BILL ANALYSIS

H.B. 5370

By: Cortez

Intergovernmental Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

State law requires interlocal contracts between certain local governments to be authorized by the governing bodies of each party to the contract. The bill author has also informed the committee that this requires a significant investment of time by staff and members of the governing body on matters that are otherwise considered routine. H.B. 5370 seeks to address this issue by allowing the San Antonio Water System to use a streamlined process for entering into interlocal contracts of a certain value.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 5370 amends the Government Code to authorize the governing body of a water utility owned by a municipality containing more than 75 percent of the population of a county with a population of 2 million or more, in exception to the requirement that an interlocal contract be authorized by the governing body of each party to the contract, to establish procedures for the utility to enter into such contracts that do not exceed $100,000 without requiring the governing body's approval.

H.B. 5370 applies only to an interlocal contract entered into on or after the bill's effective date. An interlocal contract entered into before the bill's effective date is governed by the law in effect on the date the contract was entered into, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.