TexasHB 565189th Legislature Regular SessionHouseWALLET

Relating to the creation of the Montgomery County Water Control and Improvement District No. 7; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Sponsored By: Creighton, Will Metcalf

Became Law

MONTGOMERY COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 7MONTGOMERY COUNTYSpecial Districts & Authorities--Water & UtilitySpecial Districts & Authorities--Water Control Improve Dist.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 5 benefits, 1 costs, 1 mixed.

District cannot take owners' private property

The district cannot use eminent domain to take private property for its projects. This ban also covers land outside district boundaries for roads or recreation facilities. Other entities keep any separate eminent-domain authority they have.

Voters and caps limit district road debt

Road bonds paid with property taxes need approval from two-thirds of district voters who cast ballots. Total principal for road bonds and other road obligations paid with property taxes cannot exceed 25% of assessed district real-property value. This cap applies when the debt is issued. These limits restrict borrowing but do not set an individual property's tax bill.

District can build roads and drainage

The district can build, finance, improve, operate, and maintain roads and related storm drainage. It can transfer roads to Texas, a county, or a city for operation and maintenance. Road projects must meet city construction and land-use rules within city limits or nearby areas under city authority. County rules apply outside those areas. The Texas Transportation Commission must approve plans and specifications when Texas will operate and maintain the road.

District residents elect five local directors

The district has five elected directors serving staggered four-year terms, with an election required to confirm its creation. Each municipality covering district land through city limits or nearby city authority must consent before that election. Owners representing a majority of assessed real-property value can ask the Texas Commission on Environmental Quality to appoint temporary directors. Those directors serve until permanent directors are elected or the fourth anniversary of the law's effective date, whichever comes first. If permanent directors remain unelected, majority-value owners can petition for replacement temporary directors.

New Montgomery County district can build infrastructure

Beginning September 1, 2025, the law creates Montgomery County Water Control and Improvement District No. 7, covering 480.79 acres. The district can handle wastewater, stormwater, and harmful excess water using powers available to Texas water districts. It can also develop recreation facilities and issue bonds for them under state water law. Overlapping local governments keep their own recreation powers. The law does not promise a specific project or service level.

District operating and contract taxes need votes

The district can tax taxable property for operating and maintenance costs only after voters approve the tax. The board cannot set that rate above the voter-approved rate. A separate tax can fund contract payments after a majority of voters casting ballots approve the contract. That contract may let the board change its terms later without another vote. The law sets no household bill amount or contract-tax rate.

District borrowing carries possible property tax costs

The district can borrow for authorized projects using property taxes, impact fees, revenue, contract payments, grants, or other district money. Voters must approve before the district imposes property taxes or issues property-tax-backed bonds. Bonds backed by non-property-tax revenue or qualifying contract payments need no election. Property-tax-backed bonds require an annual property tax with no limit on its rate or amount while any bonds remain unpaid. The law sets no bond amount or household tax bill.

Sponsors & Cosponsors

Sponsors

  • Creighton

    Affiliation unavailable

  • Will Metcalf

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 18 • No: 0

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

House vote • 5/10/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Natural Resources

Yes: 12 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • No: 0 • Other: 1

Actions Timeline

  1. See remarks for effective date

    6/20/2025House
  2. Filed without the Governor's signature

    6/20/2025House
  3. Sent to the Governor

    5/31/2025House
  4. Signed in the Senate

    5/31/2025Senate
  5. Signed in the House

    5/30/2025House
  6. Reported enrolled

    5/30/2025House
  7. Senate passage reported

    5/29/2025House
  8. Record vote

    5/28/2025Senate
  9. Passed

    5/28/2025Senate
  10. Read 3rd time

    5/28/2025Senate
  11. Record vote

    5/28/2025Senate
  12. Three day rule suspended

    5/28/2025Senate
  13. Vote recorded in Journal

    5/28/2025Senate
  14. Read 2nd time & passed to 3rd reading

    5/28/2025Senate
  15. Laid before the Senate

    5/28/2025Senate
  16. Placed on local & uncontested calendar

    5/28/2025Senate
  17. Committee report printed and distributed

    5/22/2025Senate
  18. Recommended for local & uncontested calendar

    5/22/2025Senate
  19. Reported favorably w/o amendments

    5/22/2025Senate
  20. Vote taken in committee

    5/22/2025Senate
  21. Considered in public hearing

    5/22/2025Senate
  22. Scheduled for public hearing on . . .

    5/22/2025Senate
  23. Posting rule suspended

    5/22/2025Senate
  24. Referred to Local Government

    5/21/2025Senate
  25. Read first time

    5/21/2025Senate

Bill Text

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