All Roll Calls
Yes: 415 • No: 32
TexasHB 161589th Legislature Regular SessionHouse
Relating to the nonsubstantive revision of certain local laws concerning water and wastewater special districts, including a conforming amendment.
Sponsored By: Lois Kolkhorst (Republican), Jeff Leach
Became Law
ESCONDIDO WATERSHED DISTRICTFRANKLIN COUNTY WATER DISTRICTGUADALUPE-BLANCO RIVER AUTHORITYUPPER GUADALUPE RIVER AUTHORITYWILLACY COUNTY NAVIGATION DISTRICTSpecial Districts & Authorities--Navigation & PortsSpecial Districts & Authorities--River AuthoritiesSpecial Districts & Authorities--Water & UtilitySpecial Districts & Authorities--Water Control Improve Dist.Statutory Revision
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Bill Overview
Analyzed Economic Effects
28 provisions identified: 15 benefits, 0 costs, 13 mixed.
Public keeps free surplus land access
The covered authority cannot block free public recreation, hunting, or fishing on its surplus land. Its board can limit use that it considers an interference with the authority’s work. This does not open all authority property to the public.
Authority chapter grants no taxing power
The covered water and wastewater authority’s chapter does not authorize taxes or assessments. It also does not authorize debt paid from them or pledging Texas’s credit. This financing limit does not itself change residents’ taxes.
Covered bondholders keep Texas tax exemptions
Covered district bonds, their transfers, and income—including sale profits—are exempt from Texas taxation. A separate authority-bond exemption covers bonds and interest but excludes inheritance taxes. These provisions do not establish a federal tax exemption or state an investor’s savings.
Guadalupe recreation and water travel powers
The Guadalupe-Blanco River Authority can conserve and develop water and land for recreation and build supporting facilities. It can also develop inland water navigation and supporting facilities within its territory. The law does not require a particular project, guarantee public access, or provide a funding amount.
Guadalupe watershed flood and drainage powers
The Guadalupe-Blanco River Authority can help prevent river damage, floods, and soil erosion, and support watershed tree planting. It can drain and reclaim land within its territory, excluding coastal wetlands and inland marshes. The responsible commission must approve or reject qualifying flood-control and conservation plans involving work it supervises under general law. These powers do not require a specific project.
Public access to water district decisions
The Guadalupe-Blanco River Authority must keep accurate accounts and records at an official office; contracts are open at reasonable times. The district-records provision also opens board proceedings, minutes, contracts, notices, and other records to public inspection. The Upper Guadalupe River Authority must give the public a reasonable chance to speak on matters it handles. It must publish complaint procedures, respond promptly, keep complaint records, and update parties until resolution. Status updates can be withheld when notice could put an investigation at risk.
River authority faces water supply limits
The Guadalupe-Blanco River Authority cannot agree to permanently remove surface water needed for foreseeable watershed municipal needs over 50 years. Temporary, interim removal remains allowed. Its chapter grants no water rights or priority; it must obtain a commission permit under general law. The authority cannot regulate groundwater withdrawals.
Kerr County water and conservation powers
The Upper Guadalupe River Authority covers all of Kerr County, though its boundaries can change under other laws. It must conserve and develop natural resources within its territory. It can manage Upper Guadalupe River and tributary water, acquire and operate related property and facilities, and sell water and services. The facilities and property must serve useful purposes related to those waters. These provisions do not guarantee household service or set customer rates.
Water supply powers for Guadalupe communities
This nonsubstantive revision takes effect April 1, 2027, and restates the Guadalupe-Blanco River Authority’s water supply powers. The authority can manage river water and groundwater and sell water within its territory. State and local groundwater rules still apply. It can acquire water, supply facilities, and storage capacity inside or outside its territory. Outside water sales require a board finding that water needs inside its territory can still be met.
Guadalupe facility projects and shared revenue
The Guadalupe-Blanco River Authority can build, improve, maintain, and operate facilities needed for its legal duties. Its board can set contracts for construction, financing, operation, sale, lease, and related property use in the authority’s interests. Participants can share in acquiring, financing, owning, and operating property that the board finds serves an authority purpose. The board can divide project revenue in shares it considers fair and proper.
Water entities pay required relocation costs
Covered water entities must pay when exercising their powers requires moving or altering specified transport, utility, pipeline, or communications facilities. Upper Guadalupe River Authority and Escondido Watershed District payments use comparable replacement cost, without upgrades, minus net salvage value. The other covered district pays actual necessary costs, also without upgrades and minus net salvage value. These rules set no dollar amount.
Guadalupe authority sewer and power services
The Guadalupe-Blanco River Authority can develop waste collection, transport, treatment, disposal, and related facilities. It needs a municipality’s consent to build or acquire sanitary sewer facilities within that municipality. It can generate water power and electricity within its territory and distribute or sell that power inside or outside it. These provisions do not set household rates or require a project.
Water system repair plans go public
The covered authority must maintain an asset plan for its public drinking-water and wastewater systems. The plan lists assets, condition, repair and replacement priorities, costs, and financing options, with priority for systems violating regulations. The authority must review and revise it annually, and the board must approve it during annual budgeting. Findings must be posted online; the law guarantees no specific repair or customer savings.
Guadalupe borrowing and bond repayment options
The Guadalupe-Blanco River Authority can borrow, accept loans or grants, and issue bonds through a board resolution. Interim bonds must be exchanged for final bonds or paid from their proceeds; temporary bonds can later receive permanent financing. Refunding bonds can refinance outstanding debt, interest, and premiums, combine existing revenue pledges, or use additional revenue. Bond purchases with available money cannot exceed the redemption price or, for nonredeemable bonds, principal plus accrued interest. Purchased bonds must be canceled and cannot be replaced.
Water projects receive tax exemptions
Covered district projects, including Escondido Watershed District projects, are exempt from taxes and assessments the districts otherwise pay. The covered authority also receives an exemption for its purchases. The law does not require these savings to pass through to household bills.
Water rates must cover costs fairly
Beginning April 1, 2027, the law restates the Guadalupe-Blanco River Authority’s service-rate rules. Water, connection, power, and other service charges must be reasonable and nondiscriminatory. Charges must cover operations, maintenance, replacement, improvements, debt, reserves, and other listed obligations. They cannot exceed what the authority needs to meet those obligations. The law sets no actual customer rate.
District land powers retain taking limits
The covered district can acquire needed property inside or outside its boundaries, including by condemnation where that power remains valid. It can dispose of property only when no longer needed, and leases cannot interfere with its use. Covered condemnation powers expired September 1, 2013, unless the required letter reached the Texas Comptroller by December 31, 2012. The supplied text does not establish whether those letters were submitted; retained powers follow the applicable legal procedures. The covered river authority also cannot condemn publicly owned property outside its boundaries.
District debt carries tax repayment rules
The covered districts and authority must use property values as their tax method; no tax rate is set. District bonds can be backed by taxes or revenue and must mature within 40 years. Tax-backed bonds need majority voter approval, except refinancing bonds; bonds without tax backing need no election. Boards must collect enough taxes or service revenue to meet applicable operating, debt, reserve, and bond requirements. Borrowing rules also allow refinancing, liens, and trust agreements; temporary investments in direct U.S. obligations must mature within one year.
Escondido taxes and bonds need votes
The Escondido Watershed District uses property-value taxes and needs voter approval for its works and operating tax. That election sets a maximum rate; exceeding it requires another vote. Tax-backed project bonds need board authorization and majority voter approval, and must mature within 40 years. The board must collect enough taxes each year to repay them. Refinancing bonds need no election and can cover outstanding principal and interest from multiple bond series.
Escondido water powers and board limits
The Escondido Watershed District can manage water and floodwater and undertake flood prevention and land treatment. It can acquire, build, operate, and maintain works and equipment for conservation and agricultural purposes. Its five-member board is elected. Directors must be at least 18, live in the district, and own land there.
Guadalupe authority pays training and safeguards
Guadalupe-Blanco River Authority board appointees get travel costs repaid for required director training. This applies whether training happens before or after they qualify for office. The general manager, treasurer, and other staff handling authority money must provide surety bonds. The authority pays the bond premiums as operating costs.
Authority borrowing capped at $55 million
The covered authority can borrow up to $55 million total through revenue-backed notes. Interest cannot exceed 10%, and notes must mature within 40 years. Repayment uses only pledged revenue from its works, facilities, equipment, or water rights, after reasonable operating and maintenance costs. Authority taxes and property cannot be used to repay the notes.
Districts can arrange water service projects
The covered water district can hire staff, buy water and facilities, and acquire or lease reservoir storage rights. Its water processing and distribution must follow the specified Water Code rules. It can arrange municipal water services, including contracts lasting until specified bonds and refinancing bonds are paid. It can receive state or federal grants, loans, and advances for district purposes; no award amount is set. The Upper Guadalupe River Authority can build and run sewage services, make contracts, and charge customers; no household price or service guarantee is set.
Smaller water projects can skip elections
The covered authority’s bonds generally require majority voter approval. Revenue-backed bonds can skip an election when the board finds eligible land or facility costs are below $2 million. That threshold excludes bond issuance costs, construction interest, and an initial reserve deposit. Eligible uses include new projects, repairs, expansion, improvements, and completion of previously voter-approved projects. Only one bond series per new project can use this exception unless voters approve additional bonds.
District bond trouble can trigger receivership
Bondholders can petition a court for a receiver when revenue-backed district bonds face default or threatened default. This applies to bonds paid wholly or partly from revenue. The receiver can collect income other than taxes, manage business operations, and hire or dismiss staff. Selling district water or services, or making contracts for them, requires court approval.
Guadalupe bond defaults can shift control
A Guadalupe-Blanco River Authority bond resolution or agreement can provide trustee remedies after a payment or agreement default. The default must last for the period set by the resolution. Holders of 25% of outstanding principal can request trustee action in writing; holders of more than half can direct it. The trustee can seek a receiver to operate authority property and impose charges sufficient to meet obligations.
Guadalupe revenue rules protect bond repayment
The Guadalupe-Blanco River Authority pays obligations from property revenue, subject to earlier bond claims, or qualifying bond proceeds the board selects. Property-contract payments pledged to bonds, together with other pledged revenue, must cover bond payments, reserves, and related obligations. Texas protects bondholder rights and the authority’s power to set needed charges until all bond-related obligations are paid. After required expenses and obligations, surplus revenue can fund depreciation or emergency reserves, retire bonds, or support another authority purpose.
Guadalupe property powers and relocation payments
The Guadalupe-Blanco River Authority can acquire and manage property inside or outside its territory for its work. This acquisition power does not include eminent domain. It can sell or lease unneeded property, or property whose disposal the board finds serves its work. It can flood public property and require facility changes within the limits allowed for general-law districts. When it requires a facility to move or change, it pays comparable replacement cost without upgrades, minus net salvage value.
Sponsors & Cosponsors
Sponsors
Lois Kolkhorst
Republican • Senate
Jeff Leach
House
Cosponsors
David Spiller
House
Roll Call Votes
Senate vote • 5/14/2025
Record vote
Yes: 0 • No: 0
Senate vote • 5/14/2025
Record vote
Yes: 0 • No: 0
House vote • 5/7/2025
Record vote
Yes: 148 • No: 0
House vote • 5/6/2025
Record vote
Yes: 135 • No: 4
House vote • 4/29/2025
Record vote
Yes: 114 • No: 28
House vote • Unknown
Committee vote: Judiciary & Civil Jurisprudence
Yes: 11 • No: 0
Senate vote • Unknown
Committee vote: Administration
Yes: 7 • No: 0
Actions Timeline
Effective on . . . . . . . . . . . . . . . (April 1, 2027)
5/28/2025HouseFiled without the Governor's signature
5/28/2025HouseSent to the Governor
5/16/2025HouseSigned in the Senate
5/16/2025SenateSigned in the House
5/15/2025HouseReported enrolled
5/15/2025HouseSenate passage reported
5/14/2025HouseRecord vote
5/14/2025SenatePassed
5/14/2025SenateRead 3rd time
5/14/2025SenateRecord vote
5/14/2025SenateThree day rule suspended
5/14/2025SenateVote recorded in Journal
5/14/2025SenateRead 2nd time & passed to 3rd reading
5/14/2025SenateLaid before the Senate
5/14/2025SenatePlaced on local & uncontested calendar
5/14/2025SenateRecommended for local & uncontested calendar
5/12/2025SenateReported favorably w/o amendments
5/12/2025SenateVote taken in committee
5/12/2025SenateConsidered in public hearing
5/12/2025SenateScheduled for public hearing on . . .
5/12/2025SenateReferred to Administration
5/8/2025SenateRead first time
5/8/2025SenateReceived from the House
5/7/2025SenateReported engrossed
5/7/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
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