HB5668

HB5668 lets the Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties define areas or designate property within the district for separate taxes and bonds. The financing must support improvements, facilities or services primarily benefiting that area or property, rather than generally and directly benefiting the entire district.

The bill waives the general rule that a district must contain at least 1,000 acres to use this financing method. It also allows a defined area to include a noncontiguous tract—a separate piece of land that does not touch the rest. This is authority to structure financing within the district, not a blanket power to tax land outside it. The district retains its existing powers and duties.

The referenced Water Code procedures still matter. They require a proposed area/property and tax plan, an engineer’s report for improvements, and voter approval within the affected area or property before the covered taxes or bonds proceed. The financing is tied to that area rather than pledging the district’s full faith and credit. Purchasers must receive the prescribed additional notice that defined-area taxes may be charged on top of other district taxes. The bill does not itself draw a financing area, set its tax rate or approve bonds.

The bill became law without the governor’s signature June 20, 2025, effective September 1, 2025. The House vote of 82–46 did not meet the two-thirds threshold for immediate effect; the Senate voted 27–4. Sources: final law, history, and Water Code Subchapter J, including plans, elections, debt limits and purchaser notice.