TX HB5654

Creates Montgomery County Municipal Utility District No. 263, an 87.24-acre district in the John Corner Survey, Abstract 8, Montgomery County, Texas, under Section 59, Article XVI of the Texas Constitution

Grants the district authority to issue bonds, impose ad valorem taxes, and levy assessments and fees to fund water utility services and road projects, with road bonds requiring two-thirds voter approval and limited to one-fourth of assessed property value

Establishes a five-member board of directors with staggered four-year terms; temporary directors to be appointed by the Texas Commission on Environmental Quality on or after January 1, 2026, upon petition by majority property owners

Requires municipal consent by ordinance or resolution before holding a confirmation election if the district is located within a municipality's corporate limits or extraterritorial jurisdiction

Grants limited eminent domain power contingent on the Act receiving a two-thirds vote in both legislative chambers; if not achieved, the district may not exercise eminent domain