Texas Senate bill by Sen. Hinojosa regulates fees on water and sewer pipeline construction projects

Passed bill authored by State Sen. Juan Hinojosa aims to regulate fees imposed by districts on developers and utilities for water and sewer pipeline projects, seeking to prevent excessive or burdensome charges, according to the Texas Legislature website.

In the Senate, 11 Democrats and 20 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the House, 56 Democrats and 85 Republicans voted in favor, also with no opposing votes.

Juan Hinojosa introduced the bill in the Texas Senate on Friday, Dec. 13, 2024, ahead of the official start of the 89th regular legislative session on Jan. 14, 2025.

Hinojosa graduated from Pan American University with a BS and again from Georgetown University with a JD.

Hinojosa, a Democrat, was elected to the Texas State Senate in 2003 to represent the state’s 20th Senate district, replacing previous state senator Carlos Truan.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the authority of certain conservation and reclamation districts to impose fees for the construction of certain pipelines and associated infrastructure’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Texas Water Code to regulate fees imposed by certain districts on developers or retail public utilities proposing water or sewer pipeline construction. It restricts districts from imposing construction requirements that are unduly burdensome or charging fees exceeding the actual, reasonable, and documented costs incurred for review, legal, engineering, inspection, construction, and repair services related to the pipeline projects. The legislation will take effect immediately with a two-thirds majority vote in both houses; otherwise, it will become effective on Sept. 1, 2025.

The bill received its final legislative approval on Wednesday, May 28, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.