Texas House Bill HB2592

Texas 2013 - 83rd Regular

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.