Intergovernmental Affairs

SB 14 requires local governments in Texas to offer credits against water and wastewater impact fees for builders and developers who construct eligible water conservation or reuse projects. These credits apply to facilities that reduce water use, decrease wastewater treatment needs, lower stormwater demands, or exceed standard efficiency requirements. Local governments must establish fair procedures to calculate and approve these credits. The law takes effect January 1, 2026, directly benefiting developers who invest in qualifying water-saving infrastructure.

This bill establishes spending limits for Texas cities and counties. It requires local governments to keep annual spending within the greater of last year's total spending or last year's spending adjusted for inflation and population growth (calculated by the Legislative Budget Board). Exceptions allow exceeding the limit if voters approve it via election or during a state-declared disaster. The bill directly affects all Texas municipalities and counties by modifying their financial planning requirements.

HB 46 sets a spending cap for Texas counties, cities, school districts, and other local governments authorized to levy property taxes or issue bonds. It limits annual expenditures to either the previous year's total spending or that amount adjusted for population growth and inflation. Local governments must calculate this annual adjustment using data from the U.S. Census Bureau and post it online by January 31. Exceptions allow exceeding the cap if two-thirds of voters approve additional spending in a special election.

HB 40 allows sheriffs and constables in Texas counties with 3.3 million or more residents to contract directly with local residents, businesses, property owners' associations, or landowners to provide law enforcement services. The bill specifies these contracts must cover areas owned or managed by the contracting party and serve residents or visitors in that specific location. It prohibits county commissioners courts from blocking such agreements or dictating contract terms, giving sheriffs and constables sole authority to negotiate and finalize these arrangements. This bill applies only to large-county law enforcement entities and does not change existing county budgeting or service requirements.

HB 223 sets a spending cap for Texas cities and counties based on inflation and population growth. It limits annual expenditures to either the previous year's total or that amount multiplied by (1 + the sum of the latest inflation rate and population growth rate) as calculated by the Legislative Budget Board. Exceptions allow increased spending if voters approve it in an election or if a disaster declaration by the governor covers related costs. The bill directly affects all Texas municipalities and counties by requiring them to adjust spending plans annually using these specific economic metrics.