Texas House Bill HB2166

Texas 2009 - 81st Regular

• Out of House Committee: 5/8/09

Caption

Relating to increased oversight, openness, transparency, and accountability for water supply or sewer service corporations.

Impact

By establishing a clear jurisdiction for municipalities over rates and operational decisions, HB 2166 aims to create a more streamlined regulatory framework. This change is expected to improve service quality and consumer trust, as municipalities can exercise more control over the entities supplying essential services to their communities. The bill also introduces provisions for the election of corporate directors, providing a structured process for nominations and voting, aimed at fostering democratic participation among shareholders and ensuring a diverse board leadership.

Summary

House Bill 2166 seeks to enhance the oversight, transparency, and accountability of water supply and sewer service corporations in Texas. The bill outlines new procedures and requirements for municipal authorities regarding the regulation of these corporations, particularly focusing on ensuring that the rates and services provided are fair, just, and reasonable. It offers municipalities greater jurisdiction over the operations of water or sewer corporations within their limits, allowing them to enforce regulations that could lead to an increase in accountability for services rendered to the public.

Contention

While the intent of the bill is to enhance scrutiny and responsibility among water supply and sewer service corporations, there may be contentious points regarding the extent of municipal power and the potential for over-regulation. Supporters argue that these measures will protect consumers from unfair practices and ensure adequate service delivery. However, critics could express concerns about the impact on smaller corporations that may struggle to adapt to the increased regulatory burden. The audit requirements introduced by the bill are also likely to stir debate on the balance between sufficient oversight and the operational flexibility necessary for these corporations to function effectively.