Relating to requirements for the purchase or acquisition of a water or sewer system.
Impact
If enacted, SB1162 would significantly affect how water and sewer systems are transferred in Texas. It would ensure a structured review process by requiring a thorough investigation of any proposed transactions to determine whether they serve the public interest. With the inclusion of mandatory public hearings upon request by the executive director of the TCEQ, the bill aims at enhancing oversight and protecting consumer interests in transactions that could affect vital public services. This reform reflects a commitment to elevating regulatory standards in water and sewer system management.
Summary
SB1162 aims to amend Section 13.301 of the Texas Water Code by establishing new requirements for the purchase or acquisition of water or sewer systems. This bill mandates that utilities or water corporations notify the Texas Commission on Environmental Quality (TCEQ) at least 120 days prior to such transactions. The bill also introduces specific requirements for public notice regarding the transaction details, including pricing, rate comparisons, anticipated costs, and potential impacts on service quality. The objective is to promote transparency and ensure that consumers are informed about changes in their water or sewer service providers.
Contention
Notably, the bill includes provisions that allow the executive director to waive the public notice requirement under specific circumstances, which could lead to debates regarding the adequacy of consumer protection in certain transactions. Opponents of such waivers argue that it might reduce transparency and could allow questionable acquisitions to proceed without adequate public scrutiny. Additionally, the provision for public hearings in cases where concerns arise about the financial or management capabilities of the acquiring entity highlights the ongoing tension between regulatory efficiency and consumer advocacy.
Relating to the transfer of functions relating to the economic regulation of water and sewer service from the Public Utility Commission of Texas and the Office of Public Utility Counsel to the Water Public Utility Commission and the Office of Water Public Utility Counsel; creating a criminal offense.
Relating to the powers, authorities, duties, and responsibilities of certain conservation and reclamation districts and to notice a person who proposes to sell or convey real property located in any of certain conservation and reclamation districts must provide to a prospective purchaser of that property.