The bill amends the Local Government Code to enhance the capabilities of public entities in Texas regarding water and sewer services. It expands the definition of "public entity" to include water supply and sewer service corporations, allowing these entities to operate jointly or concurrently. The bill grants participating public entities the authority to issue bonds, impose assessments, and acquire public utilities, while also detailing processes for adding or withdrawing entities from a public utility agency. Importantly, it establishes that a public utility agency does not have the power of eminent domain and outlines the liability transfer for facilities managed by the agency. Additionally, the bill introduces provisions for the temporary management of utilities by public utility agencies under specific conditions, emphasizing the oversight role of the Public Utility Commission of Texas.

Moreover, the bill amends various sections of the Water Code to enhance the regulatory framework for public utility agencies. It introduces the definition of "public utility agency" and expands the categories of entities whose ratepayers can appeal decisions regarding water, drainage, or sewer rates to the utility commission, ensuring accountability for rate-setting decisions. The bill mandates that governing bodies of municipally owned utilities and public utility agencies provide written notice to ratepayers about rate changes, including essential details. It also allows public utility agencies that include water supply or sewer service corporations to provide retail services without needing a certificate of public convenience and necessity, streamlining their operations. The bill will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Local Government Code 572.001, Local Government Code 572.012, Local Government Code 572.051, Local Government Code 572.052, Local Government Code 572.053, Local Government Code 572.058, Local Government Code 572.061, Local Government Code 572.062, Water Code 13.002, Water Code 13.043, Water Code 13.242 (Local Government Code 572, Water Code 13)
House Committee Report: Local Government Code 572.001, Local Government Code 572.012, Local Government Code 572.051, Local Government Code 572.052, Local Government Code 572.053, Local Government Code 572.058, Local Government Code 572.061, Local Government Code 572.062, Water Code 13.002, Water Code 13.043, Water Code 13.242 (Local Government Code 572, Water Code 13)