Transcript Highlights:

• However, in some cities, municipally owned utilities adopt increased rates charged to tax exempt entities
• House Bill 685 would prohibit a municipality from adopting an increased rate for water or sewer utility
• Uh, I manage the municipally owned electric, water, and wastewater utilities, uh, in San Marcos.
• Will be placed on the utility.
• So the investor-owned utilities are, are, are, um, a private company versus a municipally owned utility

Bills: HB 29, HB 685, HB 1633, HB 1689, HB 1690, HB 1918, HB 2010, HB 2500, HB 2608, HB 2626

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• San Antonio Water System requires that these municipally owned utilities who exceed the water loss threshold
• If anything, we'd suggest that more municipalities that are a little bit lower or utilities that cover
• Members of the committee, as you know, water districts, including municipal utility districts. ... a
• Therefore, at any moment, they could exercise their authority under that municipal utility district without
• utility district.

Bills: HB29, HB685, HB1633, HB1689, HB1690, HB1918, HB2010, HB2500, HB2608, HB2626, HB29

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• However, in some cities, municipally-owned utilities adopt increased rates charged to tax-exempt entities
• I manage the municipally owned electric, water, and wastewater utilities in San Marcos.
• Rate cases are a vital part of utility regulation that allow a utility to seek.
• The distinction between investor-owned utilities and municipally owned or other water supply corporations
• are a part of that. private company versus a municipally owned utility, where it's envisioned for the

Bills: HB29, HB685, HB1633, HB1689, HB1690, HB1918, HB2010, HB2500, HB2608, HB2626, HB29

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• Potentially create a problem for these, uh, utility, uh, utilities, uh, if they started to serve, uh,
• Uh, we had up in our district, uh, special utility district and a mud came together, uh, and created
• a public utility agency.
• I'm the general manager of Active municipal utility District, and certainly I'm speaking in favor of
• like every other district.

Bills: HB 5208, SB 863, SB 1243, SB 1624, SB 1965, SB 2660, SB 2702, SB 2885

Keywords: water filtration, public drinking water, health and safety, well maintenance, water quality, Edwards Aquifer, water conservation, reclaimed water, aquifer storage, environmental protection, public utility agency, dissolution, local government, regulatory framework, municipal authority, Texas Water Bank, Texas Water Trust, water rights, water banking, instream flow

Transcript Highlights:

• We had, up in our district, a special utility district, and a MUD came together and created a public
• utility agency.
• I'm the General Manager of Acton Municipal Utility District, and certainly, I'm speaking in favor of
• the needs of this district.
• like every other district.

Bills: HB5208, SB863, SB1243, SB1624, SB1965, SB2660, SB2702, SB2885

Keywords: water filtration, public drinking water, health and safety, well maintenance, water quality, Edwards Aquifer, water conservation, reclaimed water, aquifer storage, environmental protection, public utility agency, dissolution, local government, regulatory framework, municipal authority, Texas Water Bank, Texas Water Trust, water rights, water banking, instream flow

Transcript Highlights:

• We represent about over 900 utilities that provide water and wastewater utility services to rural communities
• We represent about over 900 utilities that provide water and wastewater utility services to rural communities
• Current law, however, is unclear as to whether counties, municipalities, and certain special districts
• are multiple senators' districts, multiple representative districts.
• And so I'll just... ...districts, multiple representative districts.

Bills: SB480, SB767, SB790, SB971, SB1066

Keywords: water resources, interlocal contracts, local government, collaboration, planning activities, wildfire response, firefighting equipment, emergency services, state database, Texas Forest Service, customer complaints, Public Utility Commission, water service, complaint process, utility regulation, SB 971, Texas Water Assistance Program, Water Code, rural political subdivision, rural water

Summary: The Senate Committee on Water, Agriculture, and Rural Affairs met on Texas Water Day and limited public testimony to two minutes. The chair emphasized the need to move quickly because of scheduling conflicts with other committees and noted the importance of water policy and related stakeholders. The committee heard several bills focused on water administration, rural utilities, emergency response, and public works contracting. Senate Bill 790 by Senator Alvarado would let the Public Utility Commission create a simplified process for resolving tenant complaints over water or wastewater bill discrepancies; it was described as a way to avoid lengthy contested-case hearings for small disputes. Senate Bill 971 by Senator Sparks would clean up conflicting statutory definitions of “rural political subdivision” so Texas Water Development Board programs are applied consistently; Texas Rural Water Association testified in support. Senate Bill 767, also by Senator Sparks, would expand and improve a statewide database of fire-response equipment so departments, including volunteer and rural departments, can locate and share resources more effectively during emergencies; fire service witnesses supported the bill and suggested annual updates to keep the database current. Chair Perry laid out Senate Bill 480 to clarify that local governments and special districts may enter interlocal agreements for water-related planning and research, including aquifer management and flood/water planning. He also presented Senate Bill 1066, which raises payment and performance bond thresholds for Texas Parks and Wildlife Department public works contracts to $150,000, arguing the change would reflect inflation and help smaller vendors on lower-risk projects. Witnesses were heard on the bills, with no opposition recorded in the transcript. The committee voted out all five bills favorably. SB 1066, SB 480, SB 767, SB 790, and SB 971 each received unanimous committee approval and were recommended to the local and contested calendar, with SB 767 noted as amended by a suggested annual-update requirement for the equipment database.

Transcript Highlights:

• We represent over 900 utilities that provide water and wastewater utility services to rural communities
• They just see the municipal fire departments and they don't equate them.
• Current law, however, is unclear as to whether counties, municipalities, and... certain special districts
• Our water district management and aquifer systems...
• When those impacted in that district are in multiple Senate districts and multiple representative districts

Bills: SB480, SB767, SB790, SB971, SB1066

Keywords: water resources, interlocal contracts, local government, collaboration, planning activities, wildfire response, firefighting equipment, emergency services, state database, Texas Forest Service, customer complaints, Public Utility Commission, water service, complaint process, utility regulation, SB 971, Texas Water Assistance Program, Water Code, rural political subdivision, rural water

Transcript Highlights:

• They're eligible to vote on a ballot issue to make them some type of a municipal utility district (MUD
• Under their 501(c)(3), which municipal... That's going to kill a municipality on infrastructure.
• In the interaction of our military overlay district.
• It's an RO overlay district.
• We simply don't allow them in single-family districts.

Bills: HB24, HB2015, HB2149, HB2559, HB2701, HB2797, HB3172, HB24

Keywords: zoning, public notice, local government, residential development, protests, water conservation, municipal utility districts, Texas Commission on Environmental Quality, environmental regulation, groundwater management, nonconforming uses, zoning regulations, land use, property rights, municipal authority, municipal moratorium, development moratorium, property development, subdivision, site plan

Transcript Highlights:

• This bill requires the Municipal Utility District to include within its petition to TCEQ a plan for the
• And so this legislation seeks to go where we're seeing the growth in these Municipal Utility Districts
• utility district.
• And so this bill would ask. ...those new developments in municipal utility districts to think about building
• No, this bill would just apply to municipal utility districts who go through the TCEQ petition process

Bills: HB24, HB2015, HB2149, HB2559, HB2701, HB2797, HB3172, HB24

Keywords: zoning, public notice, local government, residential development, protests, water conservation, municipal utility districts, Texas Commission on Environmental Quality, environmental regulation, groundwater management, nonconforming uses, zoning regulations, land use, property rights, municipal authority, municipal moratorium, development moratorium, property development, subdivision, site plan

Transcript Highlights:

• Most of our members are nonprofit water supply corporations and districts, water districts.
• This inclusion will improve transparency by ensuring utilities, groundwater districts, and the public
• The district on the volumes and the water quality impacts and upon request by the district, we will perform
• Zones within a district for projects that apply for a permit from that district.
• district.

Bills: HB 937, HB 2078, HB 2080, HB 3322, HB 3350, HB 4212, HB 4630, HB 4896, HB 4951, HB 5348, HB 5675, SB 565, SB 971, SB 1662, SB 2124

Keywords: special districts, notice requirements, Water Code, government transparency, public meetings, meeting notice, transparency, public engagement, notice, elections, groundwater management, water conservation, joint planning, environmental impact, desired future conditions, groundwater, conservation district, environmental quality, regulatory review, water utility

Transcript Highlights:

• This inclusion will allow... improve transparency by ensuring utilities, groundwater districts, and the
• Water utilities, both large...
• There are some zones within districts. the majority of them are not within districts, but to date I don't
• district.
• or subsidence district.

Bills: HB937, HB2078, HB2080, HB3322, HB3350, HB4212, HB4630, HB4896, HB4951, HB5348, HB5675, SB565, SB971, SB1662, SB2124

Keywords: special districts, notice requirements, Water Code, government transparency, public meetings, meeting notice, transparency, public engagement, notice, elections, groundwater management, water conservation, joint planning, environmental impact, desired future conditions, groundwater, conservation district, environmental quality, regulatory review, water utility

Transcript Highlights:

• House Bill 3985 simply states that if a local municipality starts trying to circumvent the law, that
• House Bill 3883 requires governing bodies of the public utilities, mainly the municipalities, to advise
• users of their responsibilities in using the public utilities.
• And the measure also establishes liability protections for public utilities and third-party contract
• House Bill 4335 aims to establish a framework to regulate pet shops in municipalities and counties.

Bills: HB3985, HB3883, HB4335, HB3416, HB3417, HB3418, HB3619, HB3624, HB3463

Keywords: property rights, public nuisance, compensation claims, government enforcement, Oklahoma Safe Neighborhoods Act, public utility, municipal water, wastewater services, liability protection, third-party contractors, infrastructure maintenance, emergency response, regulatory compliance, animal welfare, pet shops, commercial breeders, county regulations, animal shelter licensing, county purchasing, procurement practices

Summary: The committee considered a series of local government, utilities, purchasing, mapping, and animal regulation bills. House Bill 3985 by Rep. Caldwell was presented as giving property owners recourse if a local municipality circumvents the law and reduces property value; it passed 6-0. House Bill 3883 by Rep. Cantrell would require public utility governing bodies to advise users of their responsibilities, adopt safeguards against system malfunctions, follow DEQ rules more closely, and provide liability protections for utilities and third-party operators; it passed 7-0. House Bill 4335 by Rep. Moore would let municipalities and counties regulate pet shops but not ban them outright, while allowing action against shops violating state animal laws and grandfathering certain existing bans; after questions about puppy mills and local authority, it passed 6-1. Rep. Storm presented House Bills 3416, 3417, and 3418 as part of a package responding to audit findings and tightening public purchasing rules. HB 3416 and HB 3417 would steer county and city bidding toward the lowest and most responsible bidders, with HB 3417 setting a $10,000 threshold for city/town bidding rules. HB 3418 would apply broader procurement reforms across property, public works, and schools, including requiring alternatives to sole-source vendors, banning restrictive bid notices, requiring ownership statements, prohibiting officials from influencing bids or sharing bid information, allowing live video of bid openings, and making Central Purchasing Act violations a misdemeanor. All three bills passed unanimously. Rep. Lawson’s HB 3619, with a PCS adopted as the bill, would expand and direct the GIS Council and one-stop mapping initiative to create a single state-owned map for use by political subdivisions, including aerial photography and boundary clarification; it passed 6-0. HB 3624 would repeal an older law tied to shifting county boundaries caused by flooding and river changes, with the goal of making county boundary maps more uniform and consistent; it also passed 6-0. Rep. Boles’ HB 3463, requested by the State Auditor’s Office, would modernize the municipal audit process for small communities under 2,500 population and codify work done over several years with the Oklahoma Municipal League; it passed 6-0. The committee then announced one more meeting would be held the following week and adjourned.

Transcript Highlights:

• I'm trying to understand the logic, for example, on school districts.
• So you don't even need to utilize COs.
• Representative Schoolcraft, I believe you raised a concern related to school districts.
• I'm not really aware of any school districts that utilize COs, so...
• I believe that under Section 1, they utilize the term "anticipation note" to pay.

Bills: SB512, SB1024

Keywords: SB 512, Texas Finance Code, money transmission, money services business, money transmitter, money transmission licensee, terms of service, consumer protection, civil penalty, attorney general enforcement, account closure, refund of balance, financial services regulation, payments industry, fintech, prepaid accounts, remittance, licensee compliance, local government debt, municipal finance

Transcript Highlights:

• The state of Texas authorized the creation of municipal utility districts, known as MUDs, ...streamline
• In Harris County alone, there are well over 500 municipal utility districts, each with its own taxing
• In fact, Municipal Utility... ...districts are one of the only municipal districts that have never required
• The state also requires that municipal management district directors either own property or have some
• utility districts more in line with the requirements we give to other municipal subdivisions that can

Bills: HB602, HB1322, HB1930, HB2225, HB2304, HB2494, HB3275, HB3810, HB3919

Keywords: affordable housing, land use, zoning, urban planning, community development, housing crisis, mixed-use development, sustainability, municipal utility district, board of directors, qualifications, land ownership, Texas, taxation, residency, municipal approval, subdivision plans, local governance, plats, local government

Transcript Highlights:

• Dallas fully provides municipal...
• Utility District, which was created... by the 86th legislature in 2019 but never fully began operations
• The district no longer has a function or a need, and all parties have agreed. that the district is no
• Parks got baked into municipal codes and are rarely updated.
• You have to live in the district in which you are mud.

Bills: HB602, HB1322, HB1930, HB2225, HB2304, HB2494, HB3275, HB3810, HB3919

Keywords: affordable housing, land use, zoning, urban planning, community development, housing crisis, mixed-use development, sustainability, municipal utility district, board of directors, qualifications, land ownership, Texas, taxation, residency, municipal approval, subdivision plans, local governance, plats, local government

Transcript Highlights:

• But this bill deals with utilities and municipal services, specifically.
• Further, it removes municipal natural gas utilities from the bill's provisions. The reason...
• Further, it removes municipal natural gas utilities from the bill's provisions.
• This also removes a provision that limited the amount of gross municipal utility revenues that may be
• , is within 2,000 meters of a municipal utility facility, and the utility has sufficient capacity to

Bills: S0936, S1724, S1014, S1498

Keywords: temporary door locking device, emergency safety, building code, training programs, fire exit security, utility services, municipal agreements, public meetings, rates and fees, public service commission, municipal utility, water service, wastewater service, property owners, annexation, civil action, community associations, condominium, homeowners associations, structural integrity

Summary: The Committee on Regulated Industries met with a quorum and took up four bills. First, it considered SB 1724 on municipal utility services. Senator Martin offered a late-filed delete-everything amendment that would require annual customer meetings for extraterritorial utility customers, cap use of gross utility revenues for general government at 10%, eliminate a 25% surcharge on customers outside city limits, reduce the rate differential cap from 50% to 25%, remove municipal natural gas utilities from the bill, and preserve certain existing bond-related surcharges until debt is retired or refinanced. The League of Cities raised implementation concerns about the July 1, 2026 effective date and the need for rate studies and budget adjustments. The amendment was adopted and the committee reported CS/SB 1724 favorably. The committee then heard SB 936 on temporary door locking devices from Senator McLean. The bill would define temporary door locking devices, allow them to be installed at any height, require the Florida Building Commission to add standards to the Florida Building Code, and require their use to be incorporated into safety plans, drills, and training. With no opposition or amendments, SB 936 was reported favorably. Next, the committee considered SB 1014 by Senator Mayfield, which would prohibit municipalities from refusing water or wastewater service solely because a property owner will not annex, and would require service expansion when a property is near a municipal main line, not served by another utility, and the utility has capacity. A committee amendment narrowed the bill to properties near a main line and reduced the distance threshold from 2,000 meters to one-half mile. The Florida League of Cities opposed the bill as amended, citing concerns about property size, annexation conflicts, enclave creation, and possible revenue impacts, but the bill was reported favorably. Finally, the committee heard SB 1498 on community associations from Chair Bradley. A strike-all amendment revised technical provisions on video conference recordings, turnover inspection reports, SIRS references, and electronic voting, and added two major policy changes: requiring associations to provide records to law enforcement and prosecutors and creating a second-degree misdemeanor for willful refusal, and prohibiting mandatory club or amenity fee schemes controlled by developers or third parties that generate profit beyond proportional expenses. Testimony in support described homeowner disputes involving concentrated board control, lack of transparency, and mandatory fees in communities such as Rosedale. The amendment was adopted and CS/SB 1498 was reported favorably. At the end of the meeting, Senator Bracey Davis asked to be recorded voting in the affirmative on tabs 1, 2, and 3, and the committee adjourned.

Transcript Highlights:

• However, in some cities, municipally owned utilities adopt increased rates charged to tax-exempt entities
• House Bill 685 keeps a municipality from adopting an increased rate for water or sewer utility service
• Currently, the municipality may petition the Public Utility Commission to decertify a portion of a retail
• water utility certificate of convenience and necessity after the municipality has annexed the area.
• the territory are transferred to the municipality, and the rural water utility receives just compensation

Bills: HB630, HB685, HB1318, HB2692

Keywords: outboard motors, certificate of title, vessel regulation, Texas Parks and Wildlife Code, marine documentation, HB 685, municipal utility rates, water rates, sewer rates, local government code, rate discrimination, tax-exempt entities, sales tax exemption, ad valorem tax exemption, nonprofit organizations, charitable organizations, municipal water service, municipal sewer service, utility billing, public utilities

Summary: The Senate Committee on Water, Agriculture, and Rural Affairs met with no quorum at the start, but later reached quorum and took up several bills. House Bill 2692, codifying the San Antonio River Authority’s enabling legislation and making non-substantive modernization changes, received brief supportive testimony from the River Authority and was left pending before later being voted out favorably. House Bill 685, which would prevent municipalities from charging higher water or sewer rates to tax-exempt entities than comparable customers, also drew support and was reported favorably. House Bill 1318, clarifying compensation issues when a municipality decertifies part of a retail water utility’s service area, was heard without opposition and passed out of committee. House Bill 630, exempting certain older outboard motors from title requirements, likewise passed and was placed on the local and uncontested calendar. The committee spent the most time on Senate Bill 2497, relating to filtration systems for certain public drinking water systems. Senator Zaffirini described the bill as a response to ongoing secondary water quality complaints, while TCEQ testified that such contaminants are aesthetic rather than health-based and that the water remains safe to drink if primary standards are met. The Texas Rural Water Association opposed the bill as written, arguing filtration may not solve most water quality problems and could be costly for small systems, while a consumer witness from Floresville supported it and described repeated rate increases and brown water after a filtration system was removed. Members discussed narrowing the bill through a committee substitute and emphasized the need for flexibility and technical expertise; the committee substitute was adopted and the bill was reported favorably, with Senator Kolkhorst later asking to be recorded as voting no. The committee also heard Senate Bill 2850, which would create a pollinator task force to study habitat loss, public education, and best practices for protecting bees and other pollinators. Senator Menendez and invited witness Erica Thompson of Texas BeeWorks highlighted major colony losses and the economic importance of pollinators to Texas agriculture, and Environment Texas and the Texas Beekeepers Association supported the measure. Members discussed monarch butterflies, native grasses, milkweed, and conservation efforts, and the bill was reported favorably and sent to the local and uncontested calendar. After testimony, the committee also voted out several pending items, including House Bill 5560 with a committee substitute addressing water-loss penalties and infrastructure improvements, and then recessed subject to the call of the chair.

Transcript Highlights:

• But this bill deals with utilities and municipal services, specifically.
• Further, it removes municipal natural gas utilities from the bill's provisions. The reason...
• Further, it removes municipal natural gas utilities from the bill's provisions.
• This also removes a provision that limited the amount of gross municipal utility revenues that may be
• , the property is 2,000 meters of a municipal utility facility, and the utility has sufficient capacity

Bills: S0936, S1724, S1014, S1498

Keywords: temporary door locking device, emergency safety, building code, training programs, fire exit security, utility services, municipal agreements, public meetings, rates and fees, public service commission, municipal utility, water service, wastewater service, property owners, annexation, civil action, community associations, condominium, homeowners associations, structural integrity

Summary: The Committee on Regulated Industries heard and advanced four bills. First, members took up SB 1724 on utility services, adopting a late-filed delete-everything amendment by Senator Martin. The amended bill would require annual customer meetings for certain municipal utility customers outside city limits, cap use of gross utility revenues for general government purposes, require excess funds to be reinvested or returned, reduce the outside-city surcharge and rate differential caps, and phase out certain surcharges tied to existing bond covenants. The Florida League of Cities raised implementation concerns about the July 1, 2026 effective date and the need for time to complete rate studies and budget adjustments. The committee then reported the bill favorably. Members also heard SB 936 on temporary door locking devices, which would define and authorize such devices, direct the Florida Building Commission to add standards to the building code, and require their use to be incorporated into safety plans, drills, and training. With no opposition or debate, the bill was reported favorably. The committee next considered SB 1014, which would prohibit municipalities from refusing water and wastewater service solely because a property owner will not annex, if the property is near a municipal main line, not already served by another utility, and the utility has capacity. An amendment narrowed the distance trigger to one-half mile and clarified the main-line requirement. The Florida League of Cities opposed the bill as amended, citing concerns about impacts on annexation policy, potential duplication of services, and possible subsidy of outside customers, but the committee still reported the bill favorably. Finally, the committee heard SB 1498 on community associations. A strike-all amendment made technical changes to turnover inspection and electronic voting provisions and added two major policy changes: requiring associations to provide records to law enforcement and prosecutors, with a misdemeanor penalty for willful noncompliance, and prohibiting certain developer-controlled mandatory club fee arrangements that generate perpetual profit beyond proportional expenses. Testimony in support came from homeowners describing alleged governance abuses and mandatory fee schemes in their communities, while the Community Associations Institute supported the amendment. The committee reported CS for SB 1498 favorably. At the end of the meeting, Senators Bracey Davis and Calatayud asked to be recorded as voting in the affirmative on selected bills.

Transcript Highlights:

• House Bill 3985 simply states that if a local municipality starts trying to circumvent the law, property
• Committee, House Bill 3883 requires governing bodies of the public utilities, mainly the municipalities
• , to advise users of their responsibilities in using the public utilities.
• House Bill 4335 aims to establish a framework to regulate pet shops and municipalities and counties.
• There's nothing in this bill that would prevent a municipality from passing rules and regulations to

Bills: HB3985, HB3883, HB4335, HB3416, HB3417, HB3418, HB3619, HB3624, HB3463

Keywords: property rights, public nuisance, compensation claims, government enforcement, Oklahoma Safe Neighborhoods Act, public utility, municipal water, wastewater services, liability protection, third-party contractors, infrastructure maintenance, emergency response, regulatory compliance, animal welfare, pet shops, commercial breeders, county regulations, animal shelter licensing, county purchasing, procurement practices

Transcript Highlights:

• Now that is a situation with five counties serving a municipal system. We can easily get rid of St.
• Consequences related to water and gas systems could have negative consequences for regional utility systems
• My district is all here in Montgomery, so I don't have any skin in the game.

Bills: SB330

Keywords: water management, regional boards, municipal governance, ethics compliance, public utility, 1136, house, all