Texas 2013 - 83rd Regular

Texas House Bill HB2592

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the liability of certain special-purpose districts or authorities providing water to a purchaser for the generation of electricity.

Impact

The introduction of HB 2592 could have substantial implications for how special-purpose districts manage their contracts with water purchasers. By allowing these entities to be held liable for breaches, the bill aims to create a more accountable system regarding the distribution of water resources essential for electricity generation. This change could encourage more comprehensive compliance with contract terms and enhance the trust between water suppliers and their clients, potentially leading to more efficient water management practices. Additionally, it positions the state to better handle disputes that arise from such contracts.

Summary

House Bill 2592 addresses the liability issues surrounding special-purpose districts or authorities that provide water for electricity generation. This bill introduces a framework where these districts can waive their sovereign immunity, enabling them to be sued for breach of contract if they fail to provide water or access to water as specified in their agreements. The bill delineates the specific conditions under which local districts or authorities become liable, which is a significant legal shift impacting how water supply contracts are enforced within Texas.

Sentiment

The general sentiment surrounding HB 2592 appears to be supportive among those who advocate for clearer and more enforceable contracts involving water supply. Supporters, likely from the business and energy sectors, view this as a necessary measure to ensure reliability in water provision critical for the generation of electricity. However, there might be concerns from some local governments about the implications of waiving immunity, as it could lead to increased litigation against them, thereby straining resources and complicating their operations.

Contention

One notable point of contention regarding HB 2592 is the balance between enforcing contract compliance and maintaining the protective sovereign immunity traditionally afforded to local governments and authorities. Critics may argue that allowing lawsuits against these entities could deter them from entering water supply agreements or create an environment of fear regarding contractual obligations. Moreover, concerns about how the amendments will impact the availability of water rights for users might also emerge, especially since the bill clarifies that it does not grant any new priority to water rights, maintaining existing limitations.

Companion Bills

TX SB958

Identical Relating to the liability of certain special-purpose districts or authorities providing water to a purchaser for the generation of electricity.

Previously Filed As

TX SB1097

Relating to liability of certain municipal hospital authorities under a contract for the sale of a hospital.

TX SB2522

Relating to the notice given to purchasers of property within certain water districts.

TX HB5344

Relating to the eligibility of certain retired firefighters, police officers, and emergency medical services providers to purchase continued health benefits coverage; the creation of certain special purpose districts and the name, powers, and duties of the 3 B&J Municipal Utility District; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

TX HB2436

Relating to the sale of bonds by certain special purpose districts.

TX SB2206

Relating to the sale of bonds by certain special purpose districts.

TX HB2573

Relating to liability of certain municipal hospital authorities under a contract for the sale of a hospital.

TX HB19

Relating to the creation of a specialty trial court to hear certain cases; authorizing fees.

TX HB1752

Relating to liability for the provision to certain children of procedures and treatments for gender transitioning, gender reassignment, or gender dysphoria; providing a civil penalty.

TX HB2816

Relating to notice provided to purchasers of property and information filed with the county clerk by certain special districts.

TX SB1752

Relating to the generation and transmission of electricity.

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