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HB 5656

Relating to the creation of the Fort Bend County Municipal Utility District No. 263; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

89th Legislature (2025) Introduced by Lois Kolkhorst and 1 co-sponsor

Bill creates new Fort Bend County water utility district with power to tax, assess fees, issue bonds, and use eminent domain for infrastructure projects.

Effective immediately
#bonds(s6060) #environmentalquality #texascommissionon(v0334) #fortbendcountymunicipalutilitydistrictno.263(dc9ev) #specialdistricts&authorities--municipalutilitydistricts(i0009) #specialdistricts&authorities--water&utility(i0755) #taxation--general(i0815)
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Bill Summary · HB 5656

Legislative bill overview

HB 5656 creates Fort Bend County Municipal Utility District No. 263, a new special-purpose government entity authorized to provide water, wastewater, and related infrastructure services to a defined area. The bill grants this district limited eminent domain powers to acquire necessary property and authority to issue bonds, impose assessments, fees, and taxes to fund its operations and capital projects.

Why is this important

Municipal utility districts are common mechanisms for financing and managing infrastructure in rapidly developing areas, allowing communities to fund water systems without relying solely on county or city budgets. This new district will have direct taxing authority over property owners in its service area, making it a significant governance and financial entity affecting residents' property taxes and utility costs.

Potential points of contention

  • Eminent domain concerns: The "limited power of eminent domain" could allow forced property acquisition for infrastructure projects, raising questions about property rights protections and fair compensation standards
  • Taxation authority: Residents in the district's service area will be subject to new assessments, fees, and taxes without necessarily having voted on the district's creation, which some may view as taxation without direct democratic input
  • Bond debt: Authority to issue bonds means the district can accumulate long-term debt obligations that will burden property taxpayers for decades, potentially affecting property values and affordability

Compiled from official sources — confirm details with the bill’s official record.

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