SB 740 Texas Senate · 89th Legislature (2025)

Relating to certain proceedings by the Public Utility Commission of Texas regarding water or sewer service.

SB 740 allows Texas water and sewer utilities to use new rate structures called "system improvement charges" to recover infrastructure investment costs more efficiently. It requires the Public Utility Commission of Texas (PUC) to approve these charges and sets rules for applications, including documentation like receipts and invoices to verify costs. Utilities must file periodic updates with the PUC to adjust base rates based on these charges. The bill directly affects water and sewer utilities in Texas by changing how they can recover infrastructure costs through PUC-approved rate mechanisms, effective September 1, 2025.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Apr 2025

Senate Passage

May 2025

House Passage

May 2025

Signed into Law

Jun 2025

Introduced Jan 8, 2025 Signed Jun 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 5 edits · Jun 20, 2025

MODERATE

This bill updates Texas Water Code provisions to streamline the Public Utility Commission's authority in approving system improvement charges and utility acquisitions, particularly for municipalities and public entities. It clarifies eligibility criteria, adds new procedural requirements for applications, and establishes expedited processes for specific scenarios involving utility receiverships and temporary management.

Scope change

The bill expands eligibility for certain expedited acquisition processes to include municipalities, counties, water districts, and other public entities, and clarifies the scope of 'political subdivision' definitions in utility jurisdiction contexts.

REQUIREMENT

Added new subsections to Section 13.183 requiring the utility commission to establish standardized application forms and documentation requirements for system improvement charges.

Added Section 13.3021 establishing a new expedited process for public entities to acquire utilities in receivership, supervision, or temporary management.

ELIGIBILITY

Modified Section 13.301(l) to expand eligibility for expedited acquisition processes to include municipally owned utilities, counties, and other public entities beyond just Class A or Class B utilities.

TIMELINE

Added implementation timeline requiring the Public Utility Commission to adopt new rules by September 1, 2026, with new application procedures applying to filings received on or after that date.

DEFINITION

Modified the definition of 'political subdivision' in Section 13.183(b) to clarify which entities fall under utility commission jurisdiction for wholesale water and sewer services.

Floor votes · House May 22, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 20, 2025

Signed into law

Signed by the Governor

executive

May 28, 2025

Lower · Passed

Signed in the House

lower

May 27, 2025

Upper · Passed

Signed in the Senate

upper

May 26, 2025

Introduced

Senate concurs in House amendment(s)-reported

lower

May 26, 2025

Introduced

Senate concurs in House amendment(s)

upper

May 26, 2025

Introduced

House amendment(s) laid before the Senate

upper

May 23, 2025

Upper · Passed

House passage as amended reported

upper

May 22, 2025

Lower · Passed

Passed

lower

May 21, 2025

Lower · Passed

Passed to 3rd reading as amended

lower

May 21, 2025

Lower · Passed

Amended

lower

Apr 29, 2025

Lower · Passed

Committee report sent to Calendars

lower

Apr 29, 2025

Lower · Passed

Committee report distributed

lower

Apr 24, 2025

Lower · Passed

Reported favorably w/o amendment(s)

lower

Apr 9, 2025

Committee

Referred to Natural Resources

lower

Apr 9, 2025

Introduced

Read first time

lower

Mar 25, 2025

Introduced

Received from the Senate

lower

Mar 24, 2025

Upper · Passed

Passed

upper

Mar 24, 2025

Upper · Passed

Passed to engrossment as amended

upper

Mar 24, 2025

Upper · Passed

Amended

upper

Mar 24, 2025

Introduced

Amendment(s) offered

upper

Mar 10, 2025

Upper · Passed

Committee report printed and distributed

upper

Mar 10, 2025

Upper · Passed

Reported favorably as substituted

upper

Mar 10, 2025

Upper · Passed

Vote taken in committee

upper

Feb 24, 2025

Upper · Passed

Left pending in committee

upper

Feb 24, 2025

Upper · Passed

Testimony taken in committee

upper

Feb 7, 2025

Committee

Referred to Water, Agriculture, & Rural Affairs

upper

Feb 7, 2025

Introduced

Read first time

upper

2 primary · 2 co-sponsors