas Water Code § 49.452. Failure to provide this notice prior to closing grants the purchaser the right to terminate the contract.
Lending Agreements: Loan documents for development finance within the added territory must be updated to reflect the District as a taxing authority and potential lienholder.
Hiring/Training
Title Officers & Closing Agents: Staff handling Hays County transactions must be briefed on the new boundary lines. They must verify that tax certificates ordered after September 1, 2025, accurately reflect the District's jurisdiction.
Reporting & Record-Keeping
GIS & Mapping Updates: Surveying departments must overlay the field notes from Section 1 of the bill against current holdings immediately. Do not rely on physical fence lines; the statutory "calculated points" control.
Validation Filing: If your organization holds bonds issued by the District or contracts subject to validity challenges, file a copy of this statute with your permanent records. Section 2 validates past District acts, serving as a legal shield against procedural litigation.
Fees & Costs
Ad Valorem Taxes: Landowners of the newly added tracts will be subject to District taxation. While the 2025 tax liability is likely fixed as of January 1, 2025, budgets for the 2026 tax year must account for this new levy.
Service Fees: Developers must anticipate potential standby fees or tap fees associated with the District’s service area expansion.
Strategic Ambiguities & Considerations
Tax Proration for 2025: The law becomes effective September 1, 2025. Texas property taxes generally attach on January 1. There is ambiguity regarding whether the District can attempt to prorate taxes for the final four months of 2025 on newly added land.
*Guidance:* Prepare for the tax impact to fully hit in the 2026 tax year, but verify proration policies with the Hays County Tax Assessor-Collector immediately upon enactment.
Litigation Carve-Out: The "Validation" clause (Section 2) cures past errors but explicitly excludes matters involved in litigation that is pending on the effective date. If you are currently in a legal dispute with the District, this bill does not automatically moot your case, provided the suit is active on September 1, 2025.
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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.
The bill author has informed the committee that in 2017 the 85th Texas Legislature created the Driftwood Conservation District, which is part of a golf course development in Driftwood in Hays County, that since its creation the district has conducted confirmation, director, and bond elections, and that the district is within the extraterritorial jurisdiction of the City of Dripping Springs. The bill author has also informed the committee that in 2021 the 87th Texas Legislature redefined the district's statutory boundaries to reflect the annexation of approximately 200 acres pursuant to three separate landowner annexation petitions over the course of several years and that the district has since approved the fourth petition in April 2023 for approximately 14 acres and the fifth petition in March 2025 for approximately 90 acres. The bill author has further informed the committee that the City of Dripping Springs has consented to all five annexations but that the district's statutory provisions do not currently reflect the district's boundaries as of the last two annexations. H.B. 5672 seeks to address this issue by changing the district's boundaries in the district's statutory provisions.
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. 5672 amends Chapter 632, Acts of the 85th Legislature, Regular Session, 2017, to change the boundaries of the Driftwood Conservation District.
H.B. 5672 establishes that the legislature validates and confirms all governmental acts, elections, and proceedings of the district that were taken before the bill's effective date. Such validation and confirmation expressly does not apply to any matter that on the bill's effective date:
·is involved in litigation if the litigation ultimately results in the matter being held invalid by a final court judgment; or
·has been held invalid by a final court judgment.
H.B. 5672 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.
Honorable Cody Harris, Chair, House Committee on Natural Resources
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5672 by Zwiener (Relating to the boundaries of, and validating certain acts and proceedings of, the Driftwood Conservation District.), 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 to the district cannot be determined due to the net effect of altering the district boundaries being unknown. No fiscal implication to other units of local government is anticipated.
Source Agencies: b > td >
582 Commission on Environmental Quality
LBB Staff: b > td >
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Related Legislation
Explore more bills from this author and on related topics
HB5672 alters the jurisdictional boundaries of the Driftwood Conservation District in Hays County and validates prior administrative actions to cure potential procedural defects. This legislation strictly impacts real estate developers, title companies, and lenders dealing with specific tracts in the Freelove Woody Survey No. 23, requiring immediate updates to tax disclosures and title commitments to avoid contract voidability.
Q
Who authored HB5672?
HB5672 was authored by Texas Representative Erin Zwiener during the Regular Session.
Q
When was HB5672 signed into law?
HB5672 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB5672?
HB5672 is enforced by Driftwood Conservation District Board of Directors and Texas Commission on Environmental Quality (TCEQ).
Q
How urgent is compliance with HB5672?
The compliance urgency for HB5672 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB5672?
The cost impact of HB5672 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB5672 address?
HB5672 addresses topics including driftwood conservation district, special districts & authorities, special districts & authorities--groundwater conserve dist., special districts & authorities--water & utility and water.
Legislative data provided by LegiScanLast updated: November 25, 2025
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