Texas 2025 - 89th Regular

Texas House Bill HB5370

Filed
3/14/25  
Out of House Committee
5/7/25  
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the requirements for interlocal contracts.

Impact

The changes introduced by HB 5370 will affect how municipalities and intergovernmental entities engage with one another through contracts. By enabling quicker agreements for essential services, the bill proposes to enhance collaborative efforts among local governments in managing resources, especially in densely populated areas. Additionally, existing contracts entered before the effective date of the bill will remain governed by previous statutes, ensuring a transition period that respects prior agreements.

Summary

House Bill 5370 focuses on the requirements for interlocal contracts within the state of Texas. It specifically amends provisions within the Government Code to streamline the contract approval process for certain municipal utilities, such as water and electric companies, particularly in larger populations. The bill allows governing bodies of these utilities more autonomy in entering contracts below a specified monetary threshold without needing additional approval from their governing bodies, thereby increasing efficiency in governmental operations.

Sentiment

The sentiment around HB 5370 appears to be generally positive among those who support the need for efficient interlocal agreements. Advocates argue that the streamlined process will reduce bureaucratic delays and facilitate necessary services. However, there are concerns from some legislators about potential accountability issues given the decreased oversight for the specified utilities, highlighting the balance needed between efficiency and proper governance.

Contention

Notable points of contention arise from the bill's potential to diminish local governance control over significant financial transactions, particularly as it pertains to essential public services. Opponents fear that allowing utilities to contract independently may lead to a lack of transparency and could disadvantage smaller municipalities that may not possess the negotiating capabilities of larger entities. This debate underscores a fundamental tension between operational efficiency and the preservation of local authority in public service management.

Texas Constitutional Statutes Affected

Government Code

  • Chapter 791. Interlocal Cooperation Contracts
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX SB1781

Relating to health coverage for school district and open-enrollment charter school employees under interlocal contracts.

TX HB2710

Relating to school district purchasing of and contracting for goods and services.

TX SB1828

Relating to the procurement by local governments of energy savings performance contracts for certain conservation measures; creating criminal offenses; authorizing a fee.

TX HB2401

Relating to certain contracting requirements under the Medicaid managed care delivery model.

TX HB2165

Relating to requirements for subscription service contracts; providing a civil penalty.

TX HB857

Relating to the requirement for payment bonds from certain public work contractors.

TX HB3013

Relating to exempting certain contracts from procurement notice requirements.

TX HB3844

Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

TX SB1958

Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

TX HB170

Relating to certain requirements applicable to certain public entities that engage in lobbying.

Similar Bills

No similar bills found.