PRIA Logo™
TexasHB 567089th Legislature Regular SessionHouseWALLET

Relating to the creation of the Montgomery County Municipal Utility District No. 259; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Sponsored By: Creighton, Janis Holt

Became Law

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 259Special Districts & Authorities--Municipal Utility Districts

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

District owners face voter-approved service taxes

The district can tax property for operations and upkeep only after voter approval. The board cannot set that tax above the voter-approved rate. A separate tax can pay contract obligations after a majority of district voters voting approve the contract's terms. The board can later change the contract without another vote only when the approved contract allows it. These taxes add potential costs for district property owners; the law sets no tax rate or household payment amount.

District borrowing brings taxes and safeguards

The district can issue bonds using property taxes, fees, assessments, revenue, contract payments, grants, or other district funds. Bonds backed by revenue other than property taxes or qualifying contract payments need no election. Voters must approve property taxes and property-tax-backed bonds; road bonds backed by property taxes need two-thirds approval among those voting. Total property-tax-backed road debt cannot exceed 25% of assessed district real-property value, measured when the debt is issued. Once property-tax-backed bonds are issued, annual debt taxes have no rate or amount limit until all bonds are repaid. The law sets no household tax bill; separate fees, impact fees, and assessments also create potential property and development costs.

District cannot take private property

Beginning September 1, 2025, the district cannot take private property through eminent domain. The ban applies because the law lacked a two-thirds vote of all elected members in each legislative chamber. The House recorded 81 votes in favor, below that threshold. Other entities' eminent-domain powers remain unchanged.

New utility district for Montgomery County

Beginning September 1, 2025, the law creates Montgomery County Municipal Utility District No. 259 across two tracts totaling 342.736 acres. Each city whose limits or surrounding jurisdiction includes district land must consent before the confirmation and director election. The district must follow applicable city consent terms. Five elected directors serve staggered four-year terms. Temporary directors serve until permanent directors are elected or September 1, 2029, whichever comes first. Owners holding a majority of assessed district property value can petition the Texas Commission on Environmental Quality for successor temporary directors. Districts formed by dividing this district receive the same powers and duties.

District gains road and drainage powers

The district has general municipal utility powers and can build, improve, operate, and maintain paved or gravel roads and related drainage. It can finance projects with district resources or borrowing and transfer roads to state, county, or city governments for upkeep. Projects within city limits or surrounding city jurisdiction must meet applicable city construction, zoning, and subdivision rules. County requirements apply outside those areas. The Texas Transportation Commission must approve plans for roads the state will operate and maintain.

Sponsors & Cosponsors

Sponsors

  • Creighton

    Affiliation unavailable

  • Janis Holt

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 13 • 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: Land & Resource Management

Yes: 7 • No: 0

Senate vote • Unknown

Committee vote: Local Government

Yes: 6 • No: 0 • Other: 1

Actions Timeline

  1. Effective on 9/1/25

    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

Related Bills

Back to State Legislation