Texas Senate Bill SB958

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

One of the significant impacts of SB958 is the amendment of sovereign immunity provisions concerning local districts or authorities. Under the new chapter, these entities effectively waive their immunity from lawsuits when a breach of contract claim is brought forth due to failure to provide water as agreed. This change allows purchasers to hold local authorities accountable, fostering a more reliable framework for transactions involving water supply for energy generation. The bill thereby reinforces the importance of contractual obligations in the water supply sector, potentially increasing the efficiency of water delivery to energy producers.

Summary

SB958 is a legislative act that pertains to the liability of certain special-purpose districts or authorities providing water to purchasers for the generation of electricity in Texas. The bill introduces Chapter 113 to the Civil Practice and Remedies Code, which specifically addresses claims against local districts regarding breaches of water supply contracts. By doing so, it aims to facilitate legal recourse for purchasers who experience issues related to water delivery as per contractual agreements. This provision is particularly relevant in the context of the state's growing focus on energy generation and the role of water as a critical resource in the process.

Contention

Despite its potential benefits, SB958 may have raised concerns regarding the balance between governmental immunity and accountability. Critics might argue that while fostering accountability for local authorities is crucial, there remains a need to protect these entities from excessive litigation that could stem from contractual disputes. Furthermore, the specificity of the bill might limit its applicability, raising questions about the protections or rights of water users in different contexts beyond electricity generation. Thus, the conversation surrounding SB958 includes considerations about the broader implications of contract law and local governance in resource management.