Texas House Bill HB4114

Texas 2019 - 86th Regular

Caption

Relating to the provision of water and sewer services by a municipality.

Impact

The implications of HB 4114 on Texas state law include the establishment of new provisions for the procurement of water and sewer services, which would enable entities not traditionally served by municipal providers to access these services. By allowing these entities to recover capital costs associated with their water utility agreements, the bill aims to foster improved infrastructure and service delivery. Furthermore, the prohibition on setting discriminatory rates against tax-exempt entities reinforces equitable treatment in utility service pricing.

Summary

House Bill 4114 seeks to legislate the provisions surrounding water and sewer services provided by municipalities in Texas. It encompasses new regulations that allow nonprofit entities and governmental entities within the service areas of municipal utilities to contract directly with those municipalities for water and wastewater service capacity. This bill aims to streamline the process of acquiring such services, facilitating better coordination between municipalities and entities that require these essential resources for operations.

Sentiment

The sentiment surrounding HB 4114 appears largely positive, particularly among supporters who see it as a means to enhance service accessibility and operational efficiency for nonprofit and government entities. Supporters of the bill argue that it provides necessary clarity in service agreements and encourages collaboration between municipalities and entities serving the public good. However, there may be concerns from municipalities about potential revenue impacts or administrative burdens that could arise from implementation.

Contention

One notable point of contention could arise regarding the section that prohibits municipalities from charging higher rates to tax-exempt entities solely based on their tax status. This provision may face pushback from municipalities concerned about revenue loss and the sustainability of maintaining water and sewer infrastructures. Hence, the bill must strike a balance between ensuring fair access to services and allowing municipalities to maintain fiscal responsibility while providing these essential services.