S.B. No. 1169 amends the Local Government Code to improve collaboration among public entities in delivering water and sewer services. The bill broadens the definition of "public entity" to include water supply and sewer service corporations, enabling these entities to engage in joint operations. It outlines the powers of these public entities, such as acquiring land, issuing bonds, and managing facilities. Additionally, the bill introduces provisions for public utility agencies to acquire public utilities and establishes a framework for the addition or withdrawal of entities, addressing outstanding debts and obligations. It also clarifies the jurisdiction of the Public Utility Commission of Texas over public utility agencies and their rates, while creating a new subchapter for receivership and temporary management of utilities that have abandoned operations or violated regulations. The bill further amends the definition of "retail public utility" to include public utility agency and political subdivisions or agencies providing potable water or sewer services for compensation. It clarifies the definition of "water and sewer utility" by adding public utility agency and water supply or sewer service corporations, while removing a political subdivision of the state, except for affected counties. The bill expands the list of entities whose ratepayers can appeal rate decisions to include a public utility agency and modifies the appeal process to ensure proper notification for ratepayers outside municipal boundaries. It mandates that public utility agencies notify ratepayers about rate changes and allows certain agencies to provide retail services without a certificate of public convenience and necessity. 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 (Local Government Code 572, Water Code 13)
Senate 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)
Engrossed: 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)
Enrolled: 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)