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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
HB5672

Regular Session

Relating to the boundaries of, and validating certain acts and proceedings of, the Driftwood Conservation District.

Government Affairs & Regulatory Compliance Analysis

HB5672: Government Affairs Overview

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.

Rep. Erin Zwiener·House Bill·Regular Session

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

Driftwood Conservation District Board of Directors • Texas Commission on Environmental Quality (TCEQ)

Business Impact

Who HB5672 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

  • 1Lending Agreements: Loan documents for development finance within the added territory must be updated to reflect the District as a taxing authority and potential lienholder.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB5672
Relating to the boundaries of, and validating certain acts and proceedings of, the Driftwood Conservation District.
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
Driftwood Conservation District ...TCEQ
Primary Author: Rep. Erin Zwiener
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
  • *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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Apr 14, 2025
Passed House
May 10, 2025
Passed Senate
May 28, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsDriftwood Conservation DistrictSpecial Districts & AuthoritiesSpecial Districts & Authorities--groundwater Conserve Dist.Special Districts & Authorities--water & UtilityWaterWater--conservation
03

House Authors

Rep. Erin ZwienerDemocrat · Primary Author

Senate Sponsor

Sen. Donna CampbellRepublican · Primary Sponsor

Bill Text(with markup)

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Related by Topic

View more Driftwood Conservation District legislation
Quick Reference

Frequently Asked Questions

Common questions about HB5672

Q

What does Texas HB5672 do?

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 significant are the changes in HB5672?

The regulatory priority for HB5672 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

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.

Q

What are the key dates for HB5672?

Key dates for HB5672: 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