All Roll Calls
Yes: 161 • No: 0
TexasHB 565689th Legislature Regular SessionHouseWALLET
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.
Sponsored By: Lois Kolkhorst (Republican), Suleman Lalani
Became Law
FORT BEND COUNTY MUNICIPAL UTILITY DISTRICT NO. 263Special Districts & Authorities--Municipal Utility DistrictsSpecial Districts & Authorities--Water & UtilityTaxation--GeneralBONDSENVIRONMENTAL QUALITY, TEXAS COMMISSION ON
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 2 benefits, 2 costs, 2 mixed.
District property-taking power has voting limits
Beginning September 1, 2025, the law bars the district from taking property through eminent domain unless the act received the required legislative vote. That threshold is two-thirds of all elected members in each legislative house, not a district voter election. The act also provides immediate effect with that legislative vote; otherwise, its effective date is September 1, 2025.
District gains road and drainage powers
The district can design, acquire, build, finance, improve, operate, and maintain paved or gravel roads and related storm drainage. It can transfer these facilities to the state, county, or a city for operation and maintenance. Projects within city limits or a city's extended jurisdiction must meet applicable city construction and land-use rules. County rules apply outside those areas. The Texas Transportation Commission must approve plans and specifications for roads the state will operate and maintain.
District contract taxes require voter approval
The district can impose a separate tax to pay contracts after a majority of district voters voting approves the contract terms. The board can later change the contract without another vote only when the voter-approved contract allows it. The law sets no tax rate or household payment.
District owners face voter-approved upkeep taxes
The district can tax taxable property for operations and maintenance after voters approve the tax. The board sets the rate, but cannot exceed the voter-approved rate. The law sets no tax rate or household bill.
District debt carries taxes and safeguards
The district can issue debt for authorized purposes, repaid through property taxes, impact fees, revenue, contract payments, grants, or other district money. Property taxes and property-tax-backed bonds require voter approval; tax-backed road bonds need two-thirds approval among district voters who vote. Debt backed by revenue other than property taxes, or by specified contract payments, needs no election. For bonds backed wholly or partly by property taxes, the district must provide an annual tax without a rate or amount limit until repayment. Total property-tax-backed road debt cannot exceed 25% of the district's assessed real estate value when issued.
New utility district in Fort Bend
The law creates Fort Bend County Municipal Utility District No. 263 for water, wastewater, drainage, and related services. Its four tracts cover about 1,616 acres: 721.9, 812.1, 79.97, and 3.019 acres. The district can charge fees and assessments and use other financing allowed by law. Five directors serve staggered four-year terms under Texas Commission on Environmental Quality oversight. Owners of a majority of assessed property value can petition the commission to appoint five temporary directors. They serve until permanent directors are elected or the law's fourth anniversary, with successor temporary appointments allowed. Temporary directors must hold an election to confirm creation and elect permanent directors, after each overlapping municipality formally consents. The district must follow applicable municipal consent conditions; districts formed by dividing it inherit its powers and duties.
Sponsors & Cosponsors
Sponsors
Lois Kolkhorst
Republican • Senate
Suleman Lalani
House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/28/2025
Record vote
Yes: 0 • No: 0
Senate vote • 5/28/2025
Record vote
Yes: 0 • No: 0
House vote • 5/7/2025
Record vote
Yes: 148 • No: 0
House vote • Unknown
Committee vote: Land & Resource Management
Yes: 7 • No: 0
Senate vote • Unknown
Committee vote: Local Government
Yes: 6 • No: 0 • Other: 1
Actions Timeline
Effective immediately
6/20/2025HouseFiled without the Governor's signature
6/20/2025HouseSent to the Governor
5/31/2025HouseSigned in the Senate
5/31/2025SenateSigned in the House
5/30/2025HouseReported enrolled
5/30/2025HouseSenate passage reported
5/29/2025HouseRecord vote
5/28/2025SenatePassed
5/28/2025SenateRead 3rd time
5/28/2025SenateRecord vote
5/28/2025SenateThree day rule suspended
5/28/2025SenateVote recorded in Journal
5/28/2025SenateRead 2nd time & passed to 3rd reading
5/28/2025SenateLaid before the Senate
5/28/2025SenatePlaced on local & uncontested calendar
5/28/2025SenateCommittee report printed and distributed
5/22/2025SenateRecommended for local & uncontested calendar
5/22/2025SenateReported favorably w/o amendments
5/22/2025SenateVote taken in committee
5/22/2025SenateConsidered in public hearing
5/22/2025SenateScheduled for public hearing on . . .
5/22/2025SenatePosting rule suspended
5/22/2025SenateReferred to Local Government
5/21/2025SenateRead first time
5/21/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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