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HB 5652

Relating to the creation of the Montgomery County Municipal Utility District No. 258; 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 Brandon Creighton and 1 co-sponsor

Texas creates Montgomery County MUD No. 258, authorizing a new special utility district to provide water/wastewater services, levy taxes, and use limited eminent domain in the area.

Effective immediately
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Bill Summary · HB 5652

Legislative bill overview

HB 5652 establishes Montgomery County Municipal Utility District No. 258, a new special purpose district authorized to provide water, wastewater, and drainage services to a defined area in Montgomery County. The bill grants this district standard powers including limited eminent domain authority, the ability to issue bonds for infrastructure, and the power to impose assessments, fees, and taxes on properties within its jurisdiction.

Why is this important

Municipal utility districts (MUDs) are critical infrastructure providers in Texas's rapid-growth areas, particularly around Houston. This new district will enable water and wastewater service expansion to an underserved area, though it also creates a new taxing entity with the power to assess property owners. The effective date of June 20, 2025, means the district can immediately begin operations and levy charges.

Potential points of contention

  • Tax burden on property owners: Landowners within the district boundaries automatically become subject to assessments and taxes without necessarily voting on the district's creation, which is standard MUD practice but generates ongoing debate about consent and transparency
  • Eminent domain authority: The limited power to seize private property for utility infrastructure, while typical for MUDs, raises concerns about property rights and compensation procedures
  • Bond issuance and debt: The district's authority to issue bonds creates potential long-term financial obligations for residents and property owners who may have limited say in debt decisions

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

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