Texas House Bill HB490

Texas 2011 - 82nd Regular

• Introduced: 1/3/11
• Refer: 2/17/11

Caption

Relating to single certification in incorporated or annexed areas served by investor-owned water or sewer utilities.

Impact

The implications of HB 490 are significant, particularly for municipalities with a population of 1.7 million or more. The bill alters the existing water code to facilitate a more straightforward certification process for investor-owned utilities. This change would enable larger municipalities to manage their water and sewer services more effectively by reducing the administrative burden involved in the certification of new services in densely populated areas. By ensuring that investor-owned companies can seamlessly serve annexed territories, the bill could enhance service reliability and promote urban development by ensuring that essential utilities are available in newly annexed regions.

Summary

House Bill 490 is an act that primarily addresses the issue of single certification for water and sewer services in areas that have been incorporated or annexed by municipalities. The legislation specifies that it pertains to regions served by investor-owned utilities and outlines the conditions under which these utilities can obtain certification. This targeted approach aims to streamline the process of authorizing utility services in annexed areas to ensure efficient service delivery and compliance with regulatory standards. By adjusting the requirements for certification, the bill intends to provide clarity and guidance both for municipalities and service providers.

Sentiment

Sentiments regarding HB 490 appear to align with a pro-business outlook fostering investment in public utilities. Supporters of the bill, likely representing both urban municipal interests and utility companies, view the changes as necessary to adapt to the growing demand for water and sewer services in rapidly urbanizing areas. They argue that the bill will prevent service interruptions and ensure that they meet the needs of the population. However, there may be concerns regarding the oversight and regulation of investor-owned utilities to prevent abuses or subpar service. This reflects a balance between facilitating service provision and maintaining protective regulations for consumers.

Contention

While the bill aims to simplify the process of utility certification, points of contention may revolve around the implications for existing non-profit water supply entities and local control in regulating these services. Critics may argue that enabling investor-owned utilities to dominate service areas could overshadow the roles of non-profit utilities that often serve rural or less populated areas. Additionally, there may be debates about whether centralized decision-making about utility services is in the best interests of communities that may prefer localized control over their water and sewer services.