Texas House Bill HB1407

Texas 2025 - 89th Regular

• Filed: 11/19/24
• Out of House Committee: 4/22/25

Caption

Relating to the provision of water or sewer service by public entities operating jointly or concurrently; providing authority to issue bonds; providing authority to impose assessments.

Impact

The bill's provisions are expected to significantly affect local laws regarding public utilities, particularly by fostering regional cooperation among municipalities and other political subdivisions. It allows for the creation of public utility agencies composed of multiple entities, permitting them to collectively manage and finance operations. This, in turn, could lead to improved service delivery and infrastructure sustainability, particularly in underserved areas. However, critics of the bill express concern about the implications of increased centralization and the adequacy of oversight in governance structures.

Summary

House Bill 1407 focuses on enhancing the provision of water and sewer services by allowing public entities within Texas to collaborate more effectively when operating these services. The bill grants these entities broader authority to issue bonds and impose assessments, thereby facilitating the financing of necessary infrastructure improvements and expansions. By enabling joint operations, this legislation aims to streamline the management of public utility resources and address service deficiencies that may arise from fragmented operations among various entities.

Sentiment

Overall, there appears to be a supportive sentiment among proponents of HB 1407, particularly among local government leaders and utility operators who foresee tangible benefits from cooperative management and enhanced infrastructure funding capabilities. However, there exists a degree of skepticism from those wary of reduced local control and potential consequences of merged services becoming less responsive to individual community needs. Thus, while the bill has garnered significant backing, it also faces scrutiny reflecting broader debates about governance and utility management.

Contention

Notable points of contention surrounding HB 1407 revolve around the balance between efficiency and local accountability. Opponents voice concerns that merging operations could dilute the specific needs of communities and lead to a one-size-fits-all approach to service delivery. Additionally, questions arise regarding accountability and safeguards in the governance of newly formed utility agencies, especially in terms of maintaining customer service standards and regulatory compliance. As discussions continue, these issues underscore the need for careful consideration of how this legislation will reshape public utility management across Texas.

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: 058
  • Section: 061
  • Section: 062
  • Section: New Section
  • Section: 001
  • Section: 012
  • Section: 051
  • Section: 052
  • Section: 053
  • Section: 058
  • Section: New Section
  • Section: 062

Water Code

• Chapter 13. Water Rates And Services
  • Section: 002
  • Section: 043
  • Section: 242
  • Section: 002
  • Section: 002
  • Section: 043
  • Section: 242