Texas House Bill HB2701

Texas 2023 - 88th Regular

• Filed: 2/23/23
• Out of House Committee: 4/24/23
• Voted on by House: 5/2/23

Caption

Relating to public utility agencies; providing authority to issue bonds; providing authority to impose assessments.

Impact

The legislation is designed to amend existing laws within the Local Government Code, specifically sections concerning public utility agencies. This would empower these agencies to engage in cooperative management of facilities, significantly benefiting at-risk utilities in small communities. Through this cooperation, the bill aims to bring about economies of scale, improving service delivery and resilience in infrastructure, particularly in areas that have historically struggled with outdated or inadequate resources.

Summary

House Bill 2701 aims to address the challenges faced by small and rural communities in Texas concerning their water and wastewater services. It focuses on facilitating cooperation and collaboration among public entities to improve the efficiency and delivery of these essential services. By providing public utility agencies with the authority to issue bonds and impose assessments, HB2701 seeks to enhance the financial structure that supports public utilities and encourages regionalized service provision.

Sentiment

Generally, the sentiment around HB2701 has been supportive, particularly among those who understand the pressing needs of underserved communities. Testimonies from representatives of local utilities and advocacy groups emphasized the necessity for enhanced collaboration and regional management of water resources. However, there remains a contingent of concern regarding how effectively the bill can be implemented and whether it adequately addresses the diverse needs of all communities affected.

Contention

Notable points of contention revolve around the bill's implications for local governance and the potential impact on community autonomy. Critics argue that while regionalization can provide benefits, there needs to be a balance to ensure local entities do not lose their voice or control over local services. This highlights the ongoing debate about the best model for public utilities and the essential nature of water services in supporting both economic and community health.

Texas Constitutional Statutes Affected

Local Government Code

• Chapter 572. Public Utility Agencies For Provision Of Water Or Sewer Service
  • Section: 001
  • Section: 012
  • Section: 051
  • Section: 052
  • Section: 053
  • Section: 061
  • Section: 062
  • Section: New Section
  • Section: 001
  • Section: 012
  • Section: 051
  • Section: 052
  • Section: 053
  • Section: 061
  • Section: New Section
  • Section: 012
  • Section: 051
  • Section: 053
  • Section: 058
  • Section: 062
  • Section: New Section

Water Code

• Chapter 13. Water Rates And Services
  • Section: 002
  • Section: 043
  • Section: 043

• Chapter 1. General Provisions
  • Section: 002