S.B. No. 1169 amends the Local Government Code to improve collaboration among public entities involved in water and sewer services. The bill broadens the definition of "public entity" to include water supply and sewer service corporations, allowing these entities to jointly plan and manage facilities. It introduces provisions for public entities to withdraw from a public utility agency under certain conditions, including the assumption of debts, and clarifies that public utility agencies do not have the power of eminent domain. Additionally, the bill establishes funding mechanisms for water infrastructure investments and introduces a new subchapter for receivership and temporary management of utilities, enabling state commissions to intervene in cases of non-compliance or abandonment. The legislation 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 also 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 written notice to ratepayers about rate changes and allows certain public utility 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 (Water Code 13, Local Government Code 572)
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 (Water Code 13, Local Government Code 572)
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 (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)
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 (Water Code 13, Local Government Code 572)