The bill amends the Local Government Code to broaden the definition of "public entity" to include water supply and sewer service corporations, enabling these entities to collaboratively plan, acquire, construct, and maintain water and sewer facilities. It grants these public entities the authority to issue bonds, impose assessments, and acquire public utilities, while also detailing the processes for adding or withdrawing entities from a public utility agency. Importantly, the bill clarifies that public utility agencies do not possess the power of eminent domain and outlines the transfer of liability upon the ownership of facilities. Additionally, it allows for the temporary management of utilities by public utility agencies under specific conditions, such as operational abandonment or regulatory violations.

Furthermore, the bill amends various sections of the Water Code to strengthen the regulatory framework for public utility agencies. Key insertions include defining "public utility agency" as an entity created under Chapter 572 of the Local Government Code and allowing ratepayers of public utility agencies to appeal decisions regarding their water, drainage, or sewer rates to the utility commission. The bill also mandates that public utility agencies notify ratepayers of any rate changes and permits these agencies to provide retail services without a certificate of public convenience and necessity. The legislation is designed to enhance collaboration among public entities and ensure effective management of water and sewer services in Texas, with an effective date contingent on legislative approval.

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)