BILL ANALYSIS

S.B. 1243

By: Birdwell

Natural Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that in 2011 the Acton Municipal Utility District (AMUD) and the Johnson County Special Utility District (JCSUD) together purchased the Surface Water Advanced Treatment System plant from the Brazos River Authority and that, in order to accomplish this two-party ownership, legislation was passed by the Texas Legislature to allow for the creation of the Brazos Regional Public Utility Agency (BRPUA). The bill sponsor has also informed the committee that AMUD has now purchased JCSUD's interest in the plant and is now the plant's sole owner, giving AMUD the capacity to provide enough water to serve its growing customer base for many years to come, and that, since AMUD is now the sole owner, the BRPUA as an entity is no longer needed and now exists as an extra layer of government. The bill sponsor has further informed the committee that dissolving BRPUA and integrating its operations within the AMUD organization would increase government efficiency and decrease administrative costs. S.B. 1243 seeks to address this issue by providing for the dissolution of a public utility agency by its participating public entities.

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

S.B. 1243 amends the Local Government Code to authorize the public entities that participate in a public utility agency to dissolve by concurrent ordinances the agency and transfer all obligations, assets, permits, and licenses of the agency to the remaining public entities. The bill authorizes a public entity that is the only remaining participant in a public utility agency by ordinance to dissolve the agency as such.

EFFECTIVE DATE

September 1, 2025.