All Roll Calls
Yes: 337 • No: 99
TexasSB 116989th Legislature Regular SessionSenate
Relating to the provision of water or sewer service by public entities operating jointly or concurrently.
Sponsored By: Ryan Guillen, Adam Hinojosa (Republican)
Signed by Governor
Utilities--GeneralUtilities--Water & SewerATTORNEY GENERALENVIRONMENTAL QUALITY, TEXAS COMMISSION ONPUBLIC UTILITY COMMISSION
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 0 costs, 3 mixed.
Water agencies can run failing utilities
Texas utility or environmental regulators can authorize agencies to temporarily run providers after service stops, abandonment, receivership referrals, or specified final-order violations. The provider must receive notice and a chance to be heard at a commission meeting. When either regulator requests it, the attorney general must sue to appoint an agency as receiver after abandonment, planned abandonment, or specified final-order or judgment violations. A court-appointed receiver can collect assets and run the utility. The Public Utility Commission must prioritize qualifying agency acquisition applications and issue an approval order within 120 days after finding the application complete.
Water providers gain shared service options
Water supply and sewer service corporations can join public utility agencies, which are separate public bodies regulated as retail utilities. Participants can buy land, easements, and utilities; a purchased utility must benefit every participating entity. Agencies can operate facilities, make public or private contracts, accept grants and loans, and sell property not needed for efficient operations. Liability for a facility and its management transfers to the agency when it becomes the owner. The commission can allow service without a service certificate by rule, but only for agencies with a participating water or sewer corporation. Agencies cannot impose taxes and generally lack power to force property sales, subject to statutory exceptions.
Water customers gain rate appeal rights
Public utility agency customers can appeal water, drainage, or sewer rate decisions to the Public Utility Commission of Texas. Petitions must reach the commission and provider within 90 days after the new rates take effect. Signatures must come from the smaller of 10,000 eligible affected ratepayers or 10% of those ratepayers. Agency boards must send written notice within 60 days after a final decision, listing new rates, effective dates, and information sources. Commission-set rates must cover required costs and related obligations; state protections prevent appeals from undermining needed debt and operating revenues.
Local partners can leave but owe debt
A participating public entity can leave an agency by delivering its withdrawal ordinance or resolution at least 180 days beforehand. If that entity's revenues secure agency debt, the agency must also approve withdrawal by resolution. The departing entity assumes its share of outstanding debt, based on the benefit it received. It then loses agency rights and access to agency facility service without compensation, with no further agency duties or obligations.
Water agencies gain borrowing with safeguards
Public utility agencies can issue bonds and notes to buy, build, expand, improve, or refinance facilities serving agency purposes. Debt can be backed by facility revenue, authorized contract payments, contracted special assessments, or other agency funds. Operating and maintenance costs have first claim on pledged revenue. Using an existing facility as collateral for a new one requires each participant in the new facility's joint financing to approve; pledging revenue alone does not. Agencies can also create joint water-project funding arrangements with the North American Development Bank.
Sponsors & Cosponsors
Sponsors
Ryan Guillen
House
Adam Hinojosa
Republican • Senate
Cosponsors
Charles Perry
Republican • Senate
Roll Call Votes
House vote • 5/7/2025
Record vote
Yes: 102 • No: 45
House vote • 5/6/2025
Record vote
Yes: 111 • No: 34
Senate vote • 4/29/2025
Record vote
Yes: 26 • No: 5
Senate vote • 4/29/2025
Record vote
Yes: 26 • No: 5
Senate vote • 4/29/2025
Record vote
Yes: 26 • No: 5
Senate vote • 4/29/2025
Record vote
Yes: 26 • No: 5
House vote • Unknown
Committee vote: Natural Resources
Yes: 13 • No: 0
Senate vote • Unknown
Committee vote: Water, Agriculture and Rural Affairs
Yes: 7 • No: 0
Actions Timeline
Effective immediately
5/20/2025HouseSigned by the Governor
5/20/2025HouseSent to the Governor
5/8/2025HouseSigned in the House
5/8/2025HouseSigned in the Senate
5/8/2025SenateReported enrolled
5/7/2025SenateHouse passage reported
5/7/2025SenateStatement(s) of vote recorded in Journal
5/7/2025HouseRecord vote (RV#1577)
5/7/2025HousePassed
5/7/2025HouseRead 3rd time
5/7/2025HouseStatement(s) of vote recorded in Journal
5/6/2025HouseRecord vote (RV#1502)
5/6/2025HousePassed to 3rd reading
5/6/2025HouseRead 2nd time
5/6/2025HouseLaid out in lieu of companion (CSHB 1407)
5/6/2025HouseCommittee report sent to Calendars
5/5/2025HouseCommittee report distributed
5/5/2025HouseComte report filed with Committee Coordinator
5/5/2025HouseReported favorably w/o amendment(s)
5/2/2025HouseConsidered in formal meeting
5/2/2025HouseReferred to Natural Resources
4/30/2025HouseRead first time
4/30/2025HouseReceived from the Senate
4/29/2025HouseReported engrossed
4/29/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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