S.B. No. 1169 amends the Local Government Code to enhance the capabilities of public entities in Texas regarding water and sewer services. The bill expands the definition of "public entity" to include water supply and sewer service corporations, facilitating better collaboration among these entities. It introduces provisions that allow participating public entities to acquire public utilities, issue obligations secured by agency revenues, and manage facilities collectively. Importantly, the bill clarifies that a public utility agency does not have the power of eminent domain, preventing these agencies from seizing private property.

Additionally, the bill establishes a framework for the receivership and temporary management of utilities that fail to comply with regulations or abandon operations, empowering the Texas Commission on Environmental Quality and the Public Utility Commission of Texas to oversee these processes. It amends the definition of "retail public utility" to include public utility agencies and political subdivisions, while also clarifying the definition of "water and sewer utility." The legislation allows public utility agencies to provide retail services without a certificate of public convenience and necessity and introduces provisions for ratepayers to appeal decisions regarding water, drainage, or sewer rates. The bill is set to take effect immediately upon receiving a two-thirds majority vote in 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 (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)