Texas Senate Bill SB1162

Texas 2013 - 83rd Regular

Caption

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.