The bill amends the Local Government Code to enhance the capabilities of public entities in Texas concerning water and sewer services. It expands the definition of "public entity" to include water supply and sewer service corporations, enabling these entities to jointly plan, acquire, construct, and maintain facilities. The bill grants public entities the authority to issue bonds and impose assessments for financing these activities. Key amendments allow public utility agencies to acquire public utilities, manage facilities, and enter into operational contracts. It also establishes a framework for the withdrawal of participating entities from public utility agencies and outlines the agency's powers, including issuing obligations secured by various revenue sources.

Additionally, the bill introduces a new subchapter addressing receivership and temporary management of utilities, allowing the Texas Commission on Environmental Quality and the Public Utility Commission of Texas to intervene in cases of non-compliance or abandoned operations. It prioritizes regionalization applications for water and sewer services and permits temporary management by public utility agencies under specific conditions. The bill also amends the Water Code to enhance the regulatory framework for public utility agencies, including the definition of "public utility agency" and requirements for written notice to ratepayers regarding rate changes. It allows certain public utility agencies to provide retail services without a certificate of public convenience and necessity and ensures compliance with local government code provisions in rate appeals. The bill will take effect immediately upon a two-thirds vote or on September 1, 2025, if that threshold is not met.

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 (Water Code 13, Local Government Code 572)
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 (Water Code 13, Local Government Code 572)