Regular Session
Texas Commission on Environmental Quality (TCEQ) • Parker County Commissioners Court • Texas Transportation Commission (regarding state road specifications)
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BILL ANALYSIS |
| H.B. 5679 |
| By: Geren |
| 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 Parker County for the benefit of certain undeveloped land. H.B. 5679 seeks to provide for the creation of the Hills of Walnut Creek Municipal Utility District of Parker County.
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| 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.
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| 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.
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| ANALYSIS H.B. 5679 amends the Special District Local Laws Code to create the Hills of Walnut Creek Municipal Utility District of Parker County, 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. 5679 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.
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| EFFECTIVE DATE On passage, or, if the bill does not receive the necessary vote, September 1, 2025.
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| H.B. No. 5679 | ||
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| relating to the creation of the Hills of Walnut Creek Municipal | ||
| Utility District of Parker County; 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 7897 to read as follows: | ||
| CHAPTER 7897. HILLS OF WALNUT CREEK MUNICIPAL UTILITY DISTRICT OF | ||
| PARKER COUNTY | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 7897.0101. 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 Hills of Walnut Creek | ||
| Municipal Utility District of Parker County. | ||
| Sec. 7897.0102. NATURE OF DISTRICT. The district is a | ||
| municipal utility district created under Section 59, Article XVI, | ||
| Texas Constitution. | ||
| Sec. 7897.0103. 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. 7897.0104. CONSENT OF MUNICIPALITY REQUIRED. The | ||
| temporary directors may not hold an election under Section | ||
| 7897.0103 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. 7897.0105. 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. 7897.0106. 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. 7897.0201. GOVERNING BODY; TERMS. (a) The district is | ||
| governed by a board of five elected directors. | ||
| (b) Except as provided by Section 7897.0202, directors | ||
| serve staggered four-year terms. | ||
| Sec. 7897.0202. TEMPORARY DIRECTORS. (a) On or after the | ||
| effective date of the Act enacting this chapter, 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 temporary directors the five persons | ||
| named in the petition. The commission shall appoint as temporary | ||
| directors the five persons named in the petition. | ||
| (b) Temporary directors serve until the earlier of: | ||
| (1) the date permanent directors are elected under | ||
| Section 7897.0103; or | ||
| (2) the fourth anniversary of the effective date of | ||
| the Act enacting this chapter. | ||
| (c) If permanent directors have not been elected under | ||
| Section 7897.0103 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 7897.0103; 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. 7897.0301. GENERAL POWERS AND DUTIES. The district | ||
| has the powers and duties necessary to accomplish the purposes for | ||
| which the district is created. | ||
| Sec. 7897.0302. 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. 7897.0303. 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. 7897.0304. 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. | ||
| (c) If the state will maintain and operate the road, the | ||
| Texas Transportation Commission must approve the plans and | ||
| specifications of the road project. | ||
| Sec. 7897.0305. 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. 7897.0306. 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. 7897.0401. 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 7897.0403. | ||
| (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. | ||
| (c) The district may not issue bonds payable from ad valorem | ||
| 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. 7897.0402. OPERATION AND MAINTENANCE TAX. (a) If | ||
| authorized at an election held under Section 7897.0401, 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. 7897.0403. 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. 7897.0501. 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. 7897.0502. 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. 7897.0503. 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 Hills of Walnut Creek Municipal Utility | ||
| District of Parker County initially includes all the territory | ||
| contained in the following area: | ||
| BEING a tract of land situated in the G. Clifton Survey, Abstract | ||
| Number 1942, the T. & P. Railroad Company Survey, Abstract Number | ||
| 1421, the W. Hall Survey, Abstract Number 2123, the R. Wright | ||
| Survey, Abstract Number 1636, the C. Gildon Survey, Abstract Number | ||
| 523, the J. Wimbley Survey, Abstract Number 1612, and the T. & P. | ||
| Railroad Company Survey, Abstract Number 1377, Parker County, | ||
| Texas, being a portion of that tract of land described by deed to | ||
| MITX, LTD., Wells Reno Investors, LTD., and White Reno Investors, | ||
| LTD., recorded in Volume 2154, Page 1607, County Records, Parker | ||
| County, Texas, and being more particularly described by metes and | ||
| bounds as follows: | ||
| BEGINNING at the most westerly southwest corner of said MITX, | ||
| Wells, and White tract, the northwest corner of that tract of land | ||
| described by deed to Jesus R. Medina, et ux., recorded in Volume | ||
| 2476, Page 1703, said County Records, and the east right-of-way | ||
| line of S. Reno Road (F.M. 1542, a variable width right-of-way); | ||
| THENCE N 00°16'43"E, 1314.90 feet, to the most westerly northwest | ||
| corner of said MITX, Wells, and White tract; | ||
| THENCE N 89°44'15"E, 1425.34 feet, to the southeast corner of that | ||
| tract of land described by deed to Barney and Shirley Stanford, | ||
| recorded in Volume 1155, Page 225 and the southwest corner of that | ||
| tract of land described by deed to Georgie Ann Morrow, recorded in | ||
| Instrument Number 201401446, both of said County Records; | ||
| THENCE N 89°18'15"E, 2101.36 feet, to the southeast corner of said | ||
| Georgie Morrow tract and the southwest corner of that tract of land | ||
| described by deed to Johnny F. Morrow, recorded in Volume 1720, Page | ||
| 1798, said County Records; | ||
| THENCE N 89°45'38"E, 1692.96 feet, to the southeast corner of said | ||
| Johnny Morrow tract and an "ell" corner in the north line of said | ||
| MITX, Wells, and White tract; | ||
| THENCE N 00°13'36"W, 2251.38 feet, with the east line of said Johnny | ||
| Morrow tract and the approximate centerline of Walnut Creek; | ||
| THENCE with said centerline, the following bearings and distances: | ||
| S 47°38'48"E, 471.49 feet; | ||
| S 58°04'22"E, 155.77 feet; | ||
| S 66°39'46"E, 575.57 feet; | ||
| S 76°47'59"E, 160.75 feet; | ||
| N 85°32'30"E, 458.61 feet; | ||
| N 89°02'03"E, 199.40 feet; | ||
| S 76°13'41"E, 149.22 feet; | ||
| S 46°16'57"E, 152.45 feet; | ||
| S 25°11'46"E, 264.45 feet; | ||
| S 61°54'17"E, 236.98 feet; | ||
| S 80°32'04"E, 318.93 feet; | ||
| S 51°50'03"E, 470.97 feet; | ||
| N 83°46'19"E, 235.80 feet; | ||
| S 83°31'07"E, 206.49 feet; | ||
| S 88°41'18"E, 339.09 feet; | ||
| S 66°11'45"E, 321.05 feet, to the northeast corner of said | ||
| MITX, Wells, and White tract and the west line of that tract | ||
| of land described by deed to Charles and Carolyn Sonnenburg, | ||
| recorded in Volume 1002, Page 163, said County Records; | ||
| THENCE with the east line of said MITX, Wells, and White tract, the | ||
| following bearings and distances: | ||
| S 00°10'25"E, 2058.07 feet, to the southwest corner of that | ||
| tract of land described by deed to Jose J. Clemente, recorded | ||
| in Instrument Number 201711878, all of said County | ||
| Records; | ||
| S 00°18'39"E, 1192.13 feet, to the most easterly southeast | ||
| corner of said MITX, Wells, and White tract; | ||
| S 89°27'00"W, 1519.03 feet, to an "ell" corner in said east | ||
| line and the northwest corner of Lot 1, Jackson Trail | ||
| Estates, an addition to Parker County, Texas, by plat | ||
| recorded in Volume 363-A, Page 33, said County Records; | ||
| THENCE S 89°41'12"W, 2649.54 feet, over and across said MITX, Wells, | ||
| and White tract; | ||
| THENCE S 00°57'03"E, 901.92 feet, continuing over and across said | ||
| MITX, Wells, and White tract, to an "ell" corner in the west line of | ||
| said MITX, Wells, and White tract and the northeast corner of Lot 1 | ||
| Pearson Crossing, an addition to Parker County, Texas, by plat | ||
| recorded in Cabinet B, Slide 548, said County Records; | ||
| THENCE with said west line, the following bearings and distances: | ||
| S 89°37'15"W, 1324.85 feet, to the northwest corner of Lot 7, | ||
| said Pearson Crossing and the northeast corner of that tract | ||
| of land described by deed to Everardo D. Ramirez, LLC, | ||
| recorded in Instrument Number 202042879, said County | ||
| Records; | ||
| S 89°51'18"W, 670.75 feet, to the northwest corner of that | ||
| tract of land described by deed to RBBR Enterprises, Inc., | ||
| recorded in Instrument Number 201703769 and the east line of | ||
| that tract of land described by deed to Terry Lee and Eva Joan | ||
| Benton, recorded in Volume 1775, Page 1572, both of said | ||
| County Records; | ||
| N 00°16'37"W, 901.42 feet, to the northeast corner of said | ||
| Benton tract; | ||
| N 89°29'00"W, 624.44 feet, to the southeast corner of that | ||
| tract of land described by deed to Clyda Sue Johnson, | ||
| recorded in Instrument Number 202012870, said County | ||
| Records; | ||
| N 00°38'10"W, 1314.40 feet, to the northeast corner of said | ||
| Johnson tract; | ||
| THENCE S 89°08'05"W, 2593.70 feet, to the Point of Beginning and | ||
| containing 28,443,549 square feet or 652.974 acres of land more or | ||
| less. | ||
| 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. | ||
| (c) The Texas Commission on Environmental Quality has filed | ||
| 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 | ||
| 7897, Special District Local Laws Code, as added by Section 1 of | ||
| this Act, is amended by adding Section 7897.0307 to read as follows: | ||
| Sec. 7897.0307. 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 to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2025. | ||
| TO: | Honorable Gary Gates, Chair, House Committee on Land & Resource Management |
| FROM: | Jerry McGinty, Director, Legislative Budget Board |
| IN RE: | HB5679 by Geren (Relating to the creation of the Hills of Walnut Creek Municipal Utility District of Parker County; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.), As Introduced |
| Source Agencies: |
| LBB Staff: | JMc, SZ, BC, CWi |
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Common questions about HB5679
HB5679 establishes the Hills of Walnut Creek Municipal Utility District in Parker County, effective September 1, 2025. Crucially, the legislation failed to secure the two-thirds vote required for immediate effect, triggering a statutory prohibition on the District’s use of eminent domain. Developers and landowners must immediately adjust infrastructure reimbursement models to account for voluntary land acquisition and restricted road bond capacities.
HB5679 was authored by Texas Representative Charlie Geren during the Regular Session.
HB5679 was signed into law by Governor Greg Abbott on June 20, 2025.
HB5679 is enforced by Texas Commission on Environmental Quality (TCEQ), Parker County Commissioners Court and Texas Transportation Commission (regarding state road specifications).
The compliance urgency for HB5679 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
The cost impact of HB5679 is estimated as "low". This may vary based on industry and implementation requirements.
HB5679 addresses topics including hills of walnut creek municipal utility district of parker county, special districts & authorities, special districts & authorities--municipal utility districts, special districts & authorities--water & utility and parker county.
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