TexasSB 119489th Legislature Regular SessionSenate

Relating to creating the Central Texas Water Alliance; providing authority to issue bonds; granting the power of eminent domain; providing authority to impose fees.

Sponsored By: Brad Buckley, Pat Curry, Pete Flores (Republican), Hillary Hickland, David Spiller

Signed by Governor

BELL COUNTY WATER CONTROL & IMPROVEMENT DISTRICT NO. 1CENTRAL TEXAS WATER ALLIANCECLEARWATER UNDERGROUND WATER CONSERVATION DISTRICTBELL COUNTYMCLENNAN COUNTYCity Government--UtilitiesCounty Government--GeneralSpecial Districts & Authorities--Water & UtilitySpecial Districts & Authorities--Water Control Improve Dist.Water--DevelopmentPUBLIC NOTICE

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 3 benefits, 1 costs, 5 mixed.

Property takings face water rights limits

The law ties the Alliance's eminent-domain power to two-thirds approval in both legislative chambers. With that approval, the Alliance can take property interests needed for its authorized work under Texas eminent-domain procedures. Without that approval, the law prohibits the Alliance from using eminent domain. The Alliance cannot use eminent domain to take groundwater rights, water, or water rights. No specific properties or payment amounts are identified.

Alliance investors receive state tax exemptions

Alliance bonds, notes, and other qualifying debt are exempt from Texas state and local taxes. The exemption also covers related transactions, interest, and profits from selling those obligations. This law does not establish a federal tax exemption or specify an investor savings amount.

Sponsors appoint and control water directors

Except for the initial board, the Alliance has 5–18 directors, with seats based on each sponsor's contracted water amount. Each sponsor appoints at least one director and can remove its appointee at any time, with or without cause. Sponsors fill vacant seats for the remaining term. Directors must be at least 18 and either live in Alliance territory or work for a sponsor; sponsor officials can serve. Annual appointments run January 1–February 28, with staggered three-year terms beginning March 1 and a five-consecutive-term limit. Initial appointments are required 30–90 days after the law takes effect, with staggered expirations on February 28 in 2027, 2028, and 2029.

New Central Texas regional water authority

The law creates the Central Texas Water Alliance for regional water and wastewater services. Initial sponsors are Bell County, McLennan County, Bell County Water Control & Improvement District No. 1, and Clearwater Underground Water Conservation District. Its territory covers sponsor boundaries and service areas, plus areas later added under law. The Alliance can build and operate reservoirs, wells, treatment plants, water reuse systems, and underground water storage projects. It can serve wholesale customers inside or outside its boundaries and enforce water-saving and drought plans. The law requires no specific project or household water restriction. It takes effect immediately with two-thirds approval in both legislative chambers; otherwise, its effective date is September 1, 2025.

Water board safeguards and lawsuit limits

Directors must disclose when their appointing sponsor regulates an issue before the board and stop taking part. They cannot attend closed meetings on that issue. They cannot vote unless a majority of directors must file the same kind of disclosure. Directors are public officials, and directors and officers receive governmental immunity for actions in their official roles. That immunity can limit residents' legal claims over covered actions.

Water fees, but no Alliance property tax

The Alliance must set rates and fees, which can differ by customer group, project, or service area. Contracting entities must collect and pledge enough money to cover their required payments. The Alliance cannot impose its own property tax, but contracting entities can pledge property taxes they have authority to impose. Contract payments count as operating expenses unless an earlier debt obligation prevents that treatment. Household effects can flow through local water bills or pledged local revenues; the law sets no dollar amounts.

Joining or leaving carries water obligations

The board can admit a local government or private entity when membership benefits it and serves the Alliance's interests. Joining adds its territory or service area and brings Alliance rights, duties, assets, and financial obligations. Local governments must publish notice weekly for two consecutive weeks, starting at least 14 days before the admission order takes effect. A sponsor can request removal, but leaving cannot conflict with outstanding Alliance debt. The board can require payment of debt issued for that sponsor, a proportional share of other debt when permitted, and transition steps. Membership continues until those conditions are satisfied; former sponsors can still contract for services.

Utility transfers need no voter approval

Sponsors can transfer utility facilities, assets, or ownership interests to the Alliance without holding an election. These transfers are exempt from Chapter 1502 of the Texas Government Code. This gives sponsors a simpler transfer path but removes an election requirement for these transfers. The law sets no related household payment or rate change.

Water projects gain revenue-backed borrowing options

The Alliance can accept gifts, grants, loans, and other money, and issue revenue-backed debt without an election. Debt repayment comes only from available funds or revenues, including service fees, water sales, facility income, and contracts. Debt can carry liens or mortgages on facilities, be sold publicly or privately, and replace earlier debt. Repayment forecasts can include rate increases when the approving resolution states an intent to raise rates as needed. The law provides no fixed funding amount, bond amount, or rate increase.

Sponsors & Cosponsors

Sponsors

  • Brad Buckley

    House

  • Pat Curry

    House

  • Pete Flores

    Republican • Senate

  • Hillary Hickland

    House

  • David Spiller

    House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 367 • No: 57

House vote • 4/30/2025

Record vote

Yes: 121 • No: 20

House vote • 4/29/2025

Record vote

Yes: 121 • No: 25

Senate vote • 3/27/2025

Record vote

Yes: 27 • No: 3

Senate vote • 3/27/2025

Record vote

Yes: 27 • No: 3

Senate vote • 3/27/2025

Record vote

Yes: 27 • No: 3

Senate vote • 3/27/2025

Record vote

Yes: 27 • No: 3

House vote • Unknown

Committee vote: Natural Resources

Yes: 11 • No: 0

Senate vote • Unknown

Committee vote: Water, Agriculture and Rural Affairs

Yes: 6 • No: 0

Actions Timeline

  1. Effective immediately

    5/15/2025House
  2. Signed by the Governor

    5/15/2025House
  3. Sent to the Governor

    5/6/2025House
  4. Signed in the House

    5/5/2025House
  5. Signed in the Senate

    5/5/2025Senate
  6. Reported enrolled

    4/30/2025Senate
  7. House passage reported

    4/30/2025Senate
  8. Statement(s) of vote recorded in Journal

    4/30/2025House
  9. Record vote (RV#949)

    4/30/2025House
  10. Passed

    4/30/2025House
  11. Read 3rd time

    4/30/2025House
  12. Statement(s) of vote recorded in Journal

    4/29/2025House
  13. Record vote (RV#896)

    4/29/2025House
  14. Passed to 3rd reading

    4/29/2025House
  15. Read 2nd time

    4/29/2025House
  16. Laid out in lieu of companion (HB 2626)

    4/29/2025House
  17. Committee report sent to Calendars

    4/29/2025House
  18. Committee report distributed

    4/28/2025House
  19. Comte report filed with Committee Coordinator

    4/28/2025House
  20. Reported favorably w/o amendment(s)

    4/24/2025House
  21. Considered in formal meeting

    4/24/2025House
  22. Referred to Natural Resources

    4/9/2025House
  23. Read first time

    4/9/2025House
  24. Received from the Senate

    3/31/2025House
  25. Reported engrossed

    3/27/2025Senate

Bill Text

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