SB 1169 Texas Senate · 89th Legislature (2025)

Relating to the provision of water or sewer service by public entities operating jointly or concurrently.

SB 1169 clarifies how local governments and water/sanitation agencies can jointly operate shared water and sewer systems. It amends Texas law to define "public entity" to include water/sewer corporations and establishes "public utility agencies" as legal entities for joint projects. Key provisions allow participating entities to jointly finance facilities through bonds, acquire land (including via eminent domain), and transfer property among partners. The law directly affects counties, municipalities, and water districts seeking to collaborate on infrastructure, streamlining their ability to plan, build, and manage shared utility systems under defined legal authority.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
May 2025
Senate Passage
May 2025
House Passage
May 2025
Signed into Law
May 2025
Introduced Feb 7, 2025 Signed May 20, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Enrolled · 7 edits · May 20, 2025
MODERATE
This bill updates Texas law to create and regulate 'public utility agencies,' which are joint entities formed by multiple public entities to provide water and sewer services. The changes define these agencies, grant them specific powers to acquire and operate facilities, establish rules for adding or removing participating entities, and add new oversight and receivership provisions to ensure reliable service delivery.
Scope change
The bill expands the scope of public utility agencies by adding new powers for joint financing, receivership authority for the Public Utility Commission of Texas, and specific provisions for regionalizing water and sewer service.
DEFINITION

Added a new definition for 'public utility agency' in the Local Government Code to clarify that these are agencies created by two or more public entities to jointly acquire, finance, and operate water and sewer facilities.

FISCAL

Added a new section allowing public utility agencies to create funding mechanisms to jointly invest in and leverage funding for water infrastructure with the North American Development Bank.

ENFORCEMENT

Added new receivership and temporary management provisions that allow the Public Utility Commission of Texas or the Texas Commission on Environmental Quality to appoint a receiver or authorize temporary management if a utility abandons operations or violates orders.

REQUIREMENT

Modified the withdrawal process for participating entities to require a resolution from the agency if bonds are secured by the entity's revenues, and added specific notice requirements for rate changes.

Added new requirements for public utility agencies to provide individual written notice to ratepayers eligible to appeal rate changes within 60 days of a final decision.

ELIGIBILITY

Modified the definition of 'water and sewer utility' in the Water Code to explicitly include public utility agencies while excluding municipalities and other political subdivisions.

TECHNICAL

Added a new section allowing public utility agencies to render retail water or sewer service without a certificate of public convenience and necessity.

Floor votes · Senate Apr 29, 2025 · House May 6, 2025

How they voted

255
Passed
Total votes 30
Apr 29, 2025
D Democratic10
10 Yea
100% Yea
R Republican20
15 Yea 5 Nay
75% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
49
Key actions
14
Committee
11
May 20, 2025
Signed into law
Signed by the Governor
executive
May 8, 2025
Lower · Passed
Signed in the House
lower
May 8, 2025
Upper · Passed
Signed in the Senate
upper
May 7, 2025
Upper · Passed
House passage reported
upper
May 7, 2025
Lower · Passed
Passed
lower
May 6, 2025
House · Passed
House Vote: pass (109-34-2)
house
May 5, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 5, 2025
Lower · Passed
Committee report distributed
lower
May 2, 2025
Lower · Passed
Reported favorably w/o amendment(s)
lower
Apr 30, 2025
Committee
Referred to Natural Resources
lower
Apr 30, 2025
Introduced
Read first time
lower
Apr 29, 2025
Introduced
Received from the Senate
lower
Apr 29, 2025
Upper · Passed
Passed
upper
Apr 16, 2025
Upper · Passed
Committee report printed and distributed
upper
Apr 16, 2025
Upper · Passed
Reported favorably as substituted
upper
Apr 14, 2025
Upper · Passed
Vote taken in committee
upper
Apr 14, 2025
Upper · Passed
Testimony taken in committee
upper
Mar 18, 2025
Committee
Referred to Water, Agriculture, & Rural Affairs
upper
Mar 18, 2025
Committee
Rereferred to committee
upper
Feb 28, 2025
Committee
Referred to Local Government
upper
Feb 28, 2025
Introduced
Read first time
upper
2 primary · 1 co-sponsor

Sponsors