Texas 2025 - 89th Regular

Texas Senate Bill SB740

Filed
1/8/25  
Out of Senate Committee
3/10/25  
Voted on by House
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to certain proceedings by the Public Utility Commission of Texas regarding water or sewer service.

Impact

If enacted, SB740 would directly amend the Water Code by introducing provisions that streamline regulatory processes for utilities in distress. This includes waiving specific public notice requirements and allowing for a faster approval process for transactions deemed to be in the public interest. The bill aims to significantly improve the operational capabilities of water and sewer utilities that might otherwise be unable to maintain services due to financial or managerial inadequacies. The regulatory framework will be thereby adjusted to facilitate quicker recoveries of utility services, enhancing stability and reliability for consumers.

Summary

Senate Bill 740 seeks to establish an expedited process for certain proceedings conducted by the Public Utility Commission of Texas (PUC) related to the acquisition of water or sewer utilities that are in receivership or temporary management. The bill is crafted to facilitate the acquisition of owned stock or assets from struggling utilities to ensure continued service delivery to customers. It reflects a response to the need for more efficient regulatory practices within the water and sewer service sectors, allowing for a more responsive and supportive approach to managing utilities facing operational challenges.

Sentiment

Discussions surrounding SB740 reveal a generally positive sentiment among proponents, who argue that the bill will improve the ability of local governments and public utility agencies to manage failing utilities effectively. Supporters emphasize the necessity of quick actions to safeguard consumer interests and ensure that public services are maintained without significant disruptions. However, there are also concerns from some stakeholders about the implications of expedited processes, particularly regarding the potential lack of transparency and community input.

Contention

Notable points of contention include debates over the balance between efficient utility management and the rights of municipalities or local governing bodies. Critics worry that the expedited processes may lead to significant changes in local utility management that do not adequately consider community needs. The bill could centralize authority in a manner that diminishes local control over utility services, leading to fears among local governments about their ability to govern and respond to their constituents' concerns effectively.

Texas Constitutional Statutes Affected

Water Code

  • Chapter 13. Water Rates And Services
    • Section: 183
    • Section: 301
    • Section: 302
    • Section: New Section
    • Section: 412
    • Section: 4132
    • Section: 301
    • Section: 302
    • Section: New Section
    • Section: 412
    • Section: 4132
    • Section: 301
    • Section: New Section
    • Section: 412
    • Section: 4132
    • Section: 002
    • Section: 183
    • Section: 301
    • Section: 302
    • Section: New Section
    • Section: 412
    • Section: 4132

Companion Bills

TX HB2500

Identical Relating to certain proceedings by the Public Utility Commission of Texas regarding water or sewer service.

Similar Bills

No similar bills found.