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HB 1407TEXASSession 89RState Billdead
Did Not Advance

Texas bill expands public utility agency powers for joint water and sewer projects and streamlines state oversight

Original title: 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.

Last action · May 6, 2025: Laid on the table subject to callSponsors: Ryan Guillen and 1 other

Companion · SB 1169same policy, Senate version
Bill progressHistory & official text ↓
Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Proposed

House Bill 1407 expands the legal authorities of joint public utility agencies in Texas to issue bonds, acquire property, and partner with the North American Development Bank for water infrastructure. The measure also establishes formal and temporary management procedures for failing water and sewer utilities under state commission oversight.

Why it matters

Water and sewer utility ratepayers across participating local jurisdictions face new regionalization mechanisms, altered appeal pathways for rate changes before the Public Utility Commission of Texas, and potential temporary management or by public utility agencies when local systems abandon operations.

Background
  • Public utility agencies in Texas are specialized entities formed by two or more local public entities to cooperatively own, finance, and operate utility infrastructure. context
  • The Public Utility Commission of Texas regulates retail water and sewer utility rates and service areas across the state. context

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

Public utility agencies

Gain expanded powers to issue bonds, partner with the North American Development Bank, act as receivers, and manage joint water and sewer infrastructure.

Directly affected

Ratepayers

Acquire the right to appeal rate decisions made by public utility agencies to the Public Utility Commission of Texas and receive mandatory written notices following rate changes.

Directly affected

Water and sewer utilities

Subject to potential temporary management or receivership by public utility agencies if they abandon operations, violate final orders, or fail to comply with regulations.

Directly affected

Public Utility Commission of Texas

Assumes appellate jurisdiction over public utility agency rates and must prioritize regionalization applications within 120 days.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Can a public utility agency use eminent domain under this bill?
No, except as specifically provided under Section 572.0585, a does not have the power of eminent domain.
How can ratepayers challenge a rate change imposed by a public utility agency?
Ratepayers may initiate an appeal by filing a petition for review with the Public Utility Commission of Texas and the agency within 90 days after the effective date of the rate change, signed by the lesser of 10,000 or 10 percent of eligible ratepayers.
What happens when a private water or sewer utility abandons operations?
At the request of the utility commission or the Texas Commission on Environmental Quality, the attorney general must bring suit for the appointment of a as a receiver to take over and operate the utility.

What else do you want to know?

News Coverage

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Where This Stands

This bill did not become law - Tabled in the House.

Procedural history

24 actions
  1. May 6, 2025House
    Laid on the table subject to call
  2. May 6, 2025House
    Companion considered in lieu of (SB 1169)
  3. May 5, 2025House
    Postponed (5/6/25 10:00 AM)
  4. May 5, 2025House
    Laid out as postponed business
  5. May 1, 2025House
    Postponed (5/5/25 10:00 AM)
  6. May 1, 2025HouseFloor
    Read 2nd time
Show 18 earlier actions
  1. May 1, 2025House
    Placed on General State Calendar
  2. Apr 28, 2025House
    Considered in Calendars
  3. Apr 23, 2025House
    Committee report sent to Calendars
  4. Apr 22, 2025House
    Committee report distributed
  5. Apr 22, 2025House
    Comte report filed with Committee Coordinator
  6. Apr 16, 2025HouseCommittee
    Reported favorably as substituted
  7. Apr 16, 2025House
    Committee substitute considered in committee
  8. Apr 16, 2025House
    Vote reconsidered in committee
  9. Apr 16, 2025House
    Considered in public hearing
  10. Apr 9, 2025HouseCommittee
    Reported favorably w/o amendment(s)
  11. Apr 9, 2025House
    Considered in public hearing
  12. Mar 19, 2025House
    Left pending in committee
  13. Mar 19, 2025House
    Testimony taken/registration(s) recorded in committee
  14. Mar 19, 2025House
    Considered in public hearing
  15. Mar 19, 2025House
    Scheduled for public hearing on . . .
  16. Mar 11, 2025HouseCommittee
    Referred to Natural Resources
  17. Mar 11, 2025HouseIntroduced
    Read first time
  18. Nov 19, 2024HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Ryan GuillenHouse · District 31RepublicanAuthor
Morales ShawHouseCoauthor

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Expansion of Regional Water Utility Powers

The legislation establishes a structured framework for joint public utility agencies to act as receivers and manage regional water and sewer systems.

Public Utility Commission of TexasNorth American Development BankLocal Government Code

Connected Entities

Local Government Code, Martinez, Public Utility Commission of Texas and 5 more
otherLocal Government Code“Statutory code amended by the bill regarding public utility agencies”Map →
PersonMartinez“Substitute author for C.S.H.B. No. 1407”Map →
OrganizationPublic Utility Commission of Texas“Utility commission with regulatory and appellate jurisdiction over rates and uti”Map →
OrganizationTexas Commission on Environmental Quality“Commission with oversight over environmental and utility standards”Map →
PersonMorales Shaw“Co-sponsor of HB 1407”Map →
otherWater Code“Statutory code amended by the bill regarding utility regulation and water servic”Map →
PersonRyan Guillen“Primary sponsor of HB 1407”Map →
OrganizationNorth American Development Bank“International financial institution for joint water infrastructure investment”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 75)
  • Controversy30
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz25
    Current news / social attention level

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