S.B. No. 1194 proposes the creation of the Central Texas Water Alliance, a regional water authority designed to enhance water management and resource allocation for public benefit. The bill introduces Chapter 11020 to the Special District Local Laws Code, detailing the governance structure, operational framework, and key powers of the alliance, including the authority to issue bonds, impose fees, and exercise eminent domain. The initial sponsors of the alliance include Bell County, Bell County Water Control and Improvement District No. 1, Clearwater Underground Water Conservation District, and McLennan County. The bill emphasizes public participation and transparency, allowing local governments and private entities to petition for inclusion or removal from the alliance, and establishes a board of directors to manage the alliance with staggered terms and specific eligibility criteria.

Additionally, the bill includes provisions that limit directors to a maximum of five consecutive terms and clarifies the processes for their removal and appointment. It grants the alliance broad powers to manage water resources, including the construction of facilities and implementation of conservation plans, while explicitly prohibiting the use of eminent domain for groundwater rights. Financial provisions allow the alliance to issue revenue bonds without an election and to adjust rates as necessary to meet financial obligations. A significant insertion in the bill is the explicit limitation on the exercise of eminent domain, ensuring the alliance's authority is constrained. The bill will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if not passed by that threshold.

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