The bill, S.B. No. 2872, amends the Utilities Code in Texas to establish regulations regarding connection reservation contracts between individuals and municipalities or special utility districts. A new definition for "Connection" is introduced, which describes it as a standardized measure of consumption, use, generation, or discharge related to a unit of development, calculated according to accepted engineering or planning standards. This definition allows for various forms of measurement, including single-family equivalent connections and living unit equivalents.

Additionally, the bill mandates that any connection reservation contract must include an expiration date, which cannot exceed ten years from the reservation date. It also requires municipalities or special utility districts to notify individuals at least 30 days before the expiration of the connection term. This legislation aims to provide clarity and enforceability in connection reservation contracts, ensuring that individuals are adequately informed about the status of their connections. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Utilities Code 49.001 (Utilities Code 49)