S.B. No. 1169 amends the Local Government Code to improve the framework for public entities that provide water and sewer services. The bill expands the definition of "public entity" to include water supply and sewer service corporations, allowing these entities to acquire land and property for facilities through purchase or eminent domain. It also introduces provisions for the transfer of property interests among entities and clarifies that public utility agencies do not possess the power of eminent domain. Additionally, the bill establishes a new subchapter for receivership and temporary management of utilities, enabling the Texas Commission on Environmental Quality and the Public Utility Commission of Texas to intervene in cases of operational abandonment or regulatory violations.

Moreover, the bill amends the Water Code to redefine terms related to public utilities and enhance ratepayer rights. It expands the definition of "retail public utility" to include public utility agencies and political subdivisions while clarifying the definition of "water and sewer utility" by removing references to political subdivisions, except for affected counties. Ratepayers of public utility agencies are granted the right to appeal rate decisions to the utility commission and must receive written notice of rate changes within 60 days. The bill also allows public utility agencies to provide retail services without needing a certificate of public convenience and necessity, streamlining their operational processes. The bill is set to take effect immediately upon a two-thirds vote from both houses 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)